The Latest: March - 2026
Fresh Infusion of Global Turmoil
The dairy markets are contending with an abundance of milk and a fresh infusion of global turmoil. That amped up the volatility on LaSalle Street. CME spot Cheddar blocks came out strong on Monday and rallied to a four-month high at $1.63 per pound. But as the week wore on, blocks’ enthusiasm waned. They settled today at $1.53, down 8.75ȼ for the week. “Export cheese demand is strong, but some contacts are concerned that rising shipping costs will negatively impact international interest.” American cheese remains the least expensive option, but with both the dollar index and cheese prices up sharply from where they stood a few weeks ago, some international buyers may no longer view it as a bargain.
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U.S. inflation accelerated to 9.1% last month, reducing Americans’ purchasing power at the fastest rate since 1981. The dairy markets suffered too.
View reportPrices for dairy commodities moved lower both at home and abroad as the markets sort through supply and demand dynamics. Concerns about economic cooling, inflation, and the resulting impact on dairy demand seems to have been sufficient to push back on pricing.
View reportCME spot butter leapt 9.5ȼ to $3.01 per pound. That’s the highest spot butter price since 2015. The other spot products also climbed, however milk futures struggled.
View reportRed ink flowed on LaSalle Street this week as the trade reckoned with the fact that, although milk production continues to shrink, cheese abounds. Ongoing concerns about demand also pressured the markets.
View reportConcerns about demand have been simmering near the surface for several months. This week, rising interest rates and a plummeting stock market brought the anxiety up to a full boil.
View reportThe butter market illustrates the conundrum that besets much of the dairy complex. Stocks are relatively low and production is falling seasonally. Milk and butter output are not rising anywhere that matters. U.S. butter is much cheaper than foreign product, so trade is further eroding supplies.
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