It only took seven sessions for CME spot blocks to jump 16 cents. Spot prices landed today at the highest level since mid-June and closer to the top end of the recent $1.60-$1.90 trading range. Cheese futures moved mostly higher but seemed to brush off some of the spot market strength. Exports continue to support prices, with the US remaining the cheapest cheese in the world and reaching record highs in June. At the same time, export competitiveness likely caps how high spot prices can run in the near term.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets climbed to levels last seen in June following the news of healthy export numbers. Spot blocks advanced to $1.8025 per pound, up $0.0225, while barrels jumped four cents to $1.7900. Five lots of blocks changed hands. Butter gave up some of yesterday’s gains, down $0.0225 to $2.4400 per pound, with three loads exchanged. Spot NDM shed a half cent to close at $1.2800 per pound. At today’s GlobalDairyTrade auction, milk powders went in the opposite direction. SMP ticked up 0.7% to $1.27 per pound and WMP climbed 2.1% to $1.82.
- Competitive global pricing continued to drive US cheese and butter exports in June. Outbound cheese volume hit a new record high of 115.1 million pounds, up 34% year-over-year. Butter exports totaled 14.1 million pounds, 100% higher versus 2024. While dry whey also climbed (up 20% to 38.3 million pounds), NDM+SMP volume slipped to 131.1 million pounds, down 2% on the year.
- According to USDA’s June Dairy Products report, combined NDM+SMP production totaled 193.7 million pounds, down 1.4% (-2.7 million pounds) year-over-year. Cheese and butter output surpassed prior-year levels. Total cheese production reached 1.203 billion pounds, up 4.2% (+48.4 million pounds), while butter totaled 185.5 million pounds, up 10.4% (+17.5 million pounds).
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