There was red almost across the board today as the market finally got a little clarity around tariffs following yesterday’s announcement. While it’s still too soon to know how our global trading partners will react, the market was shocked by the size of some of the tariffs. While negotiations on trade continue, one thing rings true domestically: Milk is readily available, with Midwest spot milk falling to a midpoint of -$3.25. With production in growth mode and the demand side of the equation in question, the dairy markets may remain under pressure for the time being.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets slipped lower as trade and tariff worries added anxiety. Blocks dropped 3.5 cents to $1.6300 per pound, while barrels closed at $1.6600, $0.0375 lower. Four lots of blocks and three of barrels traded. Spot butter dipped a penny to $2.3300 per pound, with nine loads exchanged. The CME NDM market eased a half cent to $1.1675 per pound and six lots changed hands.
- Spot milk prices dropped this week as flows increase seasonally. USDA reported spot milk in the Upper Midwest at a midpoint of $3.25 per hundredweight under class. That compares to -$1.75 last week, -$3.25 last year and -$4.20 on the five-year average. Cream continued to tick higher, but remained well below the historical average. USDA pegged multiples in the Upper Midwest at 114, up from 110 last week, but down from 122 last year and 123 on the five-year average.
- US cheese exports were strong in February, with 99 million pounds leaving the country. When factoring in last year’s extra day for leap year, average daily shipments jumped more than 7% versus 2024. Despite the overall increase, volume to Mexico dropped 9% year-over-year. Meanwhile, lower butter prices stimulated interest in US product. Butter exports totaled 12 million pounds, up 126% on the year and the largest US butter export total since November 2022.
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