Thursday Closing Dairy Market Update - Milk Seeks Support

MILK:

Class III milk futures were higher today, closing anywhere from 2 to 17 cents lower, losing some ground after early-day strength. Class IV futures had limited trading volume today, closing unchanged. The January Milk Production report will be released tomorrow. Most traders are expecting to see lower production than last year.

AVERAGE CLASS III PRICES:

3 Month:	$19.40
6 Month:	$19.00
9 Month:	$18.89
12 Month:	$18.76

CHEESE:

Cheese found some support today after a disappointing start to the week, closing 0.2 cents to 1.9 cents higher today. The cash market was mixed, with blocks trading slightly higher and barrels trading 2.25 cents lower. There is still tariff concern, but there is more than a week before the next set of tariffs will be decided for Mexico and Canada.

BUTTER:

Butter futures were mixed today after a great start to the week. With the limited trading in Class IV milk futures, we lacked direction to continue the rally. Most buyers are looking for deals and willing to stock freezers if prices are right, but there will be a tipping point where they can be patient on securing more product.

OUTSIDE MARKETS SUMMARY:

March corn closed 0.5 cents per bushel higher at $4.98, March soybeans closed 13.5 cents higher at $10.4550 and March soybean meal closed up $1.01 per ton at $296.00. March Chicago wheat closed down 6.5 cents at $5.854. April live cattle closed down $0.975 at $193.80. March crude oil is 38 cents per barrel higher at $72.48. The Dow Jones Industrial Average is down 450 points at 44,176 with the NASDAQ is 94 points lower at 19,962.

Thursday Midday Dairy Market Summary - Butter Loses Strength

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	10 Higher
SOYBEAN MEAL:	$0.11 Lower
LIVE CATTLE:	$0.725 Lower
DOW JONES:	637 Points Lower
NASDAQ:	150 Points Lower
CRUDE OIL:	$0.07 Higher

MIDDAY MARKET UPDATE:

The block cheese price was up 0.25 cents settlings at $1.90 with three loads traded. The barrel cheese price slipped by 2.25 cent closing at $1.785 with three loads traded. The dry whey price remained unchanged, closing at $0.5450 with no loads traded. Class III futures are currently trading 1 to 12 cents higher, pulling back from Thursday morning's small rally. The butter price fell 1.75 cents, closing at $2.4225 with six loads traded. Grade A nonfat dry milk is 2 cents lower at $1.25 with one load traded. Class IV futures are anywhere from unchanged to 0.5 cents higher. Butter futures are 0.475 cents lower to 0.575 cents higher. Dry whey futures are 0.275 to 1.575 cents lower.

Fluid Milk and Cream - Western U.S. Report 7

For California, milk production is seasonally strengthening. Manufacturers indicate open processing space is getting tighter as seasonal milk output increases continue to take place, but milk volumes are still comfortable compared to processing capacities. Class I, II, and IV demands are steady. Class III demand varies from steady to lighter. According to the California Department of Water Resources, as of February 18, 2025, statewide precipitation has increased to 1.25 inches above the historical mean compared to 0.16 inches above the historical mean as of February 12, 2025, for the current water year. 

Milk production in Arizona is stronger. Demands for all Classes are steady. 

For New Mexico, farm level milk output is seasonally strengthening. Spot milk availability is somewhat looser. Demands for Class I, II, and IV are steady. Demand for Class III varies from steady to lighter. 

Stakeholders in the Pacific Northwest indicate recent milk production is mixed. In some cases, handlers note milk output as below expectations, and weather as a contributing factor for below anticipated milk volumes. That said, manufacturers also indicate milk volumes are sufficient for processing needs. All Class demands are steady. 

Farm level milk output in the mountain states of Idaho, Utah, and Colorado varies from steady to stronger. Stakeholders convey cow comfort is improving. Manufacturers mostly indicate milk volumes and processing capacities remain in good balance with each other. Class I, II, and IV demands are steady, while Class III demand varies from steady to lighter. 

Cream volumes are generally abundant in the region. Although cream multiples moved higher this week, distressed loads below the prior week bottom end All-Classes range of 0.55 continued to be reported. However, stakeholders also indicate the number of distressed cream loads is lessening. Cream demand remains mixed. A few stakeholders convey some Central region to West region movement of cream loads. Condensