Butter Leads Cash Dairy Prices Higher as CME Strengthens Thursday
Key Takeaways
- •Butter rose 3.25 cents to $1.44 per pound, the largest gain among the CME spot dairy products tracked.
- •Dry whey increased 1 cent to 75 cents, with one sale reported at that level.
- •Forty-pound cheese blocks added a quarter of a cent to $1.4775, while cheese barrels stayed unchanged at $1.5325.
- •Nonfat dry milk remained at $1.88, with five sales reported between $1.87 and $1.88.
September 3, 2026 | By Erin Anderson | Brownfield Ag News
Cash dairy prices were mostly higher Thursday at the Chicago Mercantile Exchange, with butter posting the day's largest gain. The CME spot dairy markets, where barrels, blocks, butter, nonfat dry milk, and dry whey trade daily, are closely watched across the industry because they serve as benchmark prices that feed into dairy product valuations and milk pricing formulas.
Butter climbed $0.0325 to $1.44 per pound, with eighteen sales reported ranging from $1.43 to $1.44. Butter demand typically firms in the fall as commercial buyers build inventories ahead of year-end holiday baking and foodservice needs.
Dry whey rose $0.01 to $0.75, with one sale reported at that price. Dry whey is a byproduct of cheesemaking, and its price movements often reflect cheese production levels as well as export demand.
Forty-pound cheese blocks advanced $0.0025 to $1.4775. Four sales were reported, ranging from $1.47 to $1.4775.
Cheese barrels were unchanged at $1.5325, with no sales reported. Barrels are used largely in processed cheese, while blocks go mainly into retail and foodservice cheese products, which is why the two can trade at different levels.
Nonfat dry milk held steady at $1.88, with five sales reported ranging from $1.87 to $1.88. Nonfat dry milk prices are heavily influenced by international dairy trade, and movements in global skim milk powder markets are a key factor producers track.
