# Tight Supplies Drive Sharp Gains in Milk Powder Markets | CZ app

> US milk output in August totaled 20 billion pounds, up 2% from a year earlier, with the dairy herd at 9.71 million cows. Nonfat dry milk and whey prices surged on limited availability while cheese and butter weakened for a fourth straight week.

- Date: 2026-09-30 · published 2026-09-30T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/5028-tight-supplies-drive-sharp-gains-in-milk-powder-markets-cz-app
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Tight protein supplies lift skim and whey ingredient prices, while ample milkfat and cheese supplies keep dairy-based values under pressure.

## Read by commodity

- DDGS: neutral
- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2026-09-30 | 1 | -7.2% | -7.7 | Cheese weakening for a fourth straight week amid 2% higher output, with a larger herd, pressures Class III, which is driven by cheese and whey, though strong whey and NDM partly offset. |
| MILK | 2026-09-30 | 5 | -7.4% | -3.0 | August output rose 2% year on year with a larger herd, and cheese and butter weakened for a fourth straight week, which directly pressured Class III (cheese-driven) values. |
| MILK | 2026-10-02 | 5 | -7.3% | -2.9 | Output up 2% year over year and a larger herd, with cheese and butter weak for a fourth straight week, point to supply-driven pressure on Class III. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2025-12-18 | [Dairy Market Outlook: Milk Supplies Steady, Prices Ease in 2026](https://feedsoft.ai/events/21495-dairy-market-outlook-milk-supplies-steady-prices-ease-in-2026.md) | -0.4% | -6.9% |
| MILK | 2026-09-01 | [Herd Growth, Protein Demand Drive Milk Gains - NMPF](https://feedsoft.ai/events/17494-herd-growth-protein-demand-drive-milk-gains-nmpf.md) | -3.4% | -3.4% |
| MILK | 2026-07-24 | [Milk, Dairy and Grain Market Commentary](https://feedsoft.ai/events/18526-milk-dairy-and-grain-market-commentary.md) | -0.8% | +5.5% |
| MILK | 2025-08-22 | [Milk, Dairy and Grain Market Commentary](https://feedsoft.ai/events/23333-milk-dairy-and-grain-market-commentary.md) | -0.6% | +1.6% |
| MILK | 2024-12-10 | [Global Dairy Market Navigates Tight Butterfat & Rising Milk Output](https://feedsoft.ai/events/26971-global-dairy-market-navigates-tight-butterfat-and-rising-milk-output.md) | -0.7% | +7.9% |

## Sources

- czapp.com: https://www.czapp.com/analyst-insights/tight-supplies-drive-sharp-gains-in-milk-powder-markets/

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