US Nonfat Dry Milk Extends Decline as Midwest Heat Supports Cheese and USMCA Review Clouds Trade
Updated
Updated · czapp.com · Jul 9
US Nonfat Dry Milk Extends Decline as Midwest Heat Supports Cheese and USMCA Review Clouds Trade
1 articles · Updated · czapp.com · Jul 9
Summary
Nonfat dry milk led a mixed U.S. dairy market lower last week, with CME prices falling steadily as weak domestic and export demand forced traders to search for a floor.
Midwest heat began tightening milk production in the Central region, reducing cow comfort and expected component levels, which supported cheese even as blocks rose and barrels slipped.
Butter softened on lighter holiday buying and temporarily higher cream availability, though the same heat was starting to curb butterfat production while churns kept building seasonal baking inventories.
Lactose supplies were sold out through the third quarter and whey protein concentrate 34% was committed through year-end, reflecting manufacturers' focus on higher-value proteins.
USMCA uncertainty added a longer-term risk: the U.S. opened an annual review instead of extending the pact, leaving trade with Mexico and Canada—key dairy export markets—without immediate disruption but with a clouded outlook.