Weekly USDA Dairy Report Highlights Market Trends and Developments
Source: DairyNews.today
CME Group Cash Markets (12/6)
Butter: Grade AA butter closed at $2.5450, with a weekly average of $2.5285 (+$0.0318).
Cheese: Barrels ended at $1.6900 and 40-pound blocks at $1.7000. Weekly averages were $1.6510 (+$0.0227) for barrels and $1.6745 (-$0.0030) for blocks.
Nonfat Dry Milk (NDM): Grade A closed at $1.3900, with a weekly average of $1.3825 (-$0.0042).
Dry Whey: Extra grade dry whey closed at $0.7100, with a weekly average of $0.7135 (+$0.0268).
Butter Highlights
Post-holiday butter demand remains mixed. While many end-users have secured Q4 inventories, some retailers are still purchasing at current price levels. Cream availability is widespread, except in the Southwest, where supplies are tighter. Weather disruptions, equipment maintenance, and holidays have impacted production schedules. Bulk butter overages range from -2 to +6 cents across all regions.
Cheese Highlights
Cheese production varies across the U.S. Eastern milk supplies remain tight, prompting plants to source from other regions. Retail cheese demand is steady, with mixed foodservice performance. Central region plants report active production but varied milk availability, with spot milk prices ranging from flat to $1 over Class III. Italian-style and cheddar cheeses are seeing steady to stronger demand. In the West, tighter milk supplies have led to mixed production, though inventories remain available for spot buyers.
Fluid Milk Highlights
Milk production remains steady to stronger nationwide, with mixed output trends in California. Southwest spot milk supplies are tighter compared to other regions. Midwest spot prices range from flat to $1 over Class III. Class I, II, and III demands vary from strong to steady, while Class IV remains steady. Ice cream manufacturers in the Midwest have increased cream purchases. Cream multiples for all classes range as follows:
East: 1.17–1.28
Midwest: 1.08–1.28
West: 1.00–1.32
Dry Products Highlights
Nonfat Dry Milk (NDM): Prices were mixed, rising in the Central and East but dipping in the West.
Dry Buttermilk: Prices increased nationwide, driven by strong butter production but mixed drying schedules.
Dry Whey: Prices rose across the U.S., supported by strong demand and limited availability.
Whey Protein Concentrate (WPC 34%): Prices continued an upward trend amid robust demand.
Lactose: Prices were steady to lower, with strong domestic demand.
Rennet and Acid Casein: Prices remained stable as Q1 2025 contracts are being negotiated.
International Dairy Market Insights
Western Europe: Butter prices in late November were 44% higher year-over-year. Skim milk powder (SMP) prices fell 3%, while whole milk powder (WMP) prices rose 13%.
Eastern Europe: Poland opposed the EU-Mercosur trade deal and reported its first bluetongue disease cases in beef cattle.
Australia: October milk production increased 1.3% year-over-year, with gains in key regions offsetting declines in others. Seasonal production (July–October 2024) rose 1.7%.
New Zealand: October export values for milk powder, butter, and cheese rose 16% year-over-year, with fresh milk and cream exports up 14%. Infant formula exports gained 7%, while casein exports fell 20%.
South America: Improving weather conditions supported feed availability and cow comfort, though Brazil’s milk production remains subdued, with potential for recovery in the coming months.
National Retail Report
Conventional dairy ads fell 12% post-Thanksgiving, while organic dairy promotions increased by 15%. Organic sour cream ads surged nearly 1,000% during week 49. Conventional ice cream (48-64 oz) remained the most advertised item, while half-gallon organic milk led among organic products.
The USDA report highlights the dynamic state of the dairy industry, underscoring regional variations and shifting market conditions both domestically and internationally.
Butter: Grade AA butter closed at $2.5450, with a weekly average of $2.5285 (+$0.0318).
Cheese: Barrels ended at $1.6900 and 40-pound blocks at $1.7000. Weekly averages were $1.6510 (+$0.0227) for barrels and $1.6745 (-$0.0030) for blocks.
Nonfat Dry Milk (NDM): Grade A closed at $1.3900, with a weekly average of $1.3825 (-$0.0042).
Dry Whey: Extra grade dry whey closed at $0.7100, with a weekly average of $0.7135 (+$0.0268).
Butter Highlights
Post-holiday butter demand remains mixed. While many end-users have secured Q4 inventories, some retailers are still purchasing at current price levels. Cream availability is widespread, except in the Southwest, where supplies are tighter. Weather disruptions, equipment maintenance, and holidays have impacted production schedules. Bulk butter overages range from -2 to +6 cents across all regions.
Cheese Highlights
Cheese production varies across the U.S. Eastern milk supplies remain tight, prompting plants to source from other regions. Retail cheese demand is steady, with mixed foodservice performance. Central region plants report active production but varied milk availability, with spot milk prices ranging from flat to $1 over Class III. Italian-style and cheddar cheeses are seeing steady to stronger demand. In the West, tighter milk supplies have led to mixed production, though inventories remain available for spot buyers.
Fluid Milk Highlights
Milk production remains steady to stronger nationwide, with mixed output trends in California. Southwest spot milk supplies are tighter compared to other regions. Midwest spot prices range from flat to $1 over Class III. Class I, II, and III demands vary from strong to steady, while Class IV remains steady. Ice cream manufacturers in the Midwest have increased cream purchases. Cream multiples for all classes range as follows:
East: 1.17–1.28
Midwest: 1.08–1.28
West: 1.00–1.32
Dry Products Highlights
Nonfat Dry Milk (NDM): Prices were mixed, rising in the Central and East but dipping in the West.
Dry Buttermilk: Prices increased nationwide, driven by strong butter production but mixed drying schedules.
Dry Whey: Prices rose across the U.S., supported by strong demand and limited availability.
Whey Protein Concentrate (WPC 34%): Prices continued an upward trend amid robust demand.
Lactose: Prices were steady to lower, with strong domestic demand.
Rennet and Acid Casein: Prices remained stable as Q1 2025 contracts are being negotiated.
International Dairy Market Insights
Western Europe: Butter prices in late November were 44% higher year-over-year. Skim milk powder (SMP) prices fell 3%, while whole milk powder (WMP) prices rose 13%.
Eastern Europe: Poland opposed the EU-Mercosur trade deal and reported its first bluetongue disease cases in beef cattle.
Australia: October milk production increased 1.3% year-over-year, with gains in key regions offsetting declines in others. Seasonal production (July–October 2024) rose 1.7%.
New Zealand: October export values for milk powder, butter, and cheese rose 16% year-over-year, with fresh milk and cream exports up 14%. Infant formula exports gained 7%, while casein exports fell 20%.
South America: Improving weather conditions supported feed availability and cow comfort, though Brazil’s milk production remains subdued, with potential for recovery in the coming months.
National Retail Report
Conventional dairy ads fell 12% post-Thanksgiving, while organic dairy promotions increased by 15%. Organic sour cream ads surged nearly 1,000% during week 49. Conventional ice cream (48-64 oz) remained the most advertised item, while half-gallon organic milk led among organic products.
The USDA report highlights the dynamic state of the dairy industry, underscoring regional variations and shifting market conditions both domestically and internationally.
