Discover why Class III dairy futures are outpacing Class IV and what it means for your farm. Are you ready to navigate these market shifts? Read on to stay informed.
Let’s start with the basics: spot butter prices have inched closer to the $3.20-per-pound mark, reaching $3.19 per pound. Not too shabby, right? The nonfat dry milk (NDM) market saw a similar uptick, advancing to $1.38 per pound with four lots changing hands. How does this affect your bottom line? It’s all about the upward trend in demand and prices.
“U.S. crop conditions are strong, with 64% of the corn crop in good/excellent condition,” says the USDA. This stability in feed supply is good news for dairy farmers counting on consistent feed prices.
What’s even more intriguing is the performance of Class III futures, which have shot higher. Fourth quarter contracts settled at $22.83 per hundredweight. That’s a 64-cent jump! And guess what? This puts Class III over Class IV, which also saw an increase but only climbed to $22.64 per hundredweight, up 20 cents.
- Spot Butter: $3.19 per pound, up 1.5 cents
- CME NDM: $1.38 per pound, up 1.5 cents
- Cheese Barrels: $2.285 per pound, up 1 cent
- Class III Futures: $22.83 per hundredweight, up 64 cents
- Class IV Futures: $22.64 per hundredweight, up 20 cents
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 3.19 | 1.5 | 0 | 3 | 0 |
| Cheddar Block | 2.27 | NC | 0 | 0 | 0 |
| Cheddar Barrel | 2.285 | 1 | 0 | 1 | 0 |
| NDM Grade A | 1.38 | 1.5 | 4 | 4 | 2 |
| Dry Whey | 0.59 | 0.25 | 3 | 2 | 2 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Mon | Current Avg. | Prior Week Avg. | Weekly Volume | |
| Butter | 3.19 | 3.19 | 3.1594 | 0 |
| Cheddar Block | 2.27 | 2.27 | 2.2363 | 0 |
| Cheddar Barrel | 2.285 | 2.285 | 2.2588 | 0 |
| NDM Grade A | 1.38 | 1.38 | 1.355 | 4 |
| Dry Whey | 0.59 | 0.59 | 0.5725 | 3 |
CME Futures Settlement Prices
| Mon | |
| Class III (SEP) $/CWT. | 22.97 |
| Class IV (SEP) $/CWT. | 22.8 |
| Cheese (SEP) $/LB. | 2.288 |
| Blocks (SEP)$/LB. | 2.155 |
| Dry Whey (SEP) $/LB. | 0.56 |
| NDM (SEP) $/LB. | 1.345 |
| Butter (SEP) $/LB. | 3.204 |
| Corn (SEP) $/BU. | 3.8425 |
| Corn (DEC) $/BU. | 4.0725 |
| Soybeans (SEP) $/BU. | 10 |
| Soybeans (NOV) $/BU. | 10.1875 |
| Soybean Meal (SEP) $/TON | 318.1 |
| Soybean Meal (DEC) $/TON | 325.3 |
| Live Cattle (OCT) $/CWT. | 176.95 |
