The CME barrels market hit its highest price mark since November 2020, jumping by 5 cents to reach $2.4850 per pound. But what does that mean for you?
Let’s break it down. High barrel prices can signal strong demand, which could be an opportunity or a challenge, depending on your position. While barrels surged, spot blocks only shifted slightly, down half a cent to $2.2750 per pound. So, should you be bullish on barrels or cautious about blocks?
This latest rise represents a robust market condition that hasn’t been seen in almost four years. And the momentum didn’t stop there. Butter prices came back, climbing 4.5 cents to $3.1300 per pound. Monitoring these fluctuations is always a good idea, as they can affect your pricing strategy. The impact on Q4 Class III contracts was immediate, bumping prices by 14 cents to $23.17 per hundredweight. This is a significant jump when you consider that futures were up by 98 cents just a week ago.
Here’s a quick look at the numbers:
- Butter: $3.1300 per pound, up 4.5 cents
- Cheddar Block: $2.2750 per pound, down 0.5 cents
- Cheddar Barrel: $2.4850 per pound, up 5 cents
- NDM Grade A: $1.3925 per pound, down 0.25 cents
- Dry Whey: $0.6050 per pound, up 1.5 cents
Let’s not forget the USDA’s update on spot milk prices in the Upper Midwest. They’ve hit a midpoint of $2.50 per hundredweight over class, the highest for Week 37 since 2010. The top range reached as high as +$4.00, significantly above last year’s midpoint of +$1.00 and the five-year average of $0.05. What does this drastic rise tell you about the market’s future?
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 3.13 | 4.5 | 0 | 4 | 1 |
| Cheddar Block | 2.275 | -0.5 | 3 | 0 | 0 |
| Cheddar Barrel | 2.485 | 5 | 0 | 2 | 1 |
| NDM Grade A | 1.3925 | -0.25 | 1 | 2 | 4 |
| Dry Whey | 0.605 | 1.5 | 3 | 1 | 1 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Mon | Tue | Wed | Thur | Fri | Current Avg. | Prior Week Avg. | Weekly Volume | |
| Butter | 3.19 | 3.175 | 3.175 | 3.085 | 3.13 | 3.151 | 3.1594 | 12 |
| Cheddar Block | 2.27 | 2.305 | 2.315 | 2.28 | 2.275 | 2.289 | 2.2363 | 9 |
| Cheddar Barrel | 2.285 | 2.34 | 2.385 | 2.435 | 2.485 | 2.386 | 2.2588 | 3 |
| NDM Grade A | 1.38 | 1.395 | 1.3975 | 1.395 | 1.3925 | 1.392 | 1.355 | 31 |
| Dry Whey | 0.59 | 0.59 | 0.59 | 0.59 | 0.605 | 0.593 | 0.5725 | 9 |
CME Futures Settlement Prices
| Mon | Tue | Wed | Thur | Fri | |
| Class III (SEP) $/CWT. | 22.97 | 23.12 | 23.15 | 23.18 | 23.22 |
| Class IV (SEP) $/CWT. | 22.8 | 22.94 | 22.85 | 22.85 | 22.63 |
| Cheese (SEP) $/LB. | 2.288 | 2.325 | 2.325 | 2.317 | 2.333 |
| Blocks (SEP)$/LB. | 2.155 | 2.21 | 2.21 | 2.21 | 2.21 |
| Dry Whey (SEP) $/LB. | 0.56 | 0.5625 | 0.5625 | 0.5653 | 0.5675 |
| NDM (SEP) $/LB. | 1.345 | 1.35 | 1.35 | 1.3445 | 1.352 |
| Butter (SEP) $/LB. | 3.204 | 3.1998 | 3.17 | 3.13 | 3.16 |
| Corn (SEP) $/BU. | 3.8425 | 3.81 | 3.81 | 3.875 | 4.43 |
| Corn (DEC) $/BU. | 4.0725 | 4.04 | 4.05 | 4.0675 | 4.1375 |
| Soybeans (NOV ’24) $/BU. | 10 | 9.816 | 9.816 | 9.816 | 1.005 |
| Soybeans (NOV ’25) $/BU. | 10.1875 | 9.972 | 9.972 | 9.972 | 1.0575 |
| Soybean Meal (OCT) $/TON | 318.1 | 310.8 | 313 | 316.1 | 318.5 |
| Soybean Meal (DEC) $/TON | 325.3 | 317.8 | 320.2 | 323.6 | 323 |
| Live Cattle (OCT) $/CWT. | 176.95 | 176.28 | 176.28 | 178.13 | 177.58 |
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