Class III Futures Move Almost One Dollar Higher in Five Days
By Mike North, Commodity Risk Management
While Monday may have been an extra vacation day for CME spot traders of blocks and barrels they came back with a vengeance on Tuesday. Five loads of barrels traded after moving prices 5.5 cents higher. Blocks traded four loads and markets moving 5 cents higher.
While cheese trade was robust, butter trade lacked follow through from Monday’s strong performance. In fact, prices remained unchanged. Nothing traded and a bid and offer rested on either side of the market prices finished at $2.30.
Looking at Class III markets, strength defined the morning as prices started up 25 cents. Those prices grew even further throughout the spot session. At one point, February was as high as 45 cents higher at a price of $17.59 per CWT. Late in the day however, prices settled back to a 20 to 30 cent higher price point in the months of February and March. April and May finished up about 10 - 15 cents, and the balance of the year up about a nickel.
For the month of February, this marks the third successive day of higher price action, with the market moving 99 cents from the January 5 low to Tuesday’s high.
Listen to Mike daily on DairyLine Radio.