Class III futures started off the new year with a pop this morning. But, spot cheese prices were only marginally higher, causing Class III futures to retreat from the peak. Prices still ended in positive territory. In the butter space, contacts reported that cream was widely available over the holiday weeks. Spot butter dipped today, but butter futures were undeterred, with 1H 2025 contracts on the rise.
Today’s Highlights
- CME butter trading volume was relatively heavy, with 11 lots changing hands. But the spot price didn’t change much, easing by a half cent to settle at $2.5450 per pound. Spot NDM also gave up a half cent, decreasing to $1.3700 per pound, with six lots trading. Blocks ticked up to $1.9125 per pound, adding a quarter cent, with one lot exchanged. Barrels were unchanged, with no trades.
- Spot milk and cream prices started off the year seasonally low. USDA pegged spot milk in the Upper Midwest at a midpoint of $3.75 per hundredweight under class compared to -$3.25 the previous week, -$4.75 last year and -$5.75 on the five-year average. Cream multiples in the region dropped to 110, down from 122 last week and 113 in 2024, but on par with the five-year average.
- CME Group announced that dairy markets will close early, suspending trading from noon until 5 p.m. on January 9, to honor President Jimmy Carter.
