The Latest: July - 2026
Inflation Eases, But Energy Risks Remain
U.S. consumers felt a bit of relief in June as prices eased somewhat. The Consumer Price Index, published by the Bureau of Labor Statistics (BLS) eased to 3.5% during the month, down 0.7 percentage points from May due especially to softer energy prices. Lower gasoline prices were also the key driver that boosted the Consumer Sentiment Index (CSI), which rose to 54.4 points in the preliminary July reading published by the University of Michigan.
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By all accounts, there is still plenty of milk, and driers are running hard. In March, U.S. output of NDM and SMP reached 236 million pounds, up 0.6% from a year ago.
View reportThe feed markets tumbled once again this week and dairy producers can thank Brazilian farmers for the setback. Brazil lacks the infrastructure to hold this year’s bin-busting production. Brazilian soybeans outprice U.S. soy by such a wide margin, two ships with Brazilian soybeans will hit the U.S. Southeast coast this week.
View reportWith more cows in the barn, milk production climbed, but the increase was far from formidable. Our competitors overseas also reported modest growth.
View reportInk ran red on LaSalle Street this week, led by a precipitous decline in barrels. Blocks lost ground too, but their decline was not nearly so dramatic.
View reportOver the holiday shortened week, every commodity lost ground at the CME spot market. Price declines were not limited only to the United States, however. At Tuesday’s Global Dairy Trade (GDT) event the GDT Index fell by 4.7%, weighed down by losses across every product except Cheddar cheese.
View reportLast Friday, the spot Cheddar block market closed at $2.10/lb., the highest price in over two months. This week, however, the trajectory shifted dramatically. It appears that fundamentals may have caught up with the Cheddar market and ushered in the decline.
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