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Futures

Class III Futures Soar Above $20 per Hundredweight

2024-12-12

Today witnessed a remarkable surge in Class III markets, as January – March futures all settled above the $20.00 per hundredweight mark. This timing couldn't be more crucial, given that the Q1 DRP deadline is just around the corner. For those seeking additional coverage, a close examination of today's values is highly recommended.

Unlock the Potential of Class III Markets with Q1 DRP

January – March Futures: A Milestone Reached

Today, January – March futures achieved a significant milestone by settling above $20.00 per hundredweight. This upward trend indicates a positive momentum in the market and sets the stage for potential growth in the coming months. It showcases the strength and stability of the Class III market during this period.

The settlement above $20.00 per hundredweight is not only a testament to the market's performance but also provides valuable insights for investors and market participants. It serves as a benchmark for future trading activities and helps in making informed decisions.

Q1 DRP Deadline: A Ticking Time Bomb

The Q1 DRP deadline is fast approaching, adding an element of urgency to the market. This deadline holds significant importance as it determines certain aspects of the market's operations and financials. Market participants need to be vigilant and ensure that they are well-prepared to meet the deadline.

With the deadline just a day away, there is a sense of anticipation and excitement in the air. It will be interesting to see how the market reacts and what measures are taken to ensure compliance. The Q1 DRP deadline serves as a catalyst for market activity and can have a profound impact on the future of the Class III market.

CME Spot Dry Whey: A New High

CME spot dry whey reached another milestone today, adding $0.0175 to reach $0.7675 per pound. This is the highest level since February 2022, indicating a strong demand and upward trend in the dry whey market. The increase in spot dry whey prices is a positive sign for producers and suppliers, as it reflects a healthy market environment.

The rise in CME spot dry whey prices is also likely to have a ripple effect on other related markets. It can influence the pricing of other dairy products and impact the overall supply and demand dynamics in the dairy industry. Market participants need to closely monitor these developments and adjust their strategies accordingly.

Spot Cheddar Prices: On the Rise

Spot cheddar prices also witnessed a significant increase today. Blocks settled at $1.7875 per pound, $0.0375 higher, while barrels finished at $1.7300 per pound, a 5.5-cent gain. This upward movement in spot cheddar prices is a clear indication of the market's strength and demand for this dairy product.

The increase in spot cheddar prices can be attributed to various factors such as increased consumer demand, supply constraints, and market speculation. It is important for market participants to understand these factors and their impact on the market to make informed trading decisions.

Fluid Bottling Demands and Spot Milk Supplies

Reports suggest that fluid bottling demands have eased, leading to a loosening of spot milk supplies in the Upper Midwest. USDA reported spot prices in the region at $0.25 per hundredweight under class, down from +$0.50 last week but up from -$1.50 last year and the five-year average of -$1.30. This indicates a shift in the market dynamics and the need for careful monitoring of milk supplies.

While the easing of fluid bottling demands may have an impact on spot milk supplies in the short term, it is important to consider the long-term trends and factors that influence the dairy market. Market participants need to adapt to these changes and find ways to optimize their operations and maximize their profits.

Cream Availability and Midwest Multiples

Cream is readily available in the region, bringing Midwest multiples to 124 this week, down from 125 last week and the five-year average of 128, but in line with last year's 124. This indicates a balanced supply and demand situation for cream in the Midwest region. Market participants need to keep a close eye on cream availability and its impact on the overall dairy market.

The stability of cream availability and Midwest multiples is a positive sign for the dairy industry. It provides a certain level of predictability and helps in planning and decision-making. Market participants can use this information to assess the market conditions and make strategic moves.

In the dynamic world of financial markets, understanding the trajectory of Nasdaq futures is crucial. ForexLive.com's AI-driven prediction system offers valuable insights into the bearish bias currently plaguing the Nasdaq. With a score of -6 on a scale ranging from -10 to +10, where -10 indicates extreme bearish confidence and +10 represents extreme bullish confidence, this analysis provides traders with a clear understanding of the market's direction.

Unlock the Secrets of Nasdaq's Bearish Momentum with ForexLive.com's AI

Analysis: Navigating Key Levels with AI Insights

Yesterday's VWAP (21,694) and Value Area Low (21,687) have become significant barriers as Nasdaq futures continue to trade firmly below them. This indicates the dominance of sellers in the market. A critical support cluster exists between 21,570–21,600, formed by the naked Value Area High (VAH) from two and four days ago. While this zone may act as a potential magnet for price, the absence of a buyer response could lead to a breakdown toward 21,474. Additionally, the 21,500 handle serves as a psychological level where market makers often attempt to trap short-sellers or induce long liquidation.

