# Butter can confound Class III cheese prices

> Record-high butter prices are distorting the Federal Milk Marketing Order Class III formula, which raises the cheese-based milk price by 10 cents per cwt for every 25 cents butter rises. Cheesemakers are therefore struggling to pay Class III prices and need to reblend when butter is high.

- Date: 2022-12-26 · published 2022-12-26T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/38378-butter-can-confound-class-iii-cheese-prices
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

The formula quirk means cheesemakers face higher milk pay prices even when cheese values are flat, pressuring margins and reblending decisions that affect milk and dairy product flows.

## Read by commodity

- MILK: neutral

## Sources

- hoards.com: https://hoards.com/article-33010-butter-can-confound-class-iii-cheese-prices.html

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