Butter Market News
Explore the latest butter production news from Dairy Herd Management. Covering butter export trends, CME price shifts, processing innovations, and dairy production strategies to help producers maximize milk component value. View the latest butter CME prices.
The softness in butter continues to line up with anecdotal reports that butterfat levels are high and cream is available
Class III futures started the day 10-20 cents lower in the nearby contracts before a positive spot cheese auction brought them up on the day.
The CME butter market rebounded off its recent lows, climbing to $2.4300 per pound, gaining a nickel.
Much like the Philadelphia Eagles’ dominant Super Bowl victory, the cheese market put up a strong performance today, with blocks and barrels climbing higher in the spot session.
Class III futures tumbled today, erasing the week’s stronger activity following a weaker spot session.
U.S. cheese exports surged ahead in December, totaling 96.7 million pounds.
Class III futures were on a roller coaster with back-and-forth tariff news.
Ramped up conversations around possible 25% tariffs on Mexico and Canada plus 10% tariffs on Chinese goods sent the cheese market sharply lower last night and weakness continued through today’s session.
Dairy cow slaughter rates are well above prior-year levels. For the week ending January 18, culling totaled 58,000 head, up 13.5% on the year.
Class III futures were reluctant to follow several days of green with further higher price action, and showed modest declines or gains depending on the month.
Class III milk futures continued their strong momentum today, with blocks and barrels both posting gains with no offers appearing during the cheese session.
It’s pretty safe to say that the Class III market direction remains unclear.
The market appears to be grappling with uncertainty around Class III prices, particularly as we approach a critical day tomorrow with the release of the Milk Production and Cold Storage reports.
After the three-day weekend, spot cheese prices reacted with a series of offers that pushed the entire Class III forward curve downward.
And then there was quiet. After a week of see-saw action in the spot cheese market, Friday’s CME cheddar prices finished unchanged
The volatile trading week for cheese continued today, with both blocks and barrels jumping higher. Class III prices responded positively by climbing through the first five months of the year.
Class III markets took a breather after yesterday’s extreme lower move to check in with spot markets.
Class III futures rose on the heels of CME cheese, with February and March contracts settling at $20.60 and $20.27 per hundredweight, up 33 and 31 cents, respectively.
It was a rough day for dairy producer margins, as milk prices came under pressure while grain prices rallied.
Despite the decline in CME blocks, nearby Class III contracts ticked higher. February and March futures rose to $20.92 and $20.59 per hundredweight, tacking on six and eight cents, respectively.
Looking back on the past year, we see price improvements in all categories.
The Class III market ended the week on a positive note, settling higher through most of the first half.
Class III futures started off the new year with a pop this morning.
On the heels of the CME cheese jump, the January Class III contract climbed to $20.43 per hundredweight, tacking on 31 cents.
Following a slow performance in the spot market yesterday, today’s trading saw a bit more activity ahead of the early market close.
Class III futures turned red today on the heels of a quiet spot cheese session.
Today’s spot market witnessed another solid performance on the cheese front, with prices rising to the highest levels in more than a month.
Class III futures continued to climb, taking the lead from the spot cheese markets.
Supported by upward momentum in spot cheese and whey, Class III and cheese futures jumped.
Some recovery in Class III futures has come just in time for the Q1 2025 DRP deadline on Friday.