The Latest: October - 2026
Tidal Wave of Milk
The dairy markets are awash in a tidal wave of milk. USDA’s latest Milk Production report showed that August milk output was notably higher than previously thought, and the agency pegged September milk production at 19.4 billion pounds, up 2.6% year over year, far higher than LaSalle Street expected. The recent ups and downs in the dairy markets did not diminish dairy producers’ appetite for growth. They added 26,000 cows last month, lifting the dairy herd to 9.74 million head.
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Butter production is always scant in the summer, but it was especially so this year. There were just 314.4 million pounds of butter in cold storage at the end of July, 5.4% less than a year ago and the lowest mid-summer total since 2017.
View reportMarket observers are paying close attention to an evolving global milk production scenario as many key supply regions witnessed a shift in trajectory during June. U.S. production moved into positive territory during the month, rising by a modest 0.2% after months of decline.
View reportThe United States sent a record-setting volume of dairy products abroad in May. Then, after adjusting for a shorter month, it bested that record in June.
View reportThe bulls and bears squared off in Chicago this week, and the dairy markets lurched this way and that as the two sides fought for control. By Wednesday and Thursday, the bears won the upper hand, fueled by news that the U.S. economy contracted in the first half of the year, and that the Federal Reserve hoped to tamp down inflation by raising interest rates yet again.
View reportAfter seven months in the red, U.S. milk production exceeded year-ago volumes in June, topping June 2021 by 0.2%.
View reportU.S. inflation accelerated to 9.1% last month, reducing Americans’ purchasing power at the fastest rate since 1981. The dairy markets suffered too.
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