Butter continues to push higher, up 5 cents to $2.3425 per pound on the Chicago Mercantile Exchange on Thursday on one unfilled bid. Nonfat dry milk gained 1.25 cents, cheddar blocks were 1.25 cents lower while barrels held steady. Class III futures slipped a bit in concert with the blocks.

The increase in butter prices has made cream supplies even tighter, cream multiples are now running 1.35 to 1.6 in the Midwest. Butter has been pushed higher for fears the tight cream supplies may result in tight butter supplies when it comes time for holiday buying. The current bulk butter price is flat to 5-cents over the CME. Dairy Market News says the average price of a pound of butter is $2.98, down 13 cents from a week ago.

The hotter weather in the Midwest last week did suppress milk production a little although temperatures are cooler-than-normal this week. Cheese plants are still running at or near capacity. A few spot loads have sold at $2 over Class. Milk production is drifting lower in the Northeast and Mid-Atlantic States. Increased Class I demand is pulling milk from manufacturing.