The Latest: August - 2026
The Epitome of Stability
There’s an unusual convergence in the dairy markets, with spot cheese, butter, and milk powder trading neck and neck in the $1.50s. All three products seemed pretty comfortable at these prices, and week-to-week changes were modest. CME spot butter slipped 0.25ȼ to $1.5125 per pound. Cheddar blocks fell 1.75ȼ to $1.555. Meanwhile, CME spot nonfat dry milk (NDM) climbed 1.75ȼ to $1.5775. The epitome of stability, CME spot whey powder inched up 0.25ȼ to 69.5ȼ.
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Dairy commodity prices continue to flounder under the pressure of plentiful supplies and, in turn, are weighing on milk prices.
View reportDespite falling milk prices and tightening margins, milk supplies remain ample in most parts of the country. Elevated summer temperatures and humidity are starting to weigh on cow comfort and negatively impact output, but only in parts of the nation.
View reportThe Midwest region has been overwhelmed with excess milk since December, and producers are paying for it in the form of steep discounts on spot milk, bigger freight deductions, and – in the worst instances – dumped milk.
View reportThe long-awaited rains have disappointed so far. A weekend drizzle and sporadic showers over the past few days have not added up to much, and soils are parched in the Corn Belt. USDA estimates that 57% of U.S. corn production is currently struggling through drought.
View reportThe Midwest is awash in milk, and many dairy producers have been forced to dump milk that could not find a home. Cheesemakers say they are taking all they can, but the spot milk market is still “sloppy,” with more loads trading at steeper discounts.
View reportThere is simply too much cheese. USDA’s Dairy Market News reports that cheese production schedules are “steady to stronger” and, for some cheesemakers, “limited warehouse space is becoming a concern.” Meanwhile, there is plenty of milk, especially now that bottlers are slowing down intakes for summer break.
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