The Latest: April - 2026
The Short Squeeze Continues
The short squeeze continues. Someone – or several someones – desperately need milk powder and they need it now. USDA’s Dairy Market News reports that prices are high enough that most milk powder users “are only buying loads to meet their immediate needs.” But for those that can’t do without, “it is difficult to find loads.” They bid the spot nonfat dry milk (NDM) market all the way up to $2.26 per pound this week, up 6ȼ from last Friday to a fresh all-time high.
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After rocketing higher last week, CME spot Cheddar blocks continued to soar. But, the cheese markets are likely to remain volatile.
View reportThough the bulls made headway, their progress was laborious. Each week they argued that tighter milk supplies and falling cheese inventories should lift prices. Now, the bulls are clearly in charge.
View reportFootball season has arrived, schools are back in session, and cheese demand is excellent. Output is not keeping pace. While Cheddar blocks score fresh multi-year highs, spot butter reached a milestone of a very different sort.
View reportThis weeks rise in cheese prices in an already lofty market are truly impressive. Last week’s Cold Storage report showed an astounding drawdown in cheese inventories, and the spot markets suggest that fresh supplies are tight.
View reportDespite the rough week in the dairy pits, dairy product prices and Class III values in particular will soon find their footing.
View reportThe spot markets have been buoyed by robust near-term fundamentals. However, dairy futures were far from exuberant this week and some new clouds have moved onto the horizon.
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