# Unexpected Dairy Bull Market Defies Fundamentals - EDairy News English

> Butter, SMP and cheese futures surged in early February 2026 despite rising milk output of roughly 5% in the EU, 4% in the US and 2.5% in New Zealand. The rally was driven by a short squeeze after traders had positioned heavily short.

- Date: 2026-02-06 · published 2026-02-06T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6653-unexpected-dairy-bull-market-defies-fundamentals-edairy-news-english
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Short-covering-driven gains in dairy futures lift milk and dairy protein prices, though the rally may be fragile given the supply backdrop.

## Read by commodity

- MILK: bullish ▲

## Sources

- en.edairynews.com: https://en.edairynews.com/unexpected-dairy-bull-market-defies-fundamentals/

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