The Latest: May - 2026
Nonfat Dry Milk is the Belle of the Dairy Ball
Nonfat dry milk (NDM) rose to fresh record highs this week. On Thursday, the spot price hit an all-time peak of $2.295/lb. though the price dipped a half cent on the final day of trading. By the conclusion of Friday’s spot session, NDM was up 2.75¢ from last week. While elevated NDM price levels have provided an encouraging lift to Class IV milk prices, they have also made U.S. milk powder uncompetitive compared to other international suppliers and have severely limited the opportunity for U.S. manufacturers and traders to mint new export deals.
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Those markets that gained ground last week gave some of it back this week, while last week’s losers are now on the rise.
View reportCME spot Cheddar blocks soared to the largest single-session increase on record. Barrels followed reluctantly and the block-barrel spread gaped. The market is on tenterhooks to see whether blocks will move lower or barrels higher to close the gap.
View reportDairy producers are doing their best to top up the bulk tank while the futures promise decent Class III values. Cheesemakers are going strong, and they report that cheese is moving apace.
View reportThe cheese markets stand well below the summer peaks but have made a surprisingly quick return to the lofty elevations from a month ago. Despite the impressive uphill sprint, the trade is clearly questioning the cheese market’s stamina.
View reportSteep losses at mid-week and a Friday rebound added up to net gains across the board.
View reportCheddar markets lost a lot of ground, but tried to put up a fight. Barrels regained some territory signaling that the market is fumbling about for fair value.
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