The Latest: October - 2026
Tidal Wave of Milk
The dairy markets are awash in a tidal wave of milk. USDA’s latest Milk Production report showed that August milk output was notably higher than previously thought, and the agency pegged September milk production at 19.4 billion pounds, up 2.6% year over year, far higher than LaSalle Street expected. The recent ups and downs in the dairy markets did not diminish dairy producers’ appetite for growth. They added 26,000 cows last month, lifting the dairy herd to 9.74 million head.
View Report
After much volatility, the boundaries are becoming clearer. The spread between blocks and barrels narrowed, adding another layer of uncertainty to the already complex cheese markets.
View reportAfter 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 report