The Latest: November - 2025
U.S. Dairy Herd is Likely to Continue to Grow
Producers who had put off expansions when interest rates first climbed in 2022 eventually moved forward with their plans, and many are just now putting cattle into new heifer barns and milk parlors after completing the multi-year permitting, financing, and construction process. Meanwhile, in New York and throughout the heartland, dairy producers jumped at the opportunity to supply new dairy processing facilities. Based on the timing of new processing, the U.S. dairy herd is likely to continue to grow.
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USDA released its Milk Production report this week, indicating that national output contracted in September for the third month in a row. While they estimated only modest production losses for September, the agency made some important revisions to production in prior months, driven by both lower yields and fewer cows.
View reportThe butter market’s luck has changed dramatically. After repeatedly setting record highs since late September, the market descended in dramatic fashion this week. Despite the decline, butter prices remain historically strong as cream is tight and buyers are making their final orders ahead of the holiday season.
View reportLike a mountaineer surveying Everest from K2, the butter market is exploring new heights. CME spot butter scaled a previously unconquered peak last week, and it didn’t stop there. This week it ascended another 20.25ȼ to a fresh all-time high at $3.5025 per pound. U.S. butter output topped year-ago production by wide margins in January through July.
View reportThe U.S. butter market took off like a rocket. It soared 30ȼ this week and closed at $3.30 per pound, just shy of the all-time high set yesterday. The meteoric strength caught the market by surprise.
View reportCME spot butter soared an astounding 28.25ȼ this week and closed right at the $3 mark. Exports are out of the question, but domestic demand is firm, and butter churns are running light.
View reportThe Class III markets took a big step back this week. Cooler weather has boosted yields, providing a little more milk for cheese vats. Loads of spot milk still command a premium in the Midwest, but they are slightly cheaper than they were in early September. Dairy cow slaughter is not running as hot as it did this summer, which suggests that dairy producers were feeling a little more hopeful in late August and early September.
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