Global Dairy Markets ā Class III milk prices in the U.S. have experienced a sharp rally in May, fueled by strong domestic and international demand for cheese and whey, according to a market update from Dairy Herd Management.
In April, milk output rose by 1.5% year-over-year, driven largely by production growth in the Southwest U.S., setting the stage for stronger commodity movement. The rally was led by spot cheese prices, which climbed to:
- š§ Block cheese: $1.8975/lb
- š§ Barrel cheese: $1.8200/lb
This uptick has significantly strengthened Class III milk prices, a key benchmark for milk used in cheese production.
š Demand Boom Driving U.S. Dairy Exports
International buyers are growing in their appetite for U.S. cheese and whey, bolstering export numbers and enhancing price performance. The U.S. dairy industry continues to benefit from shifting global consumption patterns, with expanding markets in Asia and Latin America.
However, Class III milk futures have shown some volatility, impacted by broader economic factors and speculative pressure. The long-term outlook remains bullish due to strong demand fundamentals.
āTight cheese supplies and robust global demand are currently powering the U.S. dairy export engine,ā noted a Dairy Herd analyst.
