Tuesday Midday Dairy Market Summary - Class III Higher

OUTSIDE MARKETS SUMMARY:

CORN:	10 Higher
SOYBEANS:	17 Higher
SOYBEAN MEAL:	$7.10 Higher
LIVE CATTLE:	$2.575 Higher
DOW JONES:	237 Points Higher
NASDAQ:	141 Points Higher
CRUDE OIL:	$0.07 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1 cent to close at $1.3350 with 8 loads traded. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price was also unchanged, closing at 83.50 with no loads traded. Class III has come off of overnight lows trading now 1 to 11 cents higher. The butter price fell 0.50 cents, closing at $1.3100 with no loads traded. There were 3 unfilled bids and 29 uncovered offers remaining. Grade A nonfat dry milk increased 2.75 cents to close at $2.2475 with 5 loads traded. Class IV futures are 4 cents lower to 8 cents higher. Butter futures are 2.9 to 5.375 cents lower. Dry whey futures have not yet traded today. Cheese futures are 0.10 -- 0.50 cents higher. Nonfat dry milk futures are 1.325 to 3.85 cents higher. 

Tuesday Morning Dairy Market Update - Class III Drifts Lower Overnight

OPENING CALLS:

Class III Milk Futures:	2 to 10 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Higher
Soybean Futures:	4 to 6 Higher
Soybean Meal Futures:	$0.30 to $0.50 Higher
Wheat Futures:	5 to 7 Higher

MILK:

The Global Dairy Trade will take place later Tuesday to give a little more direction as far as price benchmarks for going forward as well as a better picture of world demand. Class IV milk has had little futures trade interest lately while Class III has drifted lower. Nonfat milk found some early strength in the evening trade. Overall, milk production is strong so upside will be limited despite high demand.

CHEESE:

Cheese output totaled 1.25 billion pounds on Monday's Dairy Products report published by USDA. That is 1.4% higher than August 2025. Holiday season is approaching quickly, so there is some optimism for price support as buyers take stock in supplies and plan for the seasonal demand.

BUTTER:

Butter production had an astounding 6.3% increase from August 2025 in Monday's report, totaling 187 million pounds. Nonfat dry milk was up 9.6% while skim milk powder fell a whopping 33.1% from a year ago. Butter should see a seasonal spike in demand in the coming weeks as the holiday baking season approaches.

Monday Closing Dairy Market Update - Product Production Was Mostly Higher Than a Year Ago

GENERAL OVERVIEW:

Class III futures tried to retain earlier gains but showed slight weakness as the day progressed. Class IV futures showed no trading activity. The August Dairy Products report showed butter and cheese output mostly higher than a year ago.

MILK:

There was little excitement in milk futures today. The underlying cash did not provide much reason for price movement. Class IV futures showed no trading activity. Market fundamentals show little reason for butter and cheese buyers to be concerned over supplies. Milk production is increasing seasonally as cow comfort improves. The current milk price and the income received from calves do not leave room for profitability, if there is any at all. Breeding beef to dairy cows is here to stay and may result in lower milk prices for an extended period of time. Cows may not be culled as aggressively as they have been in the past.

AVERAGE CLASS III PRICES:

3 Month:	$15.53
6 Month:	$16.14
9 Month:	$16.49
12 Month:	$16.78

CHEESE:

American cheese output in August totaled 477 million pounds, down 0.9% from August 2025, according to the Dairy Products report. Italian-type cheese production totaled 541 million pounds, up 3.7% from a year ago. Total type cheese output totaled 1.25 billion pounds, up 1.4% from August 2025. Dry whey output totaled 75.1 million pounds, up 8.2%. Lactose production reached 94.9 million pounds, down 1.3%. Whey protein concentrate output totaled 42.8 million pounds, up 4.6%.

BUTTER:

Butter production in August totaled 187 million pounds, up 6.3% from August 2025. Nonfat dry milk totaled 132 million pounds, up 9.6%. Skim milk powder totaled 28.9 million pounds, down 33.1% from a year ago. Regular ice cream production totaled 64.9 million gallons, down 2.3% from August 2025.

OUTSIDE MARKETS SUMMARY:

December corn closed down 0.50 cent per bushel at $4.9725, November soybeans closed up 2.50 cents at $12.8075, and December soybean meal closed down $.40 per ton at $347.10. December Chicago wheat closed up 9.25 cents at $6.9225. December live cattle closed down $1.50 at $219.98. November crude oil is down $2.06 per barrel at $89.05. The Dow Jones Industrial Average is up 91 points at 51,268, with the NASDAQ up 286 points at 27,477.