FROM THE TRADING DESK:
Dairy futures traded heavily to start the “in-between holidays” week, with over 1,000 Class III contracts changing hands in January and February. Much volume came from the more than 500 January/February spreads executed. The activity left most months comfortably in the red through December 2026. Spot markets remained quiet overall, with the exception of block cheese, which saw 10 loads trade and a slight increase in price. Despite this, futures softened – Class III, cheese and butter contracts remain at a notable premium to spot. Lower weekly sales prints will likely be needed before futures begin to fully incorporate spot market price signals.
Today’s Highlights:
- CME markets remained relatively quiet heading into the final trading days of 2025. CME blocks advanced to $1.3450 per pound, gaining a penny. Spot NDM moved in the opposite direction, down one cent to $1.1700 per pound. Barrels held steady at $1.4000, CME butter was unchanged at $1.4025 and spot dry whey remained at $0.7300. Blocks logged the only trades of the day, with 10 lots changing hands.
- Class III contracts through most of 2026 declined, with Q1 slipping 12 cents to $15.47 per hundredweight. Q1 “all cheese” futures decreased to $1.4907 per pound, $0.0113 lower. Q1 NDM followed spot downward, ending the day at $1.1648 per pound, losing $0.0127.
- Grain futures also dropped to start the week. March corn settled at $4.43 per bushel, down seven cents, while January soybeans shed eight cents to close at $10.50 per bushel.
Today’s Futures and Options Settlements
Chart of the Day
