Class III Futures
The market turned from bullish to bearish Wednesday as Class III futures sold off through the end of the year. The August contract settled at $21.38 (DOWN 0.24). There was very light volume in the market as an estimated 746 contracts were exchanged on the Globex platform. Cheese futures moved slightly lower, decreasing their premium to the spot market. Dry whey futures rallied Wednesday settling 0.5 cent to 1.925 cents higher Sept – Dec.
Class IV Futures
The Class IV market was very quiet again on Wednesday with very few trades. Contracts settled 6 to 15 cents lower in the front months. The bearish trend in butter futures continued as contracts sold off again Wednesday. The Aug – Dec contract average settled at $2.1259 (DOWN 0.0148).
The spot cheese market opened with a bit of buying interest Wednesday as two cheddar blocks traded a penny above Tuesday’s settlement price. Sellers then got a little more aggressive which brought the market down to settle half a penny lower. The butter session was bearish again Wednesday as a lone seller dropped offers lower and lower to bring the market to its settling price 5 1/2 cents lower. Two loads of butter were exchanged at $2.5000 and $2.4800.
Disclaimer: The risk of loss in trading futures and options can be substantial. Past performance is not indicative of futures results.