Markets were in a waiting mode today, anticipating USDA’s June Milk Production report and expecting 2.0-2.5% growth. Futures seemed to take a breather, with not much price or trading action leading up to the report. Spot butter continued the slide lower amid below-average cream prices and expectations for significant milk production increases. Despite the lower spot action in butter, futures rallied in 2025 to expand the premium to spot as the active export market keeps demand historically high.
Today’s Highlights from Ever.Ag’s Know Your Markets
- The CME butter market dropped again, closing at $2.4775 per pound, a loss of $0.0225. Five lots changed hands. Spot dry whey slipped to $0.5475 per pound, 1.5 cents lower, with one lot exchanged. Spot NDM ticked up just a quarter cent to $1.3025 per pound, while CME cheese markets were unchanged for the second day in a row.
- According to USDA’s June Milk Production report, US milk output jumped 3.3% year-over-year, ahead of expectations and the biggest yearly increase since 2021. After struggling with HPAI, California returned to growth, with production up 2.7% versus 2024. USDA also revised the May data, showing production up 2.3% on the year versus +1.6% in the previous report.
- Milk powder prices rose again at this week’s GlobalDairyTrade Pulse event. WMP advanced to $1.79 per pound, up 1.5% versus the latest main auction, while SMP rose to $1.30 per pound, 2.0% higher compared to last week’s GDT.
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