Falling International Prices Spooked the U.S. Powder Market

Falling international prices spooked the U.S. milk powder market. At this week’s Global Dairy Trade (GDT) Pulse auction, skim milk powder (SMP) prices fell 0.7% from last week’s GDT event, dropping to a 13-month low of $2,530 per metric ton, equal to nonfat dry milk (NDM) at around $1.22 per pound. Whole milk powder prices slipped 0.9% to a one-year low. Manufacturers in Europe and Oceania are flush with milk, and dryers are running hard. Closer to home, downtime at other dairy processors has pushed trucks to dryers, and production is ramping up. USDA’s Dairy Market News describes domestic demand as “steady, while export interest remains light.” The U.S. dollar strengthened this week, making U.S. milk powder exports even less attractive to foreign buyers. CME spot NDM languished, ending the week at $1.1325, down 2.75ȼ from last Friday.

Like a toddler trick-or-treater, the cheese markets started strong, but they ran out of steam in the final stretch. CME spot Cheddar blocks slipped 1.25ȼ to $1.765. Early-week strength sustained Cheddar barrels. They closed today at $1.805, up 3.5ȼ. The divergence reflects a temporary shortage of fresh Mozzarella and Cheddar barrels after several cheesemakers faced unplanned downtime in October.

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November 3, 2025

dairybusiness.com