The Latest: October - 2025
Falling International Prices Spooked the U.S. Powder Market
Falling international prices spooked the U.S. milk powder market. At this week’s Global Dairy Trade (GDT) Pulse auction, skim milk powder (SMP) prices fell 0.7% from last week’s GDT event, dropping to a 13-month low of $2,530 per metric ton, equal to nonfat dry milk (NDM) at around $1.22 per pound. Whole milk powder prices slipped 0.9% to a one-year low. Manufacturers in Europe and Oceania are flush with milk, and dryers are running hard.
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U.S. milk output was not as strong as anticipated in December. Perhaps more importantly, the dairy herd is smaller than previously thought, and it’s getting smaller by the month. And yet, there is more than enough milk.
View reportThe bears were out in force this week, pressuring the dairy markets to new lows as supplies accumulated and global demand prospects dimmed. Though risks and challenges persist, milk production has generally been strong across the U.S.
View reportThe cheese markets came charging out of the gates on Monday. The strong start left some market participants scratching their heads. Cheese exports are still strong but none of that gave the cheese markets the energy they needed to maintain their early week sprint.
View reportThe cheese markets got off to a particularly rough start, with big losses both Tuesday and Wednesday. But after a few nights of better rest and healthier habits, they recovered well. Cheese prices are near year-ago levels, suggesting that demand has kept pace with strong production.
View reportThe butter market began the year at a relatively lofty height, suffered a few spectacular setbacks, and then climbed anew. It spent an unprecedented 57 trading sessions at $3 or above and set a new all-time high of $3.2675 per pound in early October.
View reportCME spot Cheddar blocks dropped and barrels fared even worse. Cheese output remains strong, and there are fears that demand will no longer keep pace.
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