Cheese prices soar while butter dips – what’s driving these market shifts? Discover how today’s CME results could impact your farm’s bottom line and what experts say about the road ahead.
Summary:
Today’s dairy market report shows some changes. Cheese prices have increased, with both Cheddar Block and Barrel prices at $1.8200 per pound. This means more people are buying cheese. Butter prices have gone down by one cent to $2.5125 per pound, but they’re still good for farmers. The cost of corn feed is rising, at $4.8425 per bushel, which might make feeding cows more expensive. Luckily, soybean prices have dropped a bit, which might help. Milk prices for February look steady, with Class III at $18.99 and Class IV at $20.65 per hundred pounds. This is good news, but farmers should watch how much it costs to make milk. The dairy market keeps changing, so planning is essential to handle these price ups and downs.
Key Takeaways:
- Cheese prices see a significant increase, indicating higher consumer demand.
- Butter prices dip slightly but remain at profitable levels for dairy farmers.
- Potential rise feed costs due to higher corn prices may impact farmers’ expenses.
- Stability in milk prices offers some financial comfort to producers.
- Farmers need to manage resources strategically amidst fluctuating market dynamics.
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 2.5125 | -1.00 | 4 | 4 | 0 |
| Cheddar Block | 1.8200 | +4.50 | 3 | 0 | 0 |
| Cheddar Barrel | 1.8200 | +1.00 | 2 | 2 | 4 |
| NDM Grade A | 1.3525 | NC | 0 | 1 | 1 |
| Dry Whey | 0.7000 | NC | 0 | 5 | 1 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Tue | Wed | Thur | Current Avg. | Prior Week Avg. | Weekly Volume | |
| Butter | 2.5350 | 2.5225 | 2.5125 | 2.5233 | 2.5640 | 10 |
| Cheddar Block | 1.7800 | 1.7750 | 1.8200 | 1.7917 | 1.8825 | 8 |
| Cheddar Barrel | 1.8500 | 1.8100 | 1.8200 | 1.8267 | 1.8740 | 7 |
| NDM Grade A | 1.3475 | 1.3525 | 1.3525 | 1.3508 | 1.3680 | 3 |
| Dry Whey | 0.7375 | 0.7000 | 0.7000 | 0.7125 | 0.7380 | 4 |
Today’s dairy market report (January 23, 2025) shows significant changes. Cheese prices went up, but butter prices went down a bit. This mix of good and bad news has dairy farmers wondering what’s next.
Cheese Prices on the Rise
Cheese prices are getting a lot of attention today. Cheddar Block prices rose by 4.5 cents to $1.8200 per pound, and Cheddar Barrel prices rose by 1 cent to the same price, $1.8200 per pound. It’s unusual for these prices to match in the dairy market. This jump in cheese prices means more people are buying cheese, which could mean more money for dairy farmers soon. This is a good sign for the cheese business.
Butter Takes a Small Step Back
While cheese prices experienced an upward shift, butter took a slight dip in today’s market. The cost of butter dropped by 1 cent, closing at $2.5125 per pound. Despite this decrease, the price remains favorable for farmers, providing them a steady income stream. The slight drop in butter prices isn’t a big deal. People are still buying a lot of butter, and there isn’t too much extra sitting around. This minor shift is likely just a reflection of the regular ups and downs within the market. With consistent consumer demand and manageable supply levels, this brief decline is not projected to impact the butter market significantly.
Feed Costs Might Go Up
One thing worrying dairy farmers is the possible rise in feed costs. The corn price for March is now $4.8425 per bushel, which means feeding cows could be pricier. However, a slight drop in soybean prices provides hope and might help balance some of these costs. Dairy farmers must plan well to handle these changes and stay profitable during these ups and downs.
What This Means for Milk Prices
The price farmers might get for their milk in February appears satisfactory, with Class III milk (used for cheese) priced at $18.99 per hundred pounds and Class IV milk (used for butter and powder) at $20.65. While these prices are not at their peak, they remain profitable for many farmers. These prices and the higher cheese prices mean farmers should be okay for now. But they need to watch how much milk they’re making and how much it costs to feed their cows.
Key Points to Remember:
- Cheddar cheese prices increased significantly, which is good news for farmers.
- Butter prices went down slightly, but they are still pretty good.
- Corn prices are going up, which might make feeding cows more expensive for farmers.
- Milk prices look steady for the near future, indicating a balanced market.
The dairy market is constantly changing. Farmers must consider production costs, consumer demand, and global events. They must also manage their finances and create plans to handle price changes.
The Bottom Line
Here’s the message for dairy farmers: Cheese prices are good news. Keep track of your farm costs. The following weeks will show if these price changes will last. We at The Bullvine want to help you stay informed. How are these changes affecting your farm? Share in the comments below. Let’s talk about what’s happening in the dairy world!
Learn more:
- Cheese and Butter Prices Plummet After Holiday Weekend: Market Struggles to Recover
- Dairy Market Analysis: Milk Futures Hold Steady, Spot Cheese Gains, and Butter Slips
- Will the Surge in Milk Prices Last? Analyzing Trends and Future Outlook
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