Butter Trade Volume Reaches Record High Amid Price Fluctuations
The butter market saw record-setting trade volumes this week, with a total of 161 loads exchanged—the highest since the Chicago Mercantile Exchange (CME) introduced its five-day trading schedule.
Despite this milestone, butter prices eased slightly, closing at $2.6600 per pound, down two cents, with just one load traded during Friday’s session.
Meanwhile, cheese markets remained stable, with block and barrel prices holding at $1.9250 and $2.0100 per pound, respectively, without any loads exchanged.
In the futures market, Class III milk contracts experienced mixed movements. The October contract rose by 18 cents to $22.76 per hundredweight, while fourth-quarter prices softened slightly, settling at $21.77 per hundredweight, down eight cents. The Class IV market saw more modest declines, with the nearby contract slipping 15 cents to $20.91 per hundredweight, and Q4 prices edging down by two cents to $21.16 per hundredweight.
As the market anticipates the USDA's Milk Production report on Monday, industry experts at Ever.Ag forecast a 0.4% year-over-year decline in September milk production, following a 0.1% drop in August. Additionally, avian influenza cases in California may have an impact on the state’s dairy output, adding further uncertainty to the market.
Meanwhile, cheese markets remained stable, with block and barrel prices holding at $1.9250 and $2.0100 per pound, respectively, without any loads exchanged.
As the market anticipates the USDA's Milk Production report on Monday, industry experts at Ever.Ag forecast a 0.4% year-over-year decline in September milk production, following a 0.1% drop in August. Additionally, avian influenza cases in California may have an impact on the state’s dairy output, adding further uncertainty to the market.
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