Dairy Market Update: Barrels Reach Record-Highs, Butter Prices Dip as Market Volatility Continues
Source: DairyNews.today
The dairy market witnessed significant fluctuations as barrel cheese prices surged to an all-time high. Barrels reached $2.6225 per pound, marking an increase of 5.75 cents, setting yet another record. In contrast, block cheese prices softened, slipping by 3.25 cents to $2.2450 per pound. Spot butter prices also experienced a notable decline, falling to $3.0050 per pound, a drop of eight cents to the lowest level since May.
This occurred despite European Union butter values rising to $4.06 per pound (adjusted to 80% butterfat).
In the futures market, Class III prices for Q4 dipped to $22.69 per hundredweight, shedding 36 cents, despite the continued rise in barrel prices. Class IV futures followed a similar trend, pressured by the weaker butter prices, falling 31 cents to $22.20 per hundredweight.
Adding to the market uncertainty, the U.S. Federal Reserve announced a 0.5% cut (50 basis points) in the benchmark interest rate, marking the first such reduction in over four years. The Fed also indicated plans for two additional rate cuts before the year-end, reflecting efforts to stabilize the broader economy amidst ongoing market turbulence.
In the futures market, Class III prices for Q4 dipped to $22.69 per hundredweight, shedding 36 cents, despite the continued rise in barrel prices. Class IV futures followed a similar trend, pressured by the weaker butter prices, falling 31 cents to $22.20 per hundredweight.
Adding to the market uncertainty, the U.S. Federal Reserve announced a 0.5% cut (50 basis points) in the benchmark interest rate, marking the first such reduction in over four years. The Fed also indicated plans for two additional rate cuts before the year-end, reflecting efforts to stabilize the broader economy amidst ongoing market turbulence.
