Editor’s note: This market commentary is provided by Curtis Bosma at HighGround Dairy in Chicago, IL.

Class III Futures

Sunday’s overnight market brought Class III futures slightly higher into Monday’s market. The September contracted traded as high as $22.90. After no buyer participation in the spot cheese market futures began to sell off sharply, settling 2 to 21 cents lower through June 2015. Cheese futures were relatively unaffected by the drop in the spot market due to their discount to the spot prices. The Sept – Dec contract average settled at $1.9720 (DOWN 0.0148).

Class IV Futures

Butter futures eased off the gas Monday as contracts moved higher, but none were up the limit. The Sept – Dec contract average settled at $2.2651 (UP 0.0176). The spot market is still at a significant premium to futures as buyers continue to pick up loads to fulfill their immediate needs. The Class IV market was extremely quite Monday as very few contracts traded.

CME Spot

Buyers in the spot cheese market were silent for the first time in weeks. Cheddar blocks were offered and settle 3.5 cents lower, but there were no markets in cheddar barrels. The spot NFDM market had more selling pressure. A bid at $1.3500 was posted, but sellers were not willing to reach down for it. The butter session showed its first down day in over a week. Sixteen loads traded at prices between $2.6100 and $2.6350.

Disclaimer:  The risk of loss in trading futures and options can be substantial.  Past performance is not indicative of futures results.