The Latest: August - 2026
Summer Heat
Drought in the Plains withered the U.S. wheat crop to its smallest harvest since 1970. The drought has also reduced forage supplies and raised hay prices throughout the West. Similarly scorching weather reduced Europe’s grain harvest by 8% compared to last year’s bumper harvest. Meanwhile, Russia and Ukraine continue to bomb one another’s ports and cargo ships, throttling grain exports from the breadbasket on the Black Sea. Smaller, less accessible global wheat supplies suggest that U.S. corn exports could speed up from an already breakneck pace.
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The 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.
View reportCME spot Cheddar blocks dropped and barrels fared even worse. Cheese output remains strong, and there are fears that demand will no longer keep pace.
View reportThe factors that propelled milk prices above $25 per cwt. this summer are no longer in play. But those extremely bullish forces will continue to impact the markets for a little while longer, as exporters fill orders signed months ago when most U.S. dairy product prices were more competitive than they are today.
View reportDairy markets headed into the Thanksgiving weekend with a double portion of USDA reports and finished with a mountain of data to swallow from today’s Dairy Products report. News of lower milk output in Australia and New Zealand made for appetizing side dishes together with news that the Federal Reserve might increase interest rates at a trot rather than a gallop.
View reportCME spot butter managed to keep climbing through Wednesday before it finally turned back. Butter’s resilience has taken the market by surprise. Retailers bought butter aggressively in September and October to stock up for the holidays.
View reportClass III milk futures leapt to their highest values in a month or more, and Class IV contracts staged a decisive comeback. CME spot Cheddar blocks vaulted 19ȼ to $2.20 per pound, their highest price since June. Barrels rallied 8.75ȼ to $2.0625.
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