The United States nonfat dry milk (NDM) market recorded a modest price increase on October 8, 2026, with Grade A nonfat dry milk settling at $2.2600 per pound on the Chicago Mercantile Exchange (CME) Group cash market. According to the US Department of Agriculture’s (USDA) Dairy Market News report, the price increased by $0.0050 per pound from the previous close.
The latest movement provides an update on the US dairy ingredients market, where nonfat dry milk serves as an important product for food manufacturers, dairy processors and ingredient buyers. Although the increase was small, spot prices remain an important indicator for businesses monitoring procurement costs and the commercial value of dairy ingredients.
CME Market Records a Modest Increase in Nonfat Dry Milk Prices
The USDA Agricultural Marketing Service reported the latest price through its MyMarketNews platform, under Dairy Market News Report 41, identified by slug ID 1600. The report covered Grade A nonfat dry milk traded in carlot quantities on the CME Group cash market in Chicago.
The recorded price movement was an increase of half a cent per pound compared with the previous trading session. The report did not provide additional grade-specific prices, transaction counts or trading-volume figures, limiting the extent to which broader market momentum can be assessed from this update alone.
Key Nonfat Dry Milk Market Figures
| Market indicator | Reported figure |
|---|---|
| Reporting date | October 8, 2026 |
| Dairy product | Grade A nonfat dry milk |
| Closing cash-market price | $2.2600 per pound |
| Change from previous close | +$0.0050 per pound |
| Trading market | CME Group, Chicago |
| Report publisher | USDA Agricultural Marketing Service |
| Report reference | Dairy Market News Report 41 |
| Reported trading lot size | 41,000â45,000 pounds |
The daily cash-market figures are expressed in US dollars per pound. The USDA also noted that five days of trading information are available through CME Group’s spot call data, offering market participants additional information for reviewing recent price movements.
Importance of Nonfat Dry Milk to the Dairy Industry
Nonfat dry milk is produced by removing most of the water from skim milk. The resulting powder can be stored and transported more easily than liquid milk, making it an important ingredient in domestic and international dairy supply chains.
Food manufacturers use nonfat dry milk in a variety of applications, including bakery products, confectionery, beverages, prepared foods and dairy formulations. It can also be used by processors seeking to standardise milk solids or incorporate dairy proteins and other milk components into finished products.
For dairy processors, drying skim milk into powder provides a way to market milk solids in a form with a longer shelf life and greater flexibility in distribution. This is particularly relevant when production and demand do not align perfectly across regions or throughout the year.
Spot-market prices therefore matter to both sellers and buyers. Higher prices may improve potential returns for processors marketing powder, while increasing procurement expenses for manufacturers that depend on nonfat dry milk as a raw material. The actual impact varies according to purchasing contracts, production costs, product specifications and customer arrangements.
Implications for Dairy Ingredient Buyers and Processors
The October 8 increase was modest and should not, by itself, be interpreted as evidence of a sustained upward trend. A broader assessment would require several trading sessions of data alongside information on inventories, milk production, export demand and purchasing activity.
Dairy businesses can use spot-market updates to review procurement strategies, compare contracted prices with prevailing market levels and monitor changes in ingredient costs. However, a single daily closing price cannot establish whether market conditions are tightening or whether buyers are increasing their orders.
For international dairy businesses, US nonfat dry milk prices are one of several indicators worth monitoring alongside milk powder prices in other exporting regions, exchange rates, transportation costs and trade flows.
The latest CME cash-market report confirms that Grade A nonfat dry milk prices edged higher on October 8. Whether the increase develops into a more sustained movement will depend on subsequent trading activity and the balance between dairy ingredient supply and demand.
For the wider dairy industry, consistent monitoring of powder prices remains valuable for understanding ingredient-market conditions and making informed procurement and processing decisions.
