US Nonfat Dry Milk Prices Reach Historical Peak Amid Mixed Dairy Trends
The USDA's May livestock, dairy, and poultry outlook highlighted significant shifts in wholesale dairy product prices between April 11 and May 9, with nonfat dry milk prices rising sharply. The price per pound of nonfat dry milk increased by 30.01 cents, reaching $2.0231. In contrast, butter prices fell by 9.68 cents to $1.6799 per pound, and dry whey prices decreased by 0.43 cents to $0.6415. Cheddar cheese prices experienced a modest increase, with 40-pound blocks climbing by 1.15 cents to $1.6595.
Spot prices for nonfat dry milk at the Chicago Mercantile Exchange (CME) continued their upward trajectory through April and into May, achieving a record daily high of $2.2950 per pound during the week ending May 9. The CME weekly average surpassed the $2.00 mark for the first time during the week ending April 11, maintaining this level through early May.
According to USDA Dairy Market News regional reports published on May 14, demand for nonfat dry milk remains robust, with inventories tight and spot loads for immediate needs limited. Production of nonfat dry milk and skim milk powder from January to March was 6.5% higher compared to the same period in 2025.
Additionally, first-quarter exports of dry skim milk products increased by 4.9% year over year, while domestic consumption surged by 74.3%, compared to the first quarter of 2025. However, stocks of nonfat dry milk at the end of March were 10.8% lower than the previous year.
On the international front, April export prices for butter and Cheddar cheese from Oceania and Western Europe dropped compared to March, yet they remained above U.S. domestic wholesale prices. The export price for dry whey from Western Europe rose in April, also exceeding U.S. domestic prices. Meanwhile, the price of skim milk powder in Oceania increased from March levels but stayed below the U.S. nonfat dry milk price.
