# Class III Milk and Cheese Markets Surge: New Highs Amid Sluggish Production and Robust Butter Demand | The Bullvine

> Class III milk and cheese futures hit new contract highs at the start of 2025, with barrel and block cheese at $1.875. Cheese output fell about 33 million lbs short of forecasts in November, and strong butter demand is pulling milk away from cheese production.

- Date: 2025-01-07 · published 2025-01-07T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/26666-class-iii-milk-and-cheese-markets-surge-new-highs-amid-sluggish-production-and
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tighter cheese production and firm butter demand support higher dairy product values, which supports milk prices and dairy feed demand.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2025-01-06 | 5 | +10.4% | 2.8 | Class III and cheese futures hit new contract highs at the start of 2025 on sluggish cheese output, which matches the direction and timing of the rally. Dated 01-07, it may partly reflect the move rather than cause it. |

## Sources

- thebullvine.com: https://www.thebullvine.com/news/class-iii-milk-and-cheese-markets-surge-new-highs-amid-sluggish-production-and-robust-butter-demand/

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