What is Class III milk?
Class III milk, according to the USDA, is “used in the manufacture of cream cheese and other spreadable cheeses, and hard cheese of types that may be shredded, grated, or crumbled. It also includes plastic cream, anhydrous milkfat, and butteroil.”
How much milk is included in a Class III milk futures contract?
According to the Chicago Mercantile Exchange, each Class III milk futures contract contains 200,000 pounds of milk or 2,000 hundredweight.
Can you trade futures on Class I, Class II and Class IV milk?
Yes, futures contracts are available for Class I, Class II and Class IV milk, all of which serve different purposes.