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Class III futures continued to climb, taking the lead from the spot cheese markets.
After spending the week gradually easing lower, the CME butter market tumbled six cents to close at $2.4650 per pound.
Supported by upward momentum in spot cheese and whey, Class III and cheese futures jumped.
Some recovery in Class III futures has come just in time for the Q1 2025 DRP deadline on Friday.
Dry whey prices remain buoyant, rising to 73 cent per pound.
Whey led the rally in Class III last week and came out of the gate strong with bids this morning, giving Q1 Class III futures contracts an early pop back over $19.50.
What a week in the Class III market, driven by a nice run higher in both CME cheese and whey futures.
It’s not very often that whey takes the lead story, but it’s had main character energy this week.
CME cheddar markets continued yesterday’s climb. Blocks advanced to $1.7000 per pound, adding three cents, while barrels rose to $1.6675, $0.0175 higher.
Today’s spot market showed mostly positive activity, with cheese prices making notable gains.
CME cheese markets continued to lose ground, with both blocks and barrels reaching the lowest levels since April.
Output remains variable across Europe’s largest milk-producing regions. Germany’s production dipped 1.8% year-over-year in September, while output in the Netherlands dropped 2.6%. Production in France, on the other hand, rose 3.2% on the year.
After being on the decline, CME cheese prices ended the week on a rise.
USDA reported more milk is coming online ahead of new plant openings, leaving some milk without a home in some regions and leading to a wide price spread of -$3.00 to +$3.00.
The food index increased 0.2% month-over-month with grocery store prices ticking up 0.1% and food away from home prices gaining 0.2%.