Butter and Class III futures softened while NDM attracted strong buying interest, setting the stage for potential market movement ahead of USDA’s June Milk Production report.
Despite recent declines in butter prices and mixed Class III futures, steady cheese volumes and strong seasonal demand suggest potential upside for dairy markets heading into late summer.
Butter pushed to an eight-month high while Class III milk futures slipped on weaker cheese markets, lower feed costs and continued trade uncertainty despite a short-term tariff extension.
Cheese block prices fell nearly five cents, dragging Class III futures lower, while grains and feeder cattle saw solid gains ahead of the holiday weekend.
Cheese futures slipped while spot prices inched higher, narrowing the gap, as U.S. butter and powder markets held firm despite weaker global auction results.
Cheese markets rebounded sharply as spot prices finally aligned with last week’s futures rally, while USDA crop reports delivered largely neutral news for grains.
Class III milk futures rebounded sharply Friday, with August contracts jumping $0.63 to $18.33 as bargain buying, Midwest heat and active cheese trade lifted the market.
