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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CME 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.
View reportThe meltdown in the butter market dragged November Class IV down. Pricey cream discouraged churns from running hard in early September, and butter output is down 1.4% from a year ago. Butter makers have stepped up the pace but the market makes clear that butter supplies remain tight
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