Class III Futures
Support came early on Wednesday and Class III contracts were green across the screen, but as offers for cheddar barrels were posted in the spot market, the Class III market began to fall apart. Jan – June 2015 contracts settled 8¢/cwt lower to 5¢/cwt higher. The Q1 contract average increased slightly, but the remainder of 2015 slid somewhat lower. Cheese futures settled a bit higher in Q1, but on very light volume. Overall sentiment in the market remains bearish, but we are experiencing a soft landing after Monday’s massive selloff.
Class IV Futures
Strength in front month butter boosted Class IV futures higher Wednesday. Dec. 2014 – March 2015 contracts settled 6¢/cwt to 35¢/cwt higher. Expanded limits allowed the December butter contract to rally and settled 9¢/lb. higher. The Jan. 2015 contract settled limit up to $1.7775/lb. (UP $0.0500/lb). NFDM future pushed higher in the first half of 2015, but on only a handful of trades.
Wednesday was a very quiet day at the CME spot market. No markets were made for cheddar blocks. Cheddar barrels were offered down 3/4 of a penny, but no bids were made. Lower bids were posted for NFDM loads, but no offers came out. Butter had a silent session with no bids or offers.
Disclaimer: The risk of loss in trading futures and options can be substantial. Past performance is not indicative of future results.