
The Latest: July - 2025
U.S. and China Relationship Remains Precarious
U.S. dairy trade data for May was released, showing mixed performance. U.S. dairy exports to China plummeted during the month, reflecting the intensifying trade conflict between the two countries. Low protein whey products were the most affected as the dramatic drop in Chinese demand caused year over year U.S. exports of dry whey, modified whey, and whey protein concentrates with protein levels under 80% to fall by 19.9%, 16.5%, and 35.6%, respectively.
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Although the bulls did not assert themselves this week, the bears are not in charge. Aside from the break from the extreme heat, all the factors that propelled the markets to their recent peak remain in play.
View reportDairy producers would surely prefer the energy of the early-stage rally to today’s more plodding progress. The plateau is a sign of healthy markets at work.
View reportAlmost all products rallied at the Global Dairy Trade (GDT) auction on Tuesday. However, in Europe dairy product prices continue to slip. Heat is also taking a noticeable toll on milk yields and components in much of the United States.
View reportAfter some late-June fireworks, the dairy markets fizzled in the first two weeks of July. The mercury has climbed, the storms have abated, and the grain markets have climbed. Farmers were initially relieved to have a break from the spring deluge, but now – with the exception of those in parts of Nebraska – they are praying for rain.
View reportThere is no surplus of cheap milk in the traditional cheese states, which has likely slowed production of commodity Cheddar. It’s possible that European vendors don’t have enough cheese in inventory to satisfy foreign demand. If that’s the case, the bulls might take up residence in the dairy pits for a while.
View reportThe cheese markets are heating up, and this time barrels are not left out in the cold. The USDA Cold Storage report reveals the largest April-to-May drawdown on record. Despite lower production in the Midwest and Northeast, milk seems to be widely available. Cheap spot milk has encouraged cheese processors to top up their vats.
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