The cash price for butter jumped 16 cents a pound Thursday on the Chicago Mercantile Exchange, to $2.66, according to the High Ground Dairy brokerage firm.
The cash price is also known as the spot price. The price had been hovering around $2.40 a pound for the past 7 to 10 days.
The price of a pound of butter is now 15 cents shy of its all-time high of $2.81, reached in 1998.
Butter prices this year have soared amid strong worldwide demand. That demand has left stocks of butter in fairly short supply compared with previous years.
Futures prices and prices overseas indicate that the spot or cash price for butter is likely to fall at some point, traders say.