ForexLive.com's AI scans real-time order flow to deliver actionable insights. Cumulative Delta shows sustained negative readings, highlighting the persistent seller dominance throughout the session. Delta SL Values near current levels are weak and positive, suggesting limited buyer activity and reinforcing the bearish case. Volume spikes coinciding with negative delta indicate aggressive selling pressure rather than absorption by buyers.

Price Action Behavior: Confirming the Bearish Bias

Multiple attempts to reclaim key resistance levels, such as 21,687, have been unsuccessful, with red candles closing near their lows. This further supports the bearish sentiment. The cluster at 21,570–21,600 may temporarily slow the decline, but the lack of positive delta or volume-based buying signals reduces the likelihood of a sustained reversal at this stage.

The price action clearly indicates the strength of the bearish trend. Traders need to be cautious and keep a close eye on these key levels as the market continues to evolve.

AI-Powered Edge: Why This Analysis Stands Out

ForexLive.com's AI stands out by focusing on real-time data. It analyzes order flow and volumetric stats such as delta imbalances and cumulative delta shifts to capture market sentiment shifts early. By integrating historical levels, such as yesterday's and multi-day naked levels, the AI can pinpoint high-probability zones for price reactions, like the current focus on 21,570–21,600. Additionally, the AI adapts to market context by accounting for psychological levels, liquidity traps, and dynamic market-maker strategies to refine predictions.

This unique approach gives traders an edge in navigating the volatile Nasdaq futures market. With real-time, actionable insights, ForexLive.com's AI helps traders make more informed decisions and stay ahead of the market.

Conclusion: Navigating the Nasdaq Bearish Momentum With AI Assistance

Nasdaq futures are currently under firm bearish control, with sellers targeting the 21,570–21,474 zone. A decisive breakdown below this area could lead to accelerated losses. However, a reclaim of 21,600 with positive delta and strong volume might spark a retracement toward 21,687.

Trading in Nasdaq always comes with risks. It is important to invest and trade at your own risk. ForexLive.com provides additional views and analysis to help traders make more informed decisions. Stay tuned to ForexLive.com for the latest updates and insights.

In November, commodity trading advisors witnessed a remarkable rebound. Several of these funds achieved significant gains during the month. Remarkably, there was at least one managed futures fund that managed to return to profitability. These computer-driven funds have a diverse investment approach, engaging in a wide range of strategies and investing in various commodities. Their design typically allows them to ride short-term, medium-term, or long-term trends. Most...

Unlock the Potential of Commodity Trading Advisors in November

Investment Strategies of Commodity Trading Advisors

Commodity trading advisors employ a variety of investment strategies. They carefully analyze market trends and use advanced algorithms to identify potential opportunities. These strategies range from short-term trading to long-term investing, allowing them to adapt to different market conditions. By diversifying their investments across various commodities, these advisors aim to minimize risks and maximize returns. For example, they may invest in gold to hedge against inflation or in crude oil to take advantage of global economic trends.

The Role of Managed Futures Funds

Managed futures funds play a crucial role in commodity trading. These funds are driven by computer algorithms that analyze market data in real-time. They can quickly respond to market changes and execute trades accordingly. Managed futures funds offer investors the opportunity to access a wide range of commodities and trading strategies that they may not be able to replicate on their own. Additionally, these funds are designed to provide diversification and reduce risk. For instance, during periods of market volatility, managed futures funds can help investors protect their portfolios by taking short positions or investing in alternative assets.

Benefits of Commodity Trading Advisors

Commodity trading advisors offer several benefits to investors. Firstly, they have extensive experience and expertise in the commodity markets. They stay updated with the latest market trends and news, enabling them to make informed investment decisions. Secondly, these advisors provide professional portfolio management services. They carefully allocate assets and manage risks to ensure the best possible returns for their clients. Moreover, commodity trading advisors offer transparency and accountability. They provide regular reports and updates to their clients, keeping them informed about the performance of their investments. For example, a client can easily track the performance of their commodity trading advisor through online platforms or regular meetings.