# Nonfat Dry Milk Rally Leads to Depooling - Dairy Herd

> A rally in spot nonfat dry milk has widened the gap between Class IV and Class III futures, with the May 2026 Class IV contract about $5/cwt above the June Class III contract on May 7. Analysts say this is the largest spread on record and is encouraging some Class IV processors to depool. Depooling could reduce producer milk checks in cheese-centric orders.

- Date: 2026-05-18 · published 2026-05-18T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/19418-nonfat-dry-milk-rally-leads-to-depooling-dairy-herd
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

The wide Class III and IV spread shifts value toward Class IV milk and may pull milk out of pools, lowering blend prices for some producers and raising costs for Class I processors.

## Read by commodity

- MILK: bullish ▲

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/nonfat-dry-milk-rally-leads-depooling

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.