Feeling the squeeze in the dairy market lately? You’re not alone. Many of us have been watching the Chicago Mercantile Exchange like hawks, and Wednesday’s numbers threw us a curveball, didn’t they? With cash dairy prices mostly down, it’s time to look closely at what’s happening out there.
CME cheese prices took a hit today. Barrels dropped by 12.5 cents to $2.1250 per pound with just one lot traded. Blocks weren’t spared either, falling by 6.5 cents to $2.0750 per pound, also with one load exchanged. Nonfat dry milk (NDM) slid to $1.3050 per pound, shedding a penny with five lots traded. Fourth quarter Class III futures showed mixed results, averaging $21.88 per hundredweight, down by nine cents. Meanwhile, Q4 Class IV futures slipped 15 cents to $22.64 per hundredweight. Grain futures aren’t faring much better. September corn settled at $3.6525 per bushel, down by two cents, while the nearby soybean contract finished at $9.5850 per bushel, losing nine cents.
Let’s break down the numbers:
- Dry whey: Down $0.0125, now at $0.5525. We saw five trades between $0.5525 and $0.56 in this range.
- Blocks: D by $0.0650, now standing at $2.0750. Only one trade occurred at that price.
- Barrels: Dropped $0.1250, coming in at $2.1250 after just one trade.
- Butter: Stayed unchanged, holding steady at $3.1975.
- Nonfat dry milk: Fell by $0.01 to $1.3050, with five sales in the range of $1.30 to $1.3150.
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 3.1975 | NC | 0 | 0 | 0 |
| Cheddar Block | 2.075 | -6.5 | 1 | 0 | 2 |
| Cheddar Barrel | 2.125 | -12.5 | 1 | 2 | 1 |
| NDM Grade A | 1.305 | -1 | 5 | 2 | 3 |
| Dry Whey | 0.5525 | -1.25 | 5 | 1 | 0 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Mon | Mon | Tue | Wed | Current Avg. | Prior Week Avg. | Weekly Volume |
| Butter | 3.175 | 3.1975 | 3.1975 | 3.19 | 3.159 | 16 |
| Cheddar Block | 2.14 | 2.14 | 2.075 | 2.1183 | 2.082 | 8 |
| Cheddar Barrel | 2.25 | 2.25 | 2.125 | 2.2083 | 2.225 | 2 |
| NDM Grade A | 1.2975 | 1.315 | 1.305 | 1.3058 | 1.279 | 32 |
| Dry Whey | 0.565 | 0.565 | 0.5525 | 0.5608 | 0.561 | 7 |
CME Futures Settlement Prices
| Mon | Tue | Wed | |
| Class III (SEP) $/CWT. | 22.54 | 22.55 | 22.12 |
| Class IV (SEP) $/CWT. | 22.27 | 22.59 | 22.59 |
| Cheese (SEP) $/LB. | 2.205 | 2.194 | 2.155 |
| Blocks (SEP)$/LB. | 2.14 | 2.14 | 2.14 |
| Dry Whey (SEP) $/LB. | 0.54 | 0.54 | 0.54 |
| NDM (SEP) $/LB. | 1.2775 | 1.3045 | 1.2875 |
| Butter (SEP) $/LB. | 3.1995 | 3.2175 | 3.2175 |
| Corn (SEP) $/BU. | 4.24 | 3.6725 | 4.2625 |
| Corn (DEC) $/BU. | 3.86 | 3.925 | 3.905 |
| Soybeans (SEP) $/BU. | 9.6075 | 9.695 | 9.5925 |
| Soybeans (NOV) $/BU. | 9.81 | 9.8775 | 9.765 |
| Soybean Meal (SEP) $/TON | 312.2 | 317.3 | 310.5 |
| Soybean Meal (DEC) $/TON | 308.1 | 312.4 | 308.3 |
| Live Cattle (OCT) $/CWT. | 176.98 | 179.18 | 178.68 |
Trading commodities futures and options entails considerable risk. Investors must carefully balance these risks with their financial status. Although we obtained the material from credible sources, it has not been independently confirmed. This article represents the author’s viewpoint, not necessarily that of The Bullvine, and is meant as a solicitation. Remember that previous performance does not guarantee future outcomes.
