It was an active day across dairy markets. An early morning GlobalDairyTrade injected optimism with the flagship WMP contract gaining 4.9% to $1.98 per pound. US dairy futures were all moving higher ahead of spot trades and activity in all sessions maintained the positive vibe. Buyers were present across the Class IV complex as well, with both butter and nonfat pushing higher. Nonfat hit $1.20 today – the highest level since late February. Overall, it was a good day for forward-looking dairy margins. Milk moved higher, grains lost ground and livestock contracts hover near contract highs.
Today’s Highlights from Ever.Ag’s Know Your Markets
- This week’s GlobalDairyTrade auction saw most prices climb higher, led by cheddar, up 12.1% to $2.50 per pound. Butter added 4.1% to reach $3.63 per pound (adjusted to 82% butterfat). SMP rose 1.2% to $1.28 and WMP jumped 4.9% to $1.98. From a price perspective, it was a more muted day in Chicago, though trading was heavy. Blocks rose a penny to close at $1.7850 per pound and barrels added just a quarter cent to reach $1.7925. Eighteen lots of blocks and seven loads of barrels traded. Spot butter ticked up a quarter cent to $2.3400 per pound, with 12 lots exchanged. Spot NDM lifted a penny to reach $1.2000 per pound. Four lots traded.
- In March, US outbound cheese volume reached 109 million pounds, down 1% versus a record-high March 2024. Butter exports surged to 13 million pounds, 171% higher year-over-year. Outbound NDM volume rose 1% to 142 million pounds.
- According to USDA’s Dairy Products report, cheese, butter, milk powder and whey production jumped higher on a monthly basis. Combined NDM+SMP output declined 10% (-21 million pounds) from prior-year level, but rose 14% (+25 million pounds) on the month. Total cheese production reached 1.226 billion pounds, up 10% (+109 million pounds) versus February and +1.4% (+16 million pounds) year-over-year. Butter output totaled 229 million pounds, up 13% (+26 million pounds) month-over-month and +9% (+18 million pounds) versus 2024.
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