Global Dairy Supplies Are On The Rise
- ZISK
- Aug 11
- 1 min read
The T.C. Jacoby Weekly Market Report Week Ending August 1, 2025
With most of the major dairy exporters – and especially the United States – in growth mode, global dairy supplies are on the rise. In the first few months of the year, combined milk output among the top five dairy exporters fell short of 2023 volumes. But since April, when the U.S. shifted into a higher gear, milk production among these major players has set new highs.
The dairy markets are showcasing the colorful – and somewhat morbid – Wall Street adage: “Even a dead cat will bounce if it falls from a great height.” This week milk futures managed a modest recovery, briefly interrupting the dramatic downtrend. Most Class III futures contracts added just a few cents, but the September contract rallied 21ȼ to $17.73 per cwt. Most Class IV futures climbed roughly a nickel. The September contract closed at $19.10.
Amid rapid growth in milk production and more than enough processing capacity to turn that milk into storable dairy products, American dairy product prices must stay low enough to attract international buyers. Domestic demand for cheese, butter, and milk powder is hohum. Exports are increasingly vital. The weak dollar and lack of retaliatory tariffs have helped to keep U.S. dairy front and center on the global stage. But competition may be heating up.
Aug 4, 2025
Comments