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The cash cheese market's performance had a significant influence on futures. Despite strong buy-side interest in Class III futures before the cash market, futures were pressured lower. The first quarter settled under $20.00 per cwt, yet it remains at elevated levels compared to just 10 trading sessions ago. Butter prices played a crucial role in affecting Class IV futures as sellers pushed the cash market to lows not seen since December 2023. Both Class III and Class IV prices still present good opportunities for last-day Q1 DRP coverage.

Today's Market Highlights

After a gradual easing lower throughout the week, the CME butter market witnessed a significant drop of six cents, closing at $2.4650 per pound. A total of eight lots were traded. Spot dry whey continued its upward trend, getting closer to the 80-cent mark and settling at $0.7925 per pound, with a 2.5-cent increase. Five lots were traded in this market. Blocks also showed an upward movement, adding $0.0125 to reach $1.8000 per pound, with two loads changing hands. However, barrels eased slightly to $1.7275 per pound, down a quarter cent, with one lot exchanged.Even though spot blocks and whey were climbing higher, Class III futures declined. The Q1 contracts slipped to $19.88 per hundredweight, shedding 27 cents. Class IV also experienced a significant drop, settling down 20 cents at $20.60 per hundredweight.Corn futures managed to shake off the impact of USDA's bullish WASDE report earlier in the week. December futures eased to $4.3000 per bushel, down $0.0175 on the last day of the contract. March slipped to $4.4200 per bushel, 1.5 cents lower. Soybeans also followed a downward trend. The January contract decreased to $9.8825 per bushel, giving up 7.5 cents.In conclusion, the various markets showed diverse movements. The cash cheese market's performance had a ripple effect on futures and other related markets. Traders and investors need to closely monitor these trends to make informed decisions.