Thursday Closing Dairy Market Update - Agricultural Prices Increased in March

GENERAL OVERVIEW:

Milk futures closed under pressure, with the Class IV contract showing greater losses than Class III. The agricultural prices used in calculating income over feed increased in all commodities from February.

MILK:

The May and June Class III contract fell nearly $1.00 per cwt over the past three days. During that period of time, the cheese price only declined 1.25 cents. The heightened volatility will remain and may increase as the year progresses. Short-term trading with traders scalping the market for a profit, if realized, moved the futures market outside the realm of the usual. This type of market provides frustration as well as opportunities. The March Agricultural Prices report was released today. The average corn price was $4.27 per bushel, which is an increase of $0.16 from February but down $0.30 per bushel from March 2025. The premium/supreme hay price was $230.00 per ton, up $1.00 per ton from February and down $12.00 per ton from a year ago. The All-milk price was $19.70 per cwt, up $1.40 from February, but down $2.30 from March 2025. The average soybean meal price will be released tomorrow by the FSA, which will then give us the prices to determine the income over feed for the month.

AVERAGE CLASS III PRICES:

3 Month:	$17.68
6 Month:	$18.27
9 Month:	$18.27
12 Month:	$18.14

CHEESE:

It was a little surprising that the block cheese price found more aggressive buying interest rather than seeing the buyers hold for lower prices. The price may trade in a tighter range moving through the spring flush period as increased milk receipts keep the supply of milk sufficient for the cheese vat.

BUTTER:

The bottomless butter market continues to trend lower. It is not that there is a glut of butter, but a sufficient supply. Churns are operating seven days a week, and manufacturers continue to move supplies to the market as quickly as possible rather than letting inventory build at the plant level.

OUTSIDE MARKETS SUMMARY:

July corn closed down 3.00 cents per bushel at $4.7475, July soybeans closed down 1.50 cents at $11.9550 and July soybean meal closed down $4.90 per ton at $318.90. July Chicago wheat closed down 16.25 cents at $6.3675. June live cattle closed down $1.25 at $254.00. June crude oil is down $1.81 per barrel at $105.07. The Dow Jones Industrial Average is up 790 points at 49,652, with the NASDAQ up 219 points at 24,892.

Fluid Milk and Cream - Western U.S. Report 18

In California, milk production is steady. Handlers report marginal changes for April 2026 compared to the prior month. Year over year production is up. For April, some manufacturers report larger than anticipated volumes of milk going into their production facilities. Spot milk loads are available. 

In Arizona, farm level milk output is steady. Manufacturers are securing spot milk loads for their production facilities. 

Milk production varies from steady to lighter in New Mexico. 

Handlers indicate week over week milk output is mixed in the Pacific Northwest. Spot milk loads are not abundant. 

Spring milk production in the Mountain States of Idaho, Utah, and Colorado is stable. Spot milk loads are tighter. Throughout the region, Class I and IV demands are steady, while Class II and III demands are strong. 

The newest milk production report from the National Agricultural Statistics Service (NASS) shows March 2026 milk production increases for Arizona, California, Colorado, Idaho, Oregon, and Utah. Decreases are shown for New Mexico and Washington. 

Stakeholders indicate cream production is meeting needs and spot loads are available. Cream multiples moved higher at the bottom ends of both ranges. Condensed skim milk availability and demand are steady.

Thursday Midday Dairy Market Summary - Butter Moves To a New Low

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	Unchanged
SOYBEAN MEAL:	$4.70 Lower
LIVE CATTLE:	$0.12 Lower
DOW JONES:	718 Points Higher
NASDAQ:	134 Points Higher
CRUDE OIL:	$2.98 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased a penny to close at $1.64 with three loads traded. The barrel cheese price remained unchanged at $1.6150 with no loads traded. The dry whey price declined a penny, closing at 69.75 with two loads traded. Class III futures are 15 cents lower to 3 cents higher. The butter price decreased 2.50 cents, closing at $1.6250 with 20 loads traded. There have been 71 loads traded so far this week. The price moved below the previous low and the lowest price since Feb. 9. Grade A nonfat dry milk decreased 0.75 cent to close at $2.25 with one load traded. Class IV futures are 8-31 cents lower. Butter futures are 3.15 cents lower to 0.47 cent higher. Dry whey futures are 0.65–2.97 cents lower. Cheese futures are 0.10 cent lower to 0.50 cent higher. The March Agricultural Prices report will be released this afternoon. The report will not influence the market.