Chicago saw record butter trading volumes today, with CME cheese markets also surging. Blocks and barrels of cheese hit new highs, while spot butter prices reached a historic peak. Futures contracts for Class III milk and “all cheese” also saw significant gains. July retail sales exceeded expectations, reflecting broader economic trends.
The Chicago Mercantile Exchange (CME) cheese markets saw a significant uptick today, with notable movements in cheese and butter prices. CME cheese markets experienced a notable surge, reflecting broader trends in dairy commodities. This article covers the latest market movements, including record-setting butter trades and shifts in futures contracts.
CME Cheese Market Movements
The CME cheese markets resumed their upward trajectory, with significant price changes for both blocks and barrels of cheese. Blocks soared to $2.1000 per pound, marking an increase of $0.0725, a level not seen since March 2023. Barrels also saw a substantial gain, climbing 8.5 cents to reach $2.2500 per pound. Today’s trading included four lots of blocks and one lot of barrels.
Record Spot Butter Trades
In a remarkable development, spot butter trades reached an all-time high with 51 loads changing hands. This volume represents the heaviest single day of trading since the commencement of daily trading in 2006. Spot butter prices climbed to $3.1450 per pound, up 2.5 cents, setting a new record for butter trading volumes.
Futures Market Updates
As cheese and butter prices surged, futures contracts for Class III milk and “all cheese” also saw significant gains. September and October Class III contracts rose to $22.05 and $22.40 per hundredweight, each reaching the limit up of +75 cents. Similarly, September and October “all cheese” futures were limit up (+7.5 cents), settling at $2.1480 and $2.1780 per pound, respectively.
Retail Sales and Economic Context
US retail sales for July exceeded expectations, reaching $709.7 billion. This represents a 1.0% increase from the previous month and a 2.8% increase compared to 2023. Grocery sales, which outpaced rising prices, saw a 1.0% month-over-month increase and a 2.3% year-over-year increase, while food-at-home inflation was relatively modest at +0.1% and +1.1%. Food service spending advanced 0.3% month-over-month and 3.6% year-over-year, with menu prices rising 0.2% and 4.1%, respectively.
Today’s trading activities on the CME reflect significant movements in dairy markets, with record-setting volumes and price increases for cheese and butter. These trends are indicative of broader market dynamics and economic conditions impacting the dairy sector. The Chicago Mercantile Exchange continues to be a critical venue for trading and setting benchmarks in dairy commodities.
