Dairy markets saw a surge in cheese prices on January 27, 2025, with cheddar blocks leading the charge. Butter held steady at an intense level, while other products remained unchanged. What does this mean for milk prices? Read on for our complete CME dairy market analysis.
Summary:
On January 27, 2025, the CME dairy market saw cheese prices go up and butter prices stay the same, suggesting milk prices might soon rise for farmers. Cheddar blocks increased by 3.75 cents to $1.8700 per pound, and cheddar barrels increased by 2.00 cents to $1.8400 per pound. Butter stayed at $2.5300 per pound. This shows a strong cheese market that could boost Class III milk prices. Meanwhile, non-fat dry milk and dry whey prices didn’t change, showing little activity in those areas. To manage market changes, dairy farmers should monitor their production, export markets, and costs.
Key Takeaways:
- Cheddar block prices increased by 3.75 cents to $1.8700 per pound
- Butter held steady at $2.5300 per pound
- Cheese market strength could positively impact Class III milk prices
- Weekly comparisons show significant gains in the cheese sector
On January 27, 2025, cheese prices increased while butter prices remained stable in the Chicago Mercantile Exchange (CME) dairy market. These price changes in cheese and butter will likely increase milk prices for dairy farmers. Cheddar block and cheddar barrel prices rose, whereas butter maintained a stable price at a relatively high level. These market trends will produce higher milk prices for dairy farmers shortly.
Daily CME Cash Dairy Product Prices ($/lb.)
| Final | Change ¢/lb. | Trades | Bids | Offers | |
| Butter | 2.5300 | NC | 5 | 3 | 1 |
| Cheddar Block | 1.8700 | +3.75 | 9 | 2 | 0 |
| Cheddar Barrel | 1.8400 | +2.00 | 4 | 2 | 1 |
| NDM Grade A | 1.3475 | NC | 0 | 0 | 1 |
| Dry Whey | 0.6975 | NC | 0 | 0 | 2 |
Cheese Market Shows Strength
Remarkably, the cheese market stole the spotlight as the top performer of the day,
- Cheddar blocks surged by 3.75 cents to reach $1.8700 per pound, with nine trades recorded.
- Cheddar barrels increased by 2.00 cents, settling at $1.8400 per pound, with four trades.
The increase in cheese prices bodes well for Class III milk prices, which are significantly affected by the market’s performance. The increased spread of 3 cents between blocks and barrels indicates a growing preference for higher-quality cheeses, reflecting a robust demand in the market.
Butter Market Remains Stable
Butter prices held firm at $2.5300 per pound, with five trades executed. Despite remaining unchanged from the previous session, the consistent butter price level continues to underpin the dairy industry. Stable butter prices benefit producers with higher butterfat components in their milk.
Other Dairy Products
The prices of non-fat dry milk (NDM) Grade A and dry whey remained unchanged at $1.3475 and $0.6975 per pound, respectively. However, neither product saw any trades during the session, indicating limited market activity in these sectors.
Weekly Comparison and Market Analysis
When comparing the current prices to the prior week’s averages, some interesting trends emerge:
| Product | Current Price | Prior Week Avg. | Change |
|---|---|---|---|
| Butter | $2.5300 | $2.5250 | +$0.0050 |
| Cheddar Block | $1.8700 | $1.8019 | +$0.0681 |
| Cheddar Barrel | $1.8400 | $1.8250 | +$0.0150 |
| NDM Grade A | $1.3475 | $1.3500 | -$0.0025 |
| Dry Whey | $0.6975 | $0.7088 | -$0.0113 |
The notable rise in cheddar block prices in the past week is significant, possibly suggesting increased demand or limited supply in the cheese market.
Implications for Dairy Farmers
A more substantial cheese market and stable butter prices will likely positively impact milk prices for dairy producers. Nevertheless, analyzing these daily market shifts in the context of long-term trends and other industry factors is crucial.
Key points for dairy farmers to monitor include:
- Milk production levels and how they might impact supply-demand balance
- Export market conditions, which can significantly influence domestic prices
- Feed costs and other input expenses that affect overall profitability
The Bottom Line
As 2025 unfolds, the evolving market dynamics are set to influence the dairy industry profoundly. Farmers must keep up with market reports and adapt their strategies to enhance profitability in this evolving landscape. Stay updated on daily market movements and evaluate their impact on your operations. Think about employing risk management practices to protect against price fluctuations. Consider seeking guidance from financial advisors or joining dairy cooperatives to develop customized strategies to help you navigate this ever-changing market’s complexities.
Learn more:
- Is the Summer Heat Finally Over? Dairy Farmers See Milk Production Stabilize, but Challenges Remain!
- Markets are not Bullish or Bearish, but Indecisive: Cheese Stocks Shrink Amid Soaring Milk Demand.
- Cheese and Butter Prices Plummet After Holiday Weekend: Market Struggles to Recover
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