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

 

Class III Futures

Class III contracts sold off strongly across the board on Tuesday. Jan – Dec contracts settled 3 to 50 cents/cwt lower. This bearish trend continues on relatively strong volume as an estimated 2,470 Class III contracts traded on the Globex platform Tuesday. The market has not shown any signs of support and it is likely that this sell off will continue in the near future.

Class IV Futures

After an extremely bearish spot session for both NFDM and butter Class IV futures started tanking. Jan – Dec contracts settled 36 to 72 cents/cwt lower Tuesday. The NFDM and butter futures markets collapsed after spot. This market looks downright ugly for unhedged dairy farmers.

 

CME Spot

A lone bidder brought the market for cheddar blocks a quarter of cent higher, but no offers were made. One load of NFDM traded at $1.0400 /lb, but sellers brought the market down to $1.0050/lb before the close. Aggressive selling allowed the spot butter market to make the massive 23 cent/lb jump lower. No offers were made in butter.

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

 

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