Monday Midday Dairy Market Summary - Milk Futures Post Strong Gains

OUTSIDE MARKETS SUMMARY:

CORN:	5 Higher
SOYBEANS:	14 Higher
SOYBEAN MEAL:	$9.00 Higher
LIVE CATTLE:	$2.67 Higher
DOW JONES:	97 Points Lower
NASDAQ:	39 Points Higher
CRUDE OIL:	$2.10 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 0.75 cent, closing at $1.6525 with one load traded. The barrel cheese price remained unchanged at $1.6150. The dry whey price increased 0.50 cent, closing at 70.25 with no loads traded. Class III futures are 1-36 cents higher, with the July contract moving above $19.00. The butter price decreased 1.75 cents to close at $1.6875 with 18 loads traded. The price initially declined to $1.6800 before buyer interest brought it up from the low. Grade A nonfat dry milk remained unchanged at $2.26 with no loads traded. Class IV futures are 5-31 cents higher. Butter futures are 1.35-4.57 cents lower. Dry whey futures are 0.87-2.00 cents higher. Cheese futures are 0.20 cent lower to 2.30 cents higher.

Monday Morning Dairy Market Update - Overnight Dairy Futures Exhibit Strong Activity

OPENING CALLS:

Class III Milk Futures:	5 to 15 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

There was some trading excitement in the overnight market with both Class III and IV contracts traded. The overnight volume was strong in Class III futures, with the May contract gaining as much as $0.38 and June up $0.37. The May contract had a volume of 220 traded overnight. However, the current bids and offers are below those prices, potentially indicating that the excitement ran its course. The March Cold Storage report should not have triggered the buying interest overnight, as the report was neutral. Milk output remains strong, providing sufficient supply for bottling and manufacturing.

CHEESE:

Cheese inventory in March was below that of March 2025, but supplies are sufficient for demand. Buyers in the spot market have not been very aggressive, as strong milk production will keep cheese production strong. The block cheese price is nearing the top end of the range and may find buyer resistance at that level.

BUTTER:

Traders are expected to exhibit caution in the butter market. The pattern has been that a bounce in price has been short-lived, and the aftermath has been lower prices. It would seem feasible that the current butter price would generate strong buying interest, but sufficient supplies keep buyers unconcerned over supply.

Friday Closing Dairy Market Update - March Cheese and Butter Inventories Increased

GENERAL OVERVIEW:

Class IV futures had a very strong day with both the May and June contracts closing at new contract highs above $22.00. All contracts through November close at new contract highs. The March Cold Storage report showed all categories posting an increase in inventory.

MILK:

Class IV contracts from May through November closed at new contract highs, supported by the rebound in the butter price. The April contracts showed no change in either class of milk, as the last trading day for the contract will be on Tuesday. The milk production report earlier this week showed strong milk output, with only four of the top 24 states showing production declines from a year earlier. Washington showed the largest decline, with production down 5.8%. New Mexico declined 3.2%, Pennsylvania was down 2.3%, and Illinois was down 0.7%. The largest gain took place in Kansas, with a production increase of 25.4%. It also had the largest cow numbers with an increase of 47,000 head from a year ago. South Dakota has shown double-digit gains for numerous months but slowed to a year-over-year gain of 6.9%. All of the other states showed production increases of less than 6.0%.

AVERAGE CLASS III PRICES:

3 Month:	$17.52
6 Month:	$18.26
9 Month:	$18.43
12 Month:	$18.24

CHEESE:

For the week, block increased 6.75 cents with 43 loads traded. The weekly average price is $1.6190. Barrels increased by 4.00 cents with no loads traded. The weekly average price is $1.5910. Dry whey increased 0.75 cent with two loads traded. The weekly average price is 69.95 cents. The March Cold Storage report showed American cheese inventory increasing 10.7 million pounds from February, totaling 801.6 million pounds. This is 3% below March 2025. Swiss cheese inventory increased 127,000 pounds, totaling 24.8 million pounds. This is 4% above a year ago. Other cheese inventory totaled 575.0 million pounds, up 2.7 million pounds from February, but down 1% from a year ago. Total cheese inventory reached 1.401 billion pounds. This was an increase of 13.5 million pounds, but it is 2% below a year ago.

BUTTER:

For the week, butter increased 1.50 cents with 94 loads traded. The weekly average price is $1.7010. Grade A nonfat dry milk increased 6.00 cents with nine loads traded. The weekly average price is $2.2370. Butter inventory in March increased by 32.8 million pounds, totaling 288.8 million pounds. This was 11% below March 2025.

OUTSIDE MARKETS SUMMARY:

July corn closed down 0.25 cent per bushel at $4.6350, July soybeans closed up 3.75 cents at $11.7850, and July soybean meal closed up $2.60 per ton at $319.10. July Chicago wheat closed down 3.50 cents at $6.1675. June live cattle closed up $1.73 at $245.23. June crude oil is down $1.45 per barrel at $94.40. The Dow Jones Industrial Average is down 80 points at 49,231, with the NASDAQ is up 398 points at 24,837.