On this busy market day at the Chicago Mercantile Exchange (CME), cash dairy prices showcased a mixed bag of changes, offering both opportunities and challenges for dairy farmers like you. Let’s dive into the numbers and see what they mean for your bottom line:
- Dry whey held steady at $0.59, with two sales recorded at $0.59 and $0.5925.
- Forty-pound cheese blocks rose by $0.0350, reaching $2.3050, with a single sale recorded at this price.
- Cheese barrels increased by $0.0550, settling at $2.34, but no sales were recorded.
- Butter declined by $0.0150, closing at $3.1750, with no sales recorded.
- Nonfat dry milk climbed by $0.0150 to hit $1.3950, with one sale recorded at this price.
Respect ruled the day in Tuesday’s Class III and Cheese futures. Nearby Class III hit new highs as both blocks and barrels surpassed $2.30/lb., a first for the year. The boost came mainly from bids, though a single block trade occurred late in the session. Despite the overall bullish market trend, such a thin market can be unpredictable.
We expect the firming spot cheese market to bring more loads to market, but fresh cheese remains tight. Buyers are still looking for price breaks and often get them. October Class III traded limit down twice in recent weeks, hitting new highs yesterday and even touching $24.05 this morning. Speculators are firmly on the long side, so while the trend is up, risks remain. Big markets can see volatile swings. We believe the bull market of 2024 isn’t over, but caution is needed.
Butter futures fell due to no follow-through bidding on spot. Prices dipped 1.5 cents with no spot trades, leading to light volume trading. The market remains sideways, waiting for new developments. U.S. butter is less impressive compared to Europe’s $4.00 butter reported last week. Fluid milk supply is a concern, but Double A Salted butter is available in the U.S.
Nonfat Dry Milk (NFDM) continued its rise, hitting new highs for both spot and 2025 futures. This trend began about five weeks ago. Futures have followed closely, indicating broad buy-side interest. Increased domestic and export demand supports this market. However, after five weeks of gains, a pullback might be due.
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 3.175 | -1.5 | 0 | 1 | 1 |
| Cheddar Block | 2.305 | 3.5 | 1 | 0 | 0 |
| Cheddar Barrel | 2.34 | 5.5 | 0 | 1 | 0 |
| NDM Grade A | 1.395 | 1.5 | 1 | 4 | 2 |
| Dry Whey | 0.59 | NC | 2 | 0 | 1 |
Weekly CME Cash Dairy Product Prices ($/lb.)
| Mon | Tue | Current Avg. | Prior Week Avg. | Weekly Volume | |
| Butter | 3.19 | 3.175 | 3.1825 | 3.1594 | 0 |
| Cheddar Block | 2.27 | 2.305 | 2.2875 | 2.2363 | 1 |
| Cheddar Barrel | 2.285 | 2.34 | 2.3125 | 2.2588 | 0 |
| NDM Grade A | 1.38 | 1.395 | 1.3875 | 1.355 | 5 |
| Dry Whey | 0.59 | 0.59 | 0.59 | 0.5725 | 5 |
CME Futures Settlement Prices
| Mon | Tue | |
| Class III (SEP) $/CWT. | 22.97 | 23.12 |
| Class IV (SEP) $/CWT. | 22.8 | 22.94 |
| Cheese (SEP) $/LB. | 2.288 | 2.325 |
| Blocks (SEP)$/LB. | 2.155 | 2.21 |
| Dry Whey (SEP) $/LB. | 0.56 | 0.5625 |
| NDM (SEP) $/LB. | 1.345 | 1.35 |
| Butter (SEP) $/LB. | 3.204 | 3.1998 |
| Corn (SEP) $/BU. | 3.8425 | 3.81 |
| Corn (DEC) $/BU. | 4.0725 | 4.04 |
| Soybeans (SEP) $/BU. | 10 | 9.816 |
| Soybeans (NOV) $/BU. | 10.1875 | 9.972 |
| Soybean Meal (SEP) $/TON | 318.1 | 310.8 |
| Soybean Meal (DEC) $/TON | 325.3 | 317.8 |
| Live Cattle (OCT) $/CWT. | 176.95 | 176.28 |
