The Latest: November - 2025
Larger Herd Continues to Drive Stronger Output
Milk continues to gush across the United States. In the most recent Milk Production report, USDA pegged October production at 19.47 billion pounds, representing a year over year gain of 3.7%. A larger herd continues to drive stronger output, but the tide may be shifting. For the first time this year dairy producers reduced cow numbers by 6,000 head during October, bringing the national herd to 9.575 million head. Even so, cow numbers are up an astonishing 208,000 head compared to a year ago.
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Dairy producers can live with those prices, but they are certainly uninspiring, especially after several years of hardship.
View reportThe market is still suffering a hangover after over-indulging in October and November and the damage has been done.
View reportDairy markets were not immune, and after a healthy rally last week markets suffered a sizeable setback.
View reportThe steep December selloff was a necessary correction and was not the start of a sustained downtrend. With the exception of butter, dairy demand is outpacing supply and supporting dairy product prices.
View reportCME spot Cheddar barrels dropped to a 10-month low but came roaring back. The powder markets firmed as well.
View reportMilk yields and components remain high while an unsettled market tries to digest the holiday excess.
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