Slight weakness in the Class III milk market once again played itself out as product markets leaned a bit negative during the spot session. Barrels softened another five cents per pound as offers were consistent throughout the session. Block cheese found a price that worked for sellers and buyers as eight loads were exchanged. Dairy markets did start to work themselves back to even territory later in the day as, once again, rhetoric around tariffs began to ease with Mexico. Given our current price point on cheese, positive discussions are welcomed, as the US is well positioned compared to the world to get the export nod.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets continued yesterday’s movements, as spot blocks rose to $1.6275 per pound, $0.0125 higher, while barrels dropped to $1.6550, shedding a nickel. Eight lots of blocks and three of barrels changed hands. Trading was heavy in CME butter, with 27 loads exchanged. The spot price also ticked higher, up $0.0175 to $2.3000 per pound. After yesterday’s pause, spot NDM resumed its journey lower, closing at $1.1675 per pound, a loss of $0.0125, with two lots exchanged.
- Spot milk in the Upper Midwest remains variable depending on the region and the weather. USDA pegged prices at a midpoint of $0.75 per hundredweight under class. That compares to -$1.25 last week and last year and -$2.63 on the five-year average. Cream is still flowing freely, with multiples unchanged on the week at 104, far below 124 in 2024 and 123 on the five-year average.
- U.S. cheese exports got off to a strong start in 2025, with outbound volumes totaling 103 million pounds in January, up 22% (+18 million pounds) on the year. That was the largest monthly export total since May 2024. Butter exports were also up on the year. But high milk powder prices and low supply hurt demand in the NDM space. Exports reached 103 million pounds, down 20% (-26 million pounds) versus 2024 and the lowest monthly total since June 2019.
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