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


Class III Futures

After being pummeled on Monday and Tuesday Class III front months faintly recovered on light volume. Q1 contracts settled 5 to 17 cents/cwt higher. May – Mar 2016 contracts continued to sell-off Wednesday and settled 2 to 22 cents/cwt lower. Wednesday’s National Dairy Product Sales Report confirmed the sell-off that the market received this week by showing lower sales prices in all dairy commodities.


Class IV Futures

Butter and NFDM futures continued to collapse after Wednesday’s spot session. This one-two punch has sent Class IV contracts into the lower $14.00/cwt range. Domestic NFDM prices are now on par with the international market. Butter has been seeing some aggressive selling in the spot market over the last several days, but it is unlikely that we will see a huge decline in the market until inventories are built back up to normal levels.


CME Spot

Barrel cheddar moved a penny higher Wednesday with just one bid and no offers. Two loads of NFDM traded at $0.9950/lb and the market settled there. One load of butter traded at $1.5500/lb after a strong seller presence and the market closed out with an unfilled bid at $1.5500/lb.

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