Milk Prices
Class III futures surged over $1.50 in early May as strong export demand and a wide global price gap sparked renewed strength in U.S. dairy markets.
Global and domestic dairy markets gained momentum Tuesday, with stronger futures, higher spot prices, and a bullish Global Dairy Trade auction lifting sentiment across the board.
Cheese prices strengthened to start the week, led by barrel gains, while Class III futures followed suit and grain markets moved lower.
Strong end-of-week cheese demand lifted both spot and futures markets, with Class III Q3 contracts reaching their highest level in over a month.
Class III futures surged today as spot cheese prices climbed and spring flush boosted milk availability across the Upper Midwest.
Butter prices rebounded sharply, lifting dairy futures slightly, while a new U.S.-Mexico agreement to tighten screwworm border protocols helped ease livestock sector concerns.
Spot butter fell to a new multi-year low, shedding 3.5 cents to close at $2.2400 per pound, a price last seen in December 2021.
Dairy markets were mostly steady today with minimal spot and futures activity, slight gains in Class III milk and NDM contracts, and U.S. corn and soybean planting progressing ahead of the five-year average.
Butter prices fell to their lowest level since early March following USDA’s Cold Storage report, pressuring Class IV futures.
Class III milk futures fell sharply as spot cheese prices dropped and spring flush pressures mounted, while dry whey and Class IV markets held steady.
Lower-than-expected U.S. milk production gave Class III milk futures a boost despite weaker spot cheese prices, as markets weighed export demand, global price gaps, and upcoming cold storage data.
The dairy sector has seen a promising upward trend in milk production that is reflected in the latest U.S. Milk Production Report.
Cheese markets saw strong activity with little price change, while U.S. milk production in March rose 0.9% year-over-year.
Early day buying had May Class III milk touching over $18.50, a level we haven’t seen since late February.
Recent policy shifts have clouded the outlook for the months ahead, introducing demand uncertainty at a time when milk production and components are increasing.
Class III futures climbed over $1 this week, even as spot cheese slipped, with low prices helping to boost demand.
Class III milk futures slipped as barrel prices softened, but steady powder markets and a weaker dollar hint at potential support from export opportunities.
With the May pricing period now underway and futures starting the week at a discount, May cheese and Class III contracts rallied to bridge the gap.
Tariffs have been dominating the news, and the uncertainty of the impact of those tariffs on dairy export demand. The strong exports of butterfat and the difference between the world price and the U.S. price may minimize the impact for that category.
Friday saw most commodities except milk trading green, but today flipped the script, with spot cheese pulling us higher.
Tariff tensions with China sent ripples through the whey market, dragging down spot and futures prices and putting pressure on Class III milk contracts.
While markets responded positively to yesterday’s news of delays, continued pressure on China leaves the future of dairy prices up in the air.
Class III futures saw a strong rebound with significant gains in May and June contracts, while cheese prices edged higher, despite ongoing U.S.-China tariff tensions impacting dairy markets.
Cheese and Class III futures rallied on stronger spot prices, even as rising trade tensions with China and looming tariffs stirred market uncertainty.
After weeks of heavy spot trade, Monday brought a calmer, mostly green day to dairy markets, with cheese leading the rebound despite ongoing tariff tensions and early futures pressure.
Class III milk futures slipped lower Wednesday as China’s 34% reciprocal tariffs sent shockwaves through whey, soybeans, cattle, energy, and stock markets.
There was red almost across the board today as the market finally got a little clarity around tariffs following yesterday’s announcement.
Global price disparities and anticipation surrounding President Trump’s tariff announcement kept the industry on edge.
After yesterday’s muted session, CME cheese markets had a much busier day today.
Technical difficulties delayed the CME spot trade on Monday, preventing a smooth spot trade.