Tumultuous Week to End Volatile July

Class III futures posted a positive weekly close with the August contract up 18 cents and September gaining 42, an impressive feat seeing Wednesday and Thursday’s losses totaled $1.00 and 91 cents, respectively. This leaves a tail on the charts for these contracts with a break off the early week high, but the oversold nature of the markets and the fact $20.00 held on the continuous second month chart is encouraging.  Spot cheese had an equally wild week, gaining 3.6250 cents in Friday’s trade, but dropping 3.1250 cents on the week to $1.88375/lb, the lowest weekly close in 2022. Things were quieter for Class IV, which saw its August contract up 34 cents this week to close at $24.81, as that market tries to re-establish an upswing after a moderate selloff in recent weeks.

• For the month of July, August Class III futures fell $2.41 cwt, while spot cheese plummeted 31.1250 cents
• Within the Class IV market, the month of July saw the August contract fall $0.42 cwt, while spot butter dropped half a cent
• Attention will shift to the September contracts on the rolling second month charts next week. It will be important for Class III support to hold at $20.00
• Spot butter has strung together nine weeks of trade between $2.90/lb and $3.00/lb