Milk Prices
U.S. cheese exports got off to a strong start in 2025, with outbound volumes totaling 103 million pounds in January, up 22% (+18 million pounds) on the year.
Cheese and butter are clear deals in the export space — but some traders indicate that tariff uncertainty has given them a reason to pause on what would normally be lucrative purchases.
Dairy prices have been under pressure from lower demand and future demand uncertainty. Tariffs have cast a bearish cloud over the market. The first lab-grown milk without a cow has been successfully produced.
U.S. tariffs are in full effect with Canada, Mexico and China, contributing to the already heavy atmosphere.
Tariffs set to take effect tomorrow may have contributed to market movement, while increased cheese production capacity continues to weigh on the outlook.
After what had been a pretty quiet month, the spot cheese market finished February with a thud.
The on-again, off-again rollercoaster in terms of trade and tariff headlines continued today, following an early morning post from President Trump.
Class III futures are still trading at a discount to current spot prices, indicating an expectation of a significant spot market break.
Class III futures tumbled further, with the March contract down 31 cents to $18.70 per hundredweight and Q2 futures settling at $18.33, a 23-cent loss.
Both domestic and foreign buyers step back from potential trade war.
Coming off Friday’s January Milk Production report, which was lower than expected, dairy markets largely moved lower this morning.
Today’s USDA Milk Production report will likely set the tone for the week ahead.
Dry whey and nonfat dry milk prices are under pressure. This is having a significant impact on the potential for milk prices.
Cheese futures experienced strong activity, posting gains across the forward curve.
Producers are challenged paying the bills with the lack-lusting prices that have shown up on milk checks this summer. Dairy financial leaders share tips on what to do and not to do to survive tough financial times.
Today, futures reacted to strong offers on the spot auction for block cheddar cheese, which had been a point of strength for seasonally high cheese prices.
Dairy markets weren’t feeling the love today, with both Class III and Class IV mostly moving lower.
The softness in butter continues to line up with anecdotal reports that butterfat levels are high and cream is available
Class III futures started the day 10-20 cents lower in the nearby contracts before a positive spot cheese auction brought them up on the day.
U.S. milk production is not off to a record-setting start now that 2025 is underway.
The dairy cattle market is currently experiencing an unprecedented surge in demand, creating a bustling atmosphere in the industry. As the competition heats up, market players are closely observing what is currently trending – is it beef-on-dairy calves or the traditional dairy replacements and fresh cows?
The CME butter market rebounded off its recent lows, climbing to $2.4300 per pound, gaining a nickel.
Much like the Philadelphia Eagles’ dominant Super Bowl victory, the cheese market put up a strong performance today, with blocks and barrels climbing higher in the spot session.
Class III futures tumbled today, erasing the week’s stronger activity following a weaker spot session.
U.S. cheese exports surged ahead in December, totaling 96.7 million pounds.
As the industry braces itself for a tumultuous road ahead, it is crucial for stakeholders across the board to engage in constructive dialogue and seek resolutions that protect the backbone of rural America – our dairy farmers.
Class III futures were on a roller coaster with back-and-forth tariff news.
As we venture further into 2025, the dairy industry faces significant challenges and opportunities. Phil Plourd, the President of Ever.Ag Insights, highlights three pivotal stories shaping the market landscape this year: exports, milk production growth and consumer demand.
Ramped up conversations around possible 25% tariffs on Mexico and Canada plus 10% tariffs on Chinese goods sent the cheese market sharply lower last night and weakness continued through today’s session.
Dairy cow slaughter rates are well above prior-year levels. For the week ending January 18, culling totaled 58,000 head, up 13.5% on the year.