# Bearish Milk Production Report Pressures Class III Futures and Butter Markets - Dairy Herd

> CME Class III and butter futures sold off sharply after the USDA Milk Production report showed June output up 3.3% year on year. August and September Class III contracts fell about 50 cents on heavy volume, and spot butter slipped below $2.50/lb.

- Date: 2025-07-23 · published 2025-07-23T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/23897-bearish-milk-production-report-pressures-class-iii-futures-and-butter-markets
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Higher milk flows add supply pressure that drags down Class III and butter prices, weakening the dairy price outlook for buyers of dairy-linked feed ingredients.

## Read by commodity

- MILK: bearish ▼

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/milk-prices/bearish-milk-production-report-pressures-class-iii-futures-and-butter-markets

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.