The Latest: October - 2026
Dairy Market Continues to Diverge
The dairy markets continue to diverge. Strong demand for proteins is lifting powder values. This week, CME spot whey powder gained another 2ȼ and reached 82.5ȼ per pound, a fresh 4.5-year high. Spot nonfat dry milk added a nickel, climbing to $2.22, just 7.5ȼ below the all-time high reached this spring. Asian buyers are eager to import U.S. whey powder, propping up prices despite robust production. For NDM, both domestic and international demand are strong, while production remains restrained. Other dairy processors are lapping up much of the milk supply, spot milk prices are rising, and dryers are running light in the Southwest. U.S. milk powder exports to Mexico are formidable.
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A renewed focus on economic and demographic slowdown in China and a shift to higher milk output in the U.S. and Europe emboldened the bears. The powders were particularly pitiful but this week most markets came roaring back. It seems the dairy trade may have overindulged on pessimism.
View reportU.S. milk output was not as strong as anticipated in December. Perhaps more importantly, the dairy herd is smaller than previously thought, and it’s getting smaller by the month. And yet, there is more than enough milk.
View reportThe bears were out in force this week, pressuring the dairy markets to new lows as supplies accumulated and global demand prospects dimmed. Though risks and challenges persist, milk production has generally been strong across the U.S.
View reportThe cheese markets came charging out of the gates on Monday. The strong start left some market participants scratching their heads. Cheese exports are still strong but none of that gave the cheese markets the energy they needed to maintain their early week sprint.
View reportThe cheese markets got off to a particularly rough start, with big losses both Tuesday and Wednesday. But after a few nights of better rest and healthier habits, they recovered well. Cheese prices are near year-ago levels, suggesting that demand has kept pace with strong production.
View reportThe butter market began the year at a relatively lofty height, suffered a few spectacular setbacks, and then climbed anew. It spent an unprecedented 57 trading sessions at $3 or above and set a new all-time high of $3.2675 per pound in early October.
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