The Latest: June - 2026
The Weight of Heavy Milk Production
The dairy markets are falling under the weight of heavy milk production. CME spot nonfat dry milk (NDM) dropped 4.5ȼ this week to $2.045 per pound. Every NDM futures contract settled south of $2, far below the spot market’s spring peak at nearly $2.30. Spot whey powder fell 3ȼ this week to 67ȼ, its lowest price since late March. CME spot Cheddar blocks slipped 0.25ȼ to $1.4725, a fresh three-month low. But butter bucked the trend. It climbed 2.5ȼ to $1.6925.
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Over the past year, the dairy markets have exhibited extreme volatility, adjusting to drastic shifts in both supply and demand. Consumer behaviors are shifting back towards something that resembles pre-pandemic times.
View reportWith a sense of normalcy restored, and the spring flush rapidly approaching, milk is still plentiful and has resulted in copious dairy product production.
View reportMany plants are keeping busy schedules as they attempt to compensate for last week’s closures, while displaced spot loads of milk and cream continue to search for homes.
View reportThough it will take some time for the impacts of the weather to become fully appreciated, a reduction in milk production and increase in culling is likely in the coming weeks.
View reportInventories for most dairy products remain heavier than typical for this time of year. Nevertheless, the situation is evolving and tighter markets could be on the horizon.
View reportPrices fluctuate as new market information collides with the realities of supply and demand. Reports indicate that milk production continues to exceed prior year levels and is growing seasonally as spring approaches.
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