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

Class III Futures

The CME dairy complex closed early Thursday and will be closed Friday for the Independence Day holiday. Although the trading day was short, Class III milk futures saw a decent amount of activity. Contracts settled 2 to 20 cents higher through the end of 2014 and first half 2015 futures also showed some support moving 4 to 10 cents higher.  After a couple of bearish days in Class III futures, Thursday’s market showed a glimpse of support at the current price range, holding above a major uptrend channel. After trailing lower all week, cheese futures bounced back slightly during Thursday’s market as well.


Class IV Futures

Class IV futures were extremely quiet on Thursday. The August contract settled at $21.72 (UP 0.19) but the deferred contracts all moved slightly lower. Butter futures moved slightly higher in the front months but sold off towards the end of the year. With the buy interest seen in Thursday’s spot butter and NFDM markets, Class IV milk futures may see some support next week after the massive sell off earlier this week. 


CME Spot

The spot cheese market continued to see a good number of buyers Thursday. Eight cheddar blocks were sold to six different buyers. The spot butter session was fairly active as a lone seller sold seven loads at five cents below the market.  A bidder drove the price up four cents after the last trade but could not get filled. Spot butter is still at a premium to butter futures. The immediate need for butter has been holding the spot price at its current level.


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