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

Class III Futures

Thursday’s class III market was unimpressed by the 2 cent rise in cheddar blocks during the spot market. A mild sell-off ensued and Oct – Mar contracts settled 5 to 11 cents lower. The second half of 2015 posted mixed results settling 4 cents lower to 4 cents higher. Volume on the Globex platform was light as an estimated 1,079 contracts traded Thursday.

Class IV Futures

Due to expanded limits Oct butter took an 8.975 cent hit Wednesday. As we roll Oct off the calendar the forward curve looks very flat in butter with contracts trading in a 7.5 range through the end of 2015. There were only a handful of trades in class IV on Thursday, but Oct and Nov sold off 34 and 26 cents respectively.

CME Spot

Bids brought the market for cheddar blocks higher Thursday, but no offers were made. No bids or offers were posted for cheddar barrels. NFDM moved a tick higher with just one bid. Six loads of butter traded as the market climbed four cents.

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