Thursday’s CME Dairy Market Recap

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Class III Futures
Cheddar barrels made their way back to the spot cheese market on Thursday causing the market to slide down to $1.7000/lb. before being bid back up to $1.7500/lb (DOWN 16.5¢/lb.). This triggered a sell-off in Class III, but the sell-off was short lived. Contracts bounced back settling 3¢ to 15¢ higher Nov – Mar. Perhaps the most interesting thing to note from Thursday’s activity is that the second contract (Dec) settled above the current cash value. Current cash value of Class III is approximately $18.27/cwt. The Dec contract settled at $18.69/cwt. This is very rare and is a bearish signal to the market. Producers should have their fingers on the sell button as chances to lock in reasonable margins for the first half of 2015 could soon slip away.
Class IV Futures
Front-month support in both butter and NFDM futures helped Class IV futures catch a rally on light volume. With spot NFDM falling down to $1.1375/lb (DOWN 4.5¢/lb) during Thursday’s spot market, it is hard to make a bullish case for Class IV. However, short-term support in butter could help contracts hold at their current price levels for a little while longer.
CME Spot
The block/barrel spread was tightened down as cheddar barrels made their way back into the spot cheese market on Thursday. One cheddar block traded at $1.7975/lb. and offered down to $1.7750 before the close. Five cheddar barrels traded at prices ranging from $1.7000/lb. to $1.7500/lb. NFDM saw some buying activity as six loads traded between $1.1700/lb. and $1.1750/lb., but sellers still had their hands full and lowered their offers down to $1.1375 before the close. Spot butter moved two ticks higher with just one bid and no offers.
 
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Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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