The Latest: February - 2026
Butter Futures Jumped This Week
Butter futures jumped this week on the heels of a bullish Cold Storage report. USDA pegged January 31 butter inventories at 215.4 million pounds, down 17.4% from the year before. Domestic butter demand was robust and exports were strong enough to offset the significant growth in U.S. butterfat output. More recently, though, USDA’s Dairy Market News reported that butter churns are running “seven days a week… at or near max capacity.” And manufacturers tell Dairy Market News they are “building inventories to prepare for upcoming slower production periods.”
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Although things had started to bounce back in June, the fledgling economy recovery seems to have stalled in July as the virus rages on. The initial panic has calmed, but the pandemic will continue to disrupt the dairy industry in myriad ways.
View reportCheddar blocks have lost ground every day since they topped out less than two weeks ago. Still, there is more than enough cheese to meet demand, even if manufacturers dug into inventories last month.
View reportOn Monday they sprinted straight uphill to a record-shattering price. Their journey to that point is an astounding feat of strength and stamina but by the end of the week, prices had fallen far enough to attract buyers.
View reportIn an environment as fickle as the Chicago Mercantile Exchange, bulls are not typically bred for their stamina. But in the Cheddar block market there is a bull of a different breed.
View reportAlthough there is plenty of milk, there is a shortage of fresh cheese and demand remains resilient despite the price.
View reportFears that the meteoric rise was all sparkle and no substance were doused by buyer’s willingness to step in and make a purchase, rather than sit on the sidelines and let the selloff run its course.
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