Butter Prices Drop to Lowest Since January
Source: DairyNews.today
Butter prices have hit their lowest level since January, dropping by seven cents to settle at $2.68 per pound in the spot market. This decline marks a notable shift in the U.S. dairy market, with four lots of butter sold during the trading session.
Similarly, block cheese prices also fell by 5.25 cents, reaching $2.0275 per pound. In contrast, barrel cheese prices saw a modest uptick, rising by $0.0075 to $2.1525 per pound, with no loads exchanged.
In comparison to global markets, Europe continues to lead in both cheese and butter prices. This week, EU cheese prices averaged $2.63 per pound, significantly higher than New Zealand’s $2.09 and the U.S. price of $2.13 per pound. The disparity is even more pronounced for butter, with European prices slipping to $4.02 per pound, compared to New Zealand’s $2.84 and the U.S. price of $2.75 per pound. All international prices have been adjusted for 80% butterfat content, though they have softened slightly from recent highs.
Futures markets also reflected the overall weakness in dairy prices. Class III milk futures closed lower today, with the nearest contract settling at $22.97 per hundredweight, down 13 cents. The fourth-quarter prices also saw declines, falling to $21.39 per hundredweight, down 31 cents. A similar trend was observed in Class IV milk futures, with Q4 prices dropping by 13 cents to $21.03 per hundredweight.
The dairy market is currently experiencing fluctuations driven by shifting supply and demand dynamics, with the volatility expected to continue as global price disparities remain significant.
In comparison to global markets, Europe continues to lead in both cheese and butter prices. This week, EU cheese prices averaged $2.63 per pound, significantly higher than New Zealand’s $2.09 and the U.S. price of $2.13 per pound. The disparity is even more pronounced for butter, with European prices slipping to $4.02 per pound, compared to New Zealand’s $2.84 and the U.S. price of $2.75 per pound. All international prices have been adjusted for 80% butterfat content, though they have softened slightly from recent highs.
Futures markets also reflected the overall weakness in dairy prices. Class III milk futures closed lower today, with the nearest contract settling at $22.97 per hundredweight, down 13 cents. The fourth-quarter prices also saw declines, falling to $21.39 per hundredweight, down 31 cents. A similar trend was observed in Class IV milk futures, with Q4 prices dropping by 13 cents to $21.03 per hundredweight.
The dairy market is currently experiencing fluctuations driven by shifting supply and demand dynamics, with the volatility expected to continue as global price disparities remain significant.
