The Latest: October - 2026
Protein Powders Strengthen While Cheese and Butter Bounce Off the Bottom
The gap between U.S. and international milk powder values has widened to a chasm and even buyers in Mexico are starting to look elsewhere. After glancing at prices across the border, Mexican buyers stepped up the volume of their bids at the GDT this week. That’s evidence of a downshift in U.S. trade prospects, which were already in decline.
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Prices are high and extremely volatile as the trade assesses how long global milk output will remain depressed and whether demand will hold firm despite the rising cost of dairy.
View reportThe dairy markets are full of Christmas cheer for producers, while dairy buyers are grunting “Bah! Humbug,” into their egg nog. The milkfat market is especially festive and the whey market just keeps climbing.
View reportLower milk production abroad will make more room for U.S. dairy product exports, even if the global appetite for dairy products fades modestly.
View reportFrom the darkest corners of the Board of Trade building, the bears whispered their concerns about the health of the global economy and accelerating inflation. But their warnings were drowned out by the stamping of hooves as the markets shot enthusiastically upward.
View reportChurns made just 159.4 million pounds of butter in October, down 1.6% from a year ago. Stiff competition for cream and supply chain tangles likely kept a lid on output in November as well.
View reportAccording to USDA’s Milk Production report, U.S. milk production dropped to 18.5 billion pounds in October, down 0.5% from October 2020. That’s the steepest year-over-year decline in milk output since March 2019.
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