Dairy futures traded lower again today on the heels of yesterday’s Milk Production report showing milk flows increasing at the strongest rate in four years. Spot block cheese dropped to a three-week low, while butter prices dipped to the lowest level since 2021. This weighed on Class III and Class IV markets, with Q4 futures making new year-to-date lows for both. USDA’s Cold Storage report was released after markets closed for the weekend, so those results will likely set the tone for trading next week.
Today’s Highlights:
It was red almost across the board today at the CME. Butter was down $0.0050 to settle at $2.235, the lowest price since December 2021. Spot blocks slipped 3¢ to $1.75 per pound, with six lots changing hands. Barrels dropped to $1.76, shedding a nickel with no trades. Nonfat dry milk held at $1.26 with six lots traded, while dry whey gave up 1.5¢ and closed at $0.5550 per pound.
Class III and IV futures also dropped, with Q4 Class III slipping to $17.74 per hundredweight, a 14¢ loss. Q4 Class IV declined to $18.04 per hundredweight, easing by 6¢. Q4 butter futures tumbled $0.0413 to $2.3828 per pound.
USDA’s July Cold Storage report was surprisingly bullish for butter. Stocks were down on the year and month-over-month at an above-average pace. It was more neutral for cheese, with inventories up versus 2024, but down on the month at a pace that was close to the five-year average.
