Butter futures recovered much of their losses from yesterday with the help of today’s increase at the spot session. This was a surprising move after spots fell apart yesterday, leading to limit-down trading for multiple futures contracts. Even with blocks trading higher on the day, Class III saw more red, leading some to wonder if the block market will test $1.60 again. Q4 Class III found itself in new lows today, at one point trading below $17.60 as a pack.
The CME spot markets finished mostly higher Thursday. Butter recovered a bit after yesterday’s plunge, climbing 3.5¢ to $2.085 per pound. No lots changed hands. Blocks gained 1.5¢ to close at $1.775 per pound, with three loads trading. Barrels were the lone decliner, dipping to $1.78, a half-cent loss. Whey ticked up a half-cent to 55.5¢ per pound on three lots, while NDM rose a half cent to $1.26, with one lot trading.
Spot milk volume in the Midwest is light as production declines seasonally and Class I demand increases. USDA reported prices at a midpoint of $1 per hundredweight over class, down from +$1.38 last week and +$1.25 last year, but up from +13¢ on the five-year average. Cream is less easily obtained this week, pushing multiples higher. USDA pegged Class II multiples in the Central region at 130 compared to 129 last week, 135 in 2024 and 140 on the five-year average.
For the week ending Aug. 16, slaughter rates were just slightly ahead of prior-year levels at 51,600 head. Culling dropped in the West (-20.5%) and Mid-Atlantic (-7.5%), but increased in the South (+10.0%), Midwest (+5.8%) and Northwest (+1.6%).
