Class III Futures
The selloff continued Friday as Class III contracts settled 5 to 26 cents lower Jan – Dec. The Jan – Jun contract average settled at $15.68/cwt (DOWN $0.19). The Class III market seems to be grinding lower and lower searching for any sign of support. Unhedged producers are in for a rude awakening as we turn over the calendar as the market continues to make huge steps downward.
Class IV Futures
Both butter and NFDM futures slid lower Friday dragging the Class IV market along with them. The Jan butter contract settled at $1.7350/lb (DOWN $0.0150//lb). Jan NFDM settled at $1.22125/lb (DOWN $0.00875/lb). US NFDM is still holding at a premium to the international market, but we should see those market converge over the next few months.
It was a silent day in spot cheese. The block and barrel weekly averages were down 4.0% and 5.2% vs. last week respectively. NFDM was offered slightly lower, but bids did not come up enough to see a trade. The weekly average price for NFDM was down 1.0% vs. last week. Offers above the market were presented during the butter session, but sellers were not eager enough to bring the market lower. The weekly average price for butter was down 2.0% vs. last week.
Disclaimer: The risk of loss in trading futures and options can be substantial. Past performance is not indicative of future results.