Class III Milk futures, traded on the CME, represent the price paid to dairy farmers for milk used primarily in the production of hard cheeses such as cheddar. Prices are driven by domestic milk production volumes, feed costs (notably corn and soybean meal), seasonal herd cycles, and demand from cheese and whey processors. The United States is the world's largest milk producer, and Class III prices can also be influenced by export demand and government dairy support programs. The contract is quoted in U.S. dollars per hundredweight (cwt), the standard unit for bulk milk pricing.
السياق السوقي
Class III Milk is trading at $16.68 per hundredweight, up approximately 1.2% on the day and nearly 0.9% on the week. The market has gained about 5.6% over the past month and is up roughly 7.5% year-to-date. Despite this recent momentum, prices remain about 4.1% below where they stood one year ago.