The Latest: March - 2026
Middle East Conflict Sends Ripples Through Dairy Trade
It has been a dramatic and volatile week, both in and out of the dairy markets. All eyes have been on the developing conflict in the Middle East and analysts have been scrambling to deduce the impact for the dairy market. Outside of drastically reduced dairy demand in the Gulf States, concerns are circulating around two key issues.
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Are dairy producers turning their sights toward expansion? The United States, Mexico, and Canada have reportedly reached a deal to waive the Trump tariffs and it’s likely that Mexico will drop the punitive border tax on cheese. However, the trade headlines came too late to prevent a setback in spot Cheddar.
View reportIt was another wild week on LaSalle Street, as traders focused much of their attention on Pennsylvania Avenue. For now, however, milk output is in decline around the world. Dairy producers can enjoy much higher milk prices even as exports slip.
View reportNew highs! For dairy producers, those words are like the first glimpse of an oasis after four years wandering in the desert. And, with some better pricing in upcoming milk checks to wet their whistle, dairy producers can have some confidence that it’s not a mirage.
View reportThe dairy markets have had a slew of data to digest in the past two weeks, providing plenty of fodder for the bulls. The Global Dairy Trade (GDT) auction kicked things off last Tuesday with a mostly higher performance. U.S. trade data for February echoed the GDT; butterfat and cheese exports impressed, while milk powder shipments stalled. Less milk and more processing capacity is making for a tight milk market in the Midwest despite the spring flush.
View reportConcerns are growing among nonfat dry milk (NDM) buyers that milk powder prices could reach into the $1.15 range if not higher later this year. The market sentiment now is that the longer prices remain in the high 90¢ range this spring, the higher prices could move up later this year. If the higher NDM price levels materialize, they could result in some of the highest-Class IV milk prices in a long time for western dairy producers, which would be much needed good news.
View reportThe U.S. dairy cow herd has been contracting for more than a year, and foreign milk production has fallen flat. At long last, that is translating into higher milk pricing. Dairy producers across the country will be seeing much better milk checks than those they have cashed in recent months.
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