Fluid Milk and Cream - Western U.S. Report 50

California handlers report steady or lighter week over week milk production. Some manufacturers note milk intakes are slightly below anticipated volumes for the first part of the month. December 2025 year over year milk production is up significantly. Some dairy producers note fat components continue to be strong. Stakeholders convey balancing plants continue to run full schedules and homes are being found for spot milk loads. 

Farm level milk output in Arizona and New Mexico is generally steady. 

Pacific Northwest handlers note warmer than typical winter temperatures thus far are contributing to steady milk production. Manufacturers convey milk intakes are at anticipated volumes. Dairy commodity production facilities that started receiving milk deliveries as of this year continue to gear up towards running at full capacities. 

Week over week milk production is mixed in the mountain states of Idaho, Utah, and Colorado. Some stakeholders note tighter spot milk load availability. All Class demands are steady throughout the region. 

Plenty of cream is available to cover demands. Reported cream multiples are lower for week 50. Condensed skim milk demand and availability is steady.

Friday Midday Dairy Market Summary - Block Cheese in Demand

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	14 Lower
SOYBEAN MEAL:	$0.02 Lower
LIVE CATTLE:	$0.60 Lower
DOW JONES:	168 Points Lower
NASDAQ:	328 Points Lower
CRUDE OIL:	$0.04 Higher

MIDDAY MARKET UPDATE:

The block cheese price moved slightly above the new low for the year set Thursday, with the 0.5-cent increase in the price closing at $1.35 with an astounding 28 loads traded. The barrel cheese price remained unchanged at $1.4125 with no loads traded. The dry whey price increased 0.5 cents at 76.50 cents with one load traded. Class III futures are 2 to 50 cents higher over the noon hour. The butter price remained unchanged at $1.48 with no loads traded. Grade A nonfat dry milk decreased 0.50 cent, closing at $1.16 with one load traded. Nonfat dry milk is currently trading anywhere from 0.025 cents lower to 0.95 cents higher. Class IV futures have not yet traded for the day. Butter futures are 0.55 cent lower to 0.025 cents higher. Dry whey futures are mixed from 0.275 cents higher to 0.25 cent lower. Cheese futures are 0.2 to 5.4 cents higher.

Friday Morning Dairy Market Update - Traders Wait For Price Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	7 to 10 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	2 to 3 Lower

MILK:

Class III milk futures have remained in a sideways range with limited reason for strength. Futures have held fairly well despite the continued weakness of the block cheese price. Class IV futures have seen a similar pattern with less activity and limited volatility. The market remains bearish with little potential for strength for possibly the next few months. Milk production will remain strong, and demand will need to hold to keep prices from further weakness. Seasonally, demand slows after the holiday season, which could indicate further price weakness may be coming. Traders will be cautious ahead of spot trading as further weakness in block cheese may be seen.

CHEESE:

Further weakness is expected for the block cheese price. The slight decline on Thursday may continue as buyers hold back and purchase on an as-needed basis while manufacturers continue to move supply to the market to limit inventory growth.

BUTTER:

The butter price is expected to hold steady and show minor strength moving through the holiday season. However, there is little reason to believe the price will see much upside potential. Churns are running full weekly schedules, keeping the supply of butter readily available. The inventory is potentially decreasing at a slower pace than usual during this time of year.