The U.S. butter market saw a significant trading surge this week, with 127 loads traded, marking the third-highest volume in CME history. Spot butter prices rose to $2.6350 per pound, while cheese prices also inched higher. Class III milk futures increased, with mixed results for Class IV prices. European butter and cheese maintain a premium over global prices.
In the United States, the butter market experienced a remarkable surge in trading volume this week, with 48 lots changing hands, bringing the total to 127 loads. This volume ranks as the third-highest in history on the Chicago Mercantile Exchange (CME). Despite the significant trading activity, spot butter prices increased to $2.6350 per pound, rising by two cents.
Cheese prices also saw slight increases, with block cheese settling at $1.9425 per pound, up half a cent, and barrel cheese priced at $1.9300 per pound, gaining four cents. Following this trend, Class III milk futures rose as well, with the nearby contract settling at $22.55 per hundredweight, up one cent, while fourth-quarter prices increased to $21.66 per hundredweight, an increase of 16 cents.
Also Read- Record Butter Volume Traded in Chicago: CME Cheese Markets Surge
In contrast, Class IV prices displayed mixed results. October futures dipped to $21.06 per hundredweight, down four cents, but fourth-quarter prices rose to $21.10 per hundredweight, up three cents.
Comparatively, European butter and cheese prices continue to hold a premium over the global market. This week, EU butter averaged $3.83 per pound, significantly higher than New Zealand’s $2.87 per pound and the U.S. price of $2.62 per pound, adjusted for 80% butterfat. EU cheese prices also outpaced others at $2.52 per pound, compared to $2.13 per pound in New Zealand and $1.92 per pound in the U.S.
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