Dairy Markets Dramatic Swing
It was a wild week on LaSalle as the dairy markets swung dramatically. After dipping to multi-year lows in recent weeks both cheese and butter spot values found traction at the CME. Meanwhile, dry whey continued its upward campaign, rising to a new record high. Only nonfat dry milk prices retreated, though they remain very strong compared to historical standards.
Despite the overall bullish moves this week, several fundamental factors are still casting a shadow over the markets and may push back on prices in the near future. Perhaps most importantly, milk production remains plentiful. While the rate of growth appears to be slowing amid mounting profitability pressures, the national dairy herd is still at its largest size since the 1990s. Growth in the U.S. is echoed across the world as cumulative output across the top five global dairy exporters was up 2.9% between January and August of this year.
October 19, 2026
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