The Latest: July - 2026
Milk is Starting to Feel Tight
Milk is starting to feel tight. Summer temperatures have reduced milk yields, and USDA reports that “some plants are noting lighter production, with insufficient supply to run full loads.” Fairlife is once again taking as much milk as possible, alleviating the temporary surge in spot milk sales. This week, spot milk changed hands at $1 to $5 premiums in the Central region, the loftiest late-July markups in at least a decade.
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The bulls continued their leisurely stroll through the dairy pits this week and the milk markets moved higher.
View reportSpring is here. Tankers are lining up at milk powder plants around the nation. A shortage of trucks and drivers is complicating the annual rush to move milk from regions with surplus to regions with spare balancing capacity. Milk powder demand remains strong as whey futures reached 14-year highs early in the week but then retreated.
View reportUSDA announced that it would end the Farmers to Families Food Box program after May, squelching hopes surrounding the government spending that propelled the cheese and Class III markets to unsustainable heights in 2020.
View reportNearly all products gained ground at the CME spot market with the exception of Whey. The other spot dairy products moved decisively upward.
View reportWith milk production expected to stay strong, dairy product production will continue to be robust. This aggressive production threatens to overhang the market unless demand can demonstrate a meaningful and sustained expansion.
View reportCheese manufacturers report that demand has improved from both domestic and international sources. Even with improved demand, supply remains more than ample and inventories are growing.
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