Milk Prices
Butter settled at $2.7900 per pound, giving up seven cents to reach the lowest price since March.
CME barrels plunged even further off recent all-time highs, ending today at $2.4275 per pound, $0.1175 lower.
Futures followed spot prices lower today, with Q4 Class III prices settling at $22.45 per hundredweight, 45 cents lower.
Friday’s Milk Production report, which showed there was more milk in August than expected, had a bearish effect on spot blocks and butter.
August milk production was down less-than expected, slipping 0.1% year-over-year.
Spot butter dropped below the $3-per-pound mark for the first time since May.
Barrels continued to rise, reaching $2.6225 per pound and tacking on 5.75 cents to set yet another record-high price.
Supply concerns and rising global prices continued to drive CME barrels higher.
Seasonal demand is providing support to the market. This support may continue for a time as supply has tightened and demand is improving.
Harvest is underway across much of the Midwest, with 9% of the U.S. corn crop now in the bin, ahead of the five-year average of 6%.
The CME barrels market didn’t show signs of slowing its ascent, adding a nickel to reach $2.4850 per pound. That’s the highest price since November 2020.
Spot cheese was mixed, with blocks dipping to $2.2800 per pound and losing 3.5 cents, while barrels rose to $2.4350 per pound, tacking on five cents.
EU cheese prices remain the most expensive in the global market place at $2.42 per pound,
CME cheese jumped to prices not seen since May 2022.
While CME cheese advanced just slightly, Class III futures shot higher.
CME cheese led the charge today, with blocks jumping to $2.2700 per pound, adding on four cents to reach a price not seen since June 2022.
Midwest spot prices are $1.75 above class, up from +$1.25 last week and well ahead of the five-year average of -$0.25 at this time
The past few weeks have shown us that the markets are becoming increasingly volatile. The months of September and October will see that volatility continue. Seasonal buying has increased fueled by the potential for tighter inventory.
It was green across the board today in Chicago, with CME cheese rebounding and finishing strong.
Class III futures followed CME cheese prices higher. Q4 contracts prices lifted to $22.16 per hundredweight, up 28 cents.
CME cheese took a tumble today, with barrels dropping to $2.1250 per pound
Butter continued its post-Cold Storage climb, adding $0.0225 to reach a new year-to-date high of $3.1975 per pound.
After ending last week with a tumble, CME cheese markets began this week with a surge, thanks in large part to USDA’s bullish Cold Storage report.
CME cheese markets tumbled well off recent highs ahead of USDA’s July Cold Storage report.
Class III futures closed in the red, with Q4 settling at $21.23 per hundredweight, down 46 cents.
Butter and cheese prices break out of the trading ranges to reach prices not seen in a while. Fall and holiday demand has kicked into gear as buyers look to Fall and holiday demand.
After last week’s fireworks, CME markets got off to a relatively quiet start this week.
Butter had the third-heaviest trade week in history, with 103 loads exchanged.
Spot butter trades reached a new record, with 51 loads changing hands – the heaviest single day since daily trading began in 2006.
After spending the last two days jumping to new year-to-date highs, CME cheese markets slowed their climb today.