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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Many 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.
View reportMilk production growth was strong across most of the United States in December, with the West and the Midwest posting particularly convincing figures. A dramatic expansion in the national dairy herd drove much of the increase.
View reportEven with a short week, there was no lack of action in the dairy markets. However, the market took the news poorly with most dairy commodities moving decisively downward.
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