Milk Powder Market Has Soared
- ZISK
- Apr 1
- 1 min read
The T.C. Jacoby Weekly Market Report Week Ending March 27, 2026
Lifted by strong international prices and low domestic output, the milk powder market soared to a 12-year high. CME spot nonfat dry milk (NDM) leapt 5.25ȼ this week to $1.9225 per pound, its loftiest perch since April 2014, when China was stocking up on milk powder ahead of an anticipated baby boom. Milk powder prices took a small step back at Tuesday’s GDT Pulse auction, but other indications of international prices continued to climb. German skim milk powder (SMP) values are 37% higher than they were when the year began, and spot NDM is 64% higher. U.S. milk powder is clearly uncompetitive in the global marketplace. But that doesn’t matter. Due to massive expansion in other dairy product processing, the U.S. is making significantly less milk powder than it once did. Last year, combined production of NDM and SMP slumped to a 12-year low. January production was the lowest tally for the month since 2011. Dryers are still running light despite the season. Manufacturers consistently tell USDA’s Dairy Market News that output is lower than it was at this time last year and “tight inventories remain the primary factor driving prices higher.” This rally has all the marks of a classic short squeeze. But LaSalle Street doesn’t expect milk powder to stay near $2 for long. NDM futures retreated today, and they stand well below the spot market.
March 30, 2026
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