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

 

Class III Futures

2015 contracts continued to find support Thursday settling 3 to 48 cents/cwt higher. This rebound in Class III futures came on decent volume as an estimated 2,583 contracts traded on the Globex platform. The market had been indicating that it was over sold over the past few days and Thursday’s move is seen as a corrective rally. As we begin pricing the January contract analysts will have their eyes on the spot cheese market to see if we are in for yet another large downgrade to start the New Year.

 

Class IV Futures

Buying interest in the spot butter market gave the support that it had been searching for over the last couple of days. However the persistent bearishness in the NFDM market did not allow for a rally in Class IV futures. The Class IV market settled 4 to 16 cents/cwt lower in Q1 with very light trading volume. H1 contracts still remain in the $14.16 - $14.85/cwt range.

 

CME Spot

After a silent spot cheese session three loads of NFDM traded half a penny below Wednesday’s settlement price.  The NFDM session closed with two more bids for loads at that price. The butter session rose 4.5 cents/lb on bids alone as no offers were posted.

 

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