The USDA gave a little more perspective on dairy demand in its November Dairy Supply and Utilization report. As suspected, cheese demand was down, totaling 1.2 billion pounds, down 1.8 percent from November 2023, although year-to-date demand was up 1.0 percent. American cheese demand was down 3.7 percent.

Domestic cheese demand totaled 1.1 billion pounds, down 2.1 percent. Exports were positive for the first time in five months, according to HighGround Dairy, and hit 87.1 million pounds, up 2.4 percent from a year ago, and up 17.2 percent YTD.

The butter data was encouraging. Disappearance totaled 248.2 million pounds, up a whopping 23.1 percent from a year ago. Domestic usage hit record 241.5 million pounds, up 21.8 percent. Exports were up for the seventh time in eight months, says HGD, and totaled 6.7 million, up 97.1 percent from 2023.

Unfortunately, nonfat dry milk and skim milk powder utilization came in at 163.9 million pounds, down 21.9 percent from a year ago. Domestic usage was down 27.2 percent and exports were down 19.7 percent. Year-to-date totals were the worst since 2012, according to HGD.

Dry whey utilization totaled 59.1 million pounds, down 18.8 percent from a year ago, the largest year-on-year decline since March 2019, says HGD, and its smallest November volume on record with data back to 2011. Domestic consumption was down 32.3 percent, lowest value in 2024 so far, and exports were down 2.2 percent, as buying interest moves to Europe in search of cheaper product, according to HGD.

It was an historic week as the nation memorialized civil rights leader Dr. Martin Luther King and inaugurated its 47th President, Donald Trump. The markets were closed Monday but cash block cheese plunged 11 cents the next day, to $1.7750, lowest since Dec. 11, 2024. It climbed back to $1.82 Thursday morning as traders were anticipating Friday afternoon’s December Milk Production and Cold Storage reports. I’ll have complete details next week. The barrels were trading Thursday at $1.82. Friday’s closings saw both at $1.89 per pound.

Midwest cheesemakers told Dairy Market News that demand is either holding steady or improving somewhat noticeably since late 2024. Curd, barrel, Cheddar, and Italian style cheesemakers in the region reported steady to bullish demand. Some suggest that international cheese prices, currently above domestic values, are going to “keep a limit on market bears,” says DMN. “Others, expect near- to mid-term bears to persist as cheese volumes are expected to increase with more production coming online in the region.” Milk availability for cheesemakers was a bit heavier than the previous week, as some plants were down for partial or full days over the weekend and early in the week.

Mid-week spot milk prices ranged $1-under to Class III. Most were at Class III. Last year, they ranged $1-under to $1-over Class, according to DMN.

Cheese production varies from steady to strong in the West. Seasonally strengthening milk production in the region is generally providing more milk for Class III manufacturers. Cheese manufacturers continue to have good demand for Class III milk. Some report tight spot load availability of domestic and foreign type cheeses. Demand for cheese from domestic and international buyers is stronger. Domestic prices are favorable for international buyers, says DMN.

Cash butter had fallen to $2.5125 per pound Thursday, lowest CME price since Dec. 19, 2024, after closing Friday at $2.53.

Churning was mostly busy this week as plants focused on building stores for upcoming seasonal needs. There were some minor plant slowdowns reported in the southern central states, but processing was generally active. Cream availability has balanced some since the glut during the holiday weeks, but it remains affordable for butter makers. Cream multiples are ticking higher in some areas, but are holding steady with previous weeks for the most part. Bulk butter is accessible, while demand is somewhat steady with previous weeks. Market tones are “quiet to stable,” says DMN.

Cream volumes are plentiful in the West and multiples on the low end were again below flat market, according to DMN. Some manufactures reported there have been more cream offers than homes for what is typical thus far into January. In some cases, butter manufacturers are bringing in offered excess cream for their churns. Butter production varies from steady to strong. A few manufacturers stated that bulk butter production specifically, was busier in January 2025 compared to January 2024. Demand for butter is mixed, according to DMN.

Grade A nonfat dry milk lost 2.50 cents Tuesday, slipping to $1.3475, lowest since Oct. 3, 2024, but closed Thursday at $1.3525, following its Friday finish at $1.3725.

Dry whey dropped 3.75 cents Wednesday, dipping to 70 cents per pound, lowest since Nov. 26, 2024. It was unchanged Thursday after finishing Friday at 73.75 cents per pound.

Powder, cheese, and butter pulled the second Global Dairy Trade auction of 2025 higher. Tuesday’s weighted average was up 1.4 percent, following a 1.4 percent decline on Jan. 7, and a 2.8 percent drop on Dec. 17. Volume fell to 61.3 million pounds, down from 66.5 million on Jan. 7, and was the lowest since July 16, 2024. The average metric ton price, crept up to $4,146 U.S., up from $4,029 on Jan. 7.

Whole milk powder led the gains, up 5.0 percent, after falling 2.1 percent on Jan. 7. Skim milk powder was up 2.0 percent, following a 2.2 percent decline.

Cheddar was up 2.8 percent, after a 1 percent rise, while GDT Mozzarella was off 0.3 percent. It saw a 3.6 percent jump on Jan. 7. Butter was up 2.2 percent, after a 2.6 percent rise. Anhydrous milkfat was down 7.8 percent, after dropping 1.6 percent, and lactose was off 0.8 percent, following a 2.4 percent decline last time.

StoneX says the GDT 80 percent butterfat butter price equates to $3.0905 per pound U.S., up 7.5 cents from Jan. 7, and compares to CME butter which closed Thursday at $2.5125. GDT Cheddar equated to $2.1981, up 5.4 cents, and compares to Thursday’s CME block Cheddar at $1.82. GDT skim milk powder averaged $1.2378 per pound, up from $1.2166. Whole milk powder averaged $1.8089 per pound, up from $1.7255. CME Grade A nonfat dry milk closed Thursday at $1.3525 per pound.

Analyst Dustin Winson reported “North Asia, which includes China, increased market share of GDT volume from both last event and last year. Whole milk powder purchases by the top two buying regions, North Asia and SE Asia, were strong, rising over last year’s levels. European purchases were also strong, rising from last event and last year.”

Speaking of China, December dairy imports were much stronger than expected, according to StoneX. Milk equivalent imports were up 30.6 percent from December 2023, and compared to StoneX forecast of flat to up 5 percent.

Broker Dave Kurzawski stated in the Jan. 27 “Dairy Radio Now” broadcast that some of the product they thought would clear in November got pushed into December, but this bucks the trend of late. Year-to-date imports were still down 7.6 percent however.

Skim milk powder imports were up 42.1 percent, while whole milk powder was up 110.9 percent. YTD imports were still down 33.5 percent and 4.6 percent respectively.