US dairy prices: weekly report

The US dairy market has seen mixed price trends on the CME Group exchange, alongside stable demand for milk and dairy products. As noted by TheCattleSite citing the US Department of Agriculture (USDA) weekly report, key segments of the dairy industry are showing strong demand and supply constraints in certain categories.

Prices for dairy products on the CME

As of 3 April, the market figures for dairy products are as follows:

• Butter (AA): $1.7900 per pound
  • average weekly price — $1.7856 (-0.0299)
• Cheese:
  • barrel — $1.5925 (average $1.5856; +0.0146)
  • 40# blocks — $1.6725 (average $1.6306; +0.0001)
• Skimmed milk powder (Class A):
  • $1,9725
  • average — $1.9450 (+0.0310)
• Dried whey:
  • $0,6875
  • average — $0.6888 (+0.0128)

The butter market

In the US dairy sector, demand for butter remains high in the retail segment in the Eastern and Central regions, whilst in the West it ranges from stable to high. Demand from the catering sector is assessed as moderate or stable.

International demand ranges from stable to high. At the same time, the supply of cream is limited, as a significant proportion of it is used in the production of Grade II and Grade III products.

Butter production:

• is open seven days a week
• Some businesses are not operating at full capacity due to the approaching festive season

Wholesale oil surpluses are recorded within the following range:

• from 2 cents lower
• up to 8 cents above the market price

The cheese market

Cheese production in the north-east is declining as factories prepare for the spring shutdown and divert milk to drying.

Key trends:

• high demand for Cheddar and domestic varieties
• Stocks are rising, but production is not exceeding sales

In the Central Region:

• high milk yield
• A sufficient supply of Class III spot milk ($7–$2)
• cheese production is stable or slightly lower

In the West:

• The high milk yields fully meet demand
• production is stable
• limited spot supply of cheese
• The priority is to fulfil contracts by the second quarter

Domestic demand remains stable, whilst there is strong interest in mozzarella exports.

The liquid milk market

Milk production in the US is stable or on the rise. In a number of regions, the spring production peak has begun, ensuring sufficient supply.

Key figures:

• the content of the components has fallen, but remains higher than last year
• Demand for Grade I milk is low due to the school holidays and the festive season
• demand for grades II and IV is stable or high
• Class III production — stable or negligible

Spot prices for Grade III milk:

• from $7 to $2

In addition:

• demand for powdered milk is very high
• the volume of skimmed condensed milk is increasing
• Spot prices for it range from the current level to +$0.30 above the Grade I price

Cream cost factors:

• East — 1.15–1.42
• Midwest — 1.10–1.30
• West — 1.06–1.28

The market for dried dairy products

Prices for dried dairy products are generally rising:

• Skimmed milk powder (SMP): significant growth across all regions
• Dried buttermilk: price rises across the country
• Whey powder: mixed trends depending on the region
• Lactose: rising prices amid limited supplies
• Whey protein concentrate: a 34% drop at the lower end of the range
• Whole milk powder: raising the upper price limit
• Casein:
  • Acid casein— growth in the upper range
  • Rennet casein— no change

Limited supply and difficulties with spot deliveries are supporting the market.

Organic dairy products

The latest reports from Pennsylvania and Vermont for January 2026 showed an increase in the weighted average prices of organic liquid milk.

Additional trends:

• an increase in the consumption of organic whole and skimmed milk in February
• month-on-month increase in organic milk exports
• at the same time, a year-on-year decline in exports since the start of the year

In Europe:

• Prices for organic milk have risen in France
• have fallen in Austria, Germany and Bavaria

Source: TheCattleSite