It was another exciting day for spot butter, with 48 lots trading hands. That brings this week’s volume to 127 loads, the third-highest in the history of the CME. Despite heavy trading activity, prices rose to $2.6350 per pound, tacking on two cents. Cheese prices inched higher today, as well, with blocks settling at $1.9425 per pound, up a half cent, and barrels coming in at $1.9300 per pound, adding four cents.
Class III followed cheese prices higher, with the nearby contract settling at $22.55 per hundredweight, up a penny, and Q4 prices rising to $21.66 per hundredweight, adding 16 cents. Meanwhile, Class IV was mixed, as October futures dipped to $21.06 per hundredweight, down four cents, but Q4 prices advanced to $21.10 per hundredweight, up three cents.
European butter and cheese prices still hold a premium to the rest of the world. EU butter averaged $3.83 per pound this week, compared to $2.87 per pound in New Zealand and $2.62 per pound in the US (prices adjusted for 80% butterfat). Similarly, EU cheese outpaced the rest at $2.52 per pound, compared to $2.13 per pound in NZ and $1.92 per pound in the US.
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