Record-high barrel cheese prices and mixed dairy markets – how will these changes impact your dairy business? Read our expert analysis now.
Records were made to be broken, and that’s precisely what happened yesterday. Spot barrel cheese punched a new all-time high at $2.6225, up by 5.75 cents, as eight loads traded. In contrast, block cheese fell by 3.25 cents, resting at $2.2450. This widened the block/barrel spread to a 37.75 cent inversion—just a hair’s breadth from the record widest spread of 38.5 cents in November 2019. The block/barrel spread is approaching its historical highs, reflecting a complex market where barrel cheese is in strong demand despite a softer block market.
Class III and cheese futures followed the block market’s action, seemingly ignoring the barrel market’s strength. Futures for 2024 and early 2025 declined on Wednesday. With the average cheese price hovering around $2.43, aligning Class III closer to $25.00, futures have kept a cautious, discounted stance. We hear speculative chatter about a slowdown in cheese demand this week, but we suspect some buyers are still waiting for a price drop.
- Spot butter fell to $3.0050 per pound, the lowest since May.
- Class III prices slipped to $22.69 per hundredweight, a decline of 36 cents.
- Spot NFDM closed at $1.3825 per pound after dropping by one cent.
The U.S. Federal Reserve’s recent announcement of a 0.5% rate cut—the first in over four years—could also play a role in market dynamics. They plan two more cuts this year, potentially affecting overall commodity prices and trading strategies.
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 3.005 | -8 | 0 | 0 | 7 |
| Cheddar Block | 2.245 | -3.25 | 3 | 0 | 1 |
| Cheddar Barrel | 2.6225 | 5.75 | 3 | 1 | 0 |
| NDM Grade A | 1.3825 | -1 | 5 | 2 | 5 |
| Dry Whey | 0.595 | NC | 0 | 3 | 1 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Mon | Tue | Wed | Current Avg. | Prior Week Avg. | Weekly Volume | |
| Butter | 3.07 | 3.085 | 3.005 | 3.0533 | 3.151 | 8 |
| Cheddar Block | 2.3 | 2.2775 | 2.245 | 2.2742 | 2.289 | 4 |
| Cheddar Barrel | 2.49 | 2.565 | 2.6225 | 2.5592 | 2.386 | 11 |
| NDM Grade A | 1.39 | 1.3925 | 1.3825 | 1.3883 | 1.392 | 12 |
| Dry Whey | 0.59 | 0.595 | 0.595 | 0.5933 | 0.593 | 4 |
CME Futures Settlement Prices
| Mon | Tue | Wed | |
| Class III (OCT) $/CWT | 23.64 | 23.88 | 23.78 |
| Class IV (OCT) $/CWT. | 22.76 | 22.67 | 22.25 |
| Cheese (OCT) $/LB. | 2.246 | 2.26 | 2.246 |
| Blocks (OCT)$/LB. | 2.24 | 2.23 | 2.22 |
| Dry Whey (OCT) $/LB. | 0.575 | 0.575 | 0.56 |
| NDM (OCT) $/LB. | 1.368 | 1.3718 | 1.3588 |
| Butter (OCT) $/LB. | 3.0773 | 3.0675 | 3.0055 |
| Corn (DEC ’24) $/BU. | 4.1025 | 4.125 | 4.1225 |
| Corn (DEC ’25) $/BU. | 4.475 | 4.4975 | 4.4925 |
| Soybeans (NOV ’24) $/BU. | 10.05 | 10.06 | 10.15 |
| Soybeans (NOV ’25) $/BU. | 10.55 | 10.585 | 10.64 |
| Soybean Meal (OCT) $/TON | 319.8 | 318.7 | 318 |
| Soybean Meal (DEC) $/TON | 323.8 | 322.1 | 321.4 |
| Live Cattle (OCT) $/CWT. | 177.3 | 178.78 | 178.48 |
