Milk is Starting to Feel Tight
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- 6 days ago
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The T.C. Jacoby Weekly Market Report Week Ending July 31, 2026
Milk is starting to feel tight. Summer temperatures have reduced milk yields, and USDA reports that “some plants are noting lighter production, with insufficient supply to run full loads.” Fairlife is once again taking as much milk as possible, alleviating the temporary surge in spot milk sales. This week, spot milk changed hands at $1 to $5 premiums in the Central region, the loftiest late-July markups in at least a decade.
By all accounts, milk production remains record large. Dairy-cow headcounts stand at their highest level in decades. Despite the season, processors are dumping some milk in California, where production has overwhelmed local capacity. But elsewhere there are more than enough cheese vats, butter churns, and dryers to absorb summer milk volumes. However, processors are making more dairy products than domestic consumers can absorb, putting pressure on prices. American dairy commodities must remain cheap enough to attract international buyers.
Aug, 3, 2026
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