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

 

Class III Futures

The Class III market continued to grind lower Monday. The Jan – June contract average settled at $15.40/cwt (DOWN $0.28/cwt).  The March contract made a fresh low by settling at $14.95/cwt (DOWN $0.43/cwt). This is the first dip below the $15.00 handle seen this year. Analysts are expecting to see some short term signs of support before the end of the year as the market looks more and more attractive for buy-side hedgers. Having said that, the overtones of bearishness could still send 2015 contracts significantly lower.

 

Class IV Futures

Both butter and NFDM futures slid lower Monday, but very little of the sell-off spilled over into the Class IV market.  The Jan – Jun contract average in NFDM futures settled at $1.1833/lb (DOWN $0.0237/lb). The global NFDM/SMP market has been very bearish over the past few months and this trend should continue in the near future.

 

CME Spot

Cheddar blocks settled half of a penny higher after a lone bidder moved the market higher. Bids moved cheddar barrels 6.75 cents/lb higher, but no offers were made. NFDM was offered down to $1.0600/lb, but buyers were not eager enough to take

any loads at that price. Spot butter was offered 5 cents lower and no bids were posted.

 

CLICK HERE for HighGround Dairy’s December Milk & Feed Market Update

 

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