Market recap: Futures start strong but end lower

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

Class III Futures 
Friday’s Class III market rose higher after receiving more support from the spot cheese market, but it fell off the highs to settle slightly lower in the front months. Volume on the Globex platform was light with an estimated 841 trades. Cheese and whey futures were very flat with very little volume. Although the Class III Aug – Oct contracts sold off Friday, the price levels continue to trade well within their technical ranges.  

 

Class IV Futures 
Volume in Friday’s Class IV market was extremely low. Some of the Q4 and 2015 contracts sold off slightly, but there were no movements that indicated a major shift or trend. Butter and NFDM futures received a bit of a correction, but with the light volume in both of those markets it is hard to say that there are any trends developing there.  

 

CME Spot 
Cheese buyers were very active again Friday as steady bids in both cheddar blocks and barrels came at the open. Six cheddar blocks traded at prices ranging from $2.0275 to $2.0500. Five cheddar barrels traded at prices ranging from $2.0700 to $2.0750. Spot NFDM sellers were offering product but could not find any buyers. NFDM settle two cents lower with no bids. The spot butter session had a strong buyer presence as four loads traded at prices ranging from $2.4600 to 2.4800. Weekly averages showed us a bounce back to the $2 level in spot cheese and 3.2 cent increase in the spot butter price. 

  

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



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