Class III Futures
The selloff continued in Class III futures on Wednesday as Dec – Jun contracts fell 9 to 47 cents. Spot cheese made new lows for the year and bearish sentiment has been building every day. I hate to sound like a broken record, but the ship has set sail and it looks like we are still looking at more downward movement in Class III unless factors change. The dairy markets will be closed Thursday and Friday due to the Thanksgiving holiday.
Class IV Futures
A bearish National Dairy Product Sales Report put some downward pressure on NFDM futures Wednesday to slide lower during afternoon trading. Class IV futures were quiet Wednesday, but offers came lower during afternoon trading. With international SMP prices still at a discount to US NFDM there is still more downside potential.
One cheddar block traded at $1.7300/lb and one cheddar barrel traded at $1.6500/lb. Offers in both the block and barrel allowed the markets to settle lower than the last trade. Six loads of NFDM traded at unchanged. One load of butter traded at $1.9700/lb.
Disclaimer: The risk of loss in trading futures and options can be substantial. Past performance is not indicative of future results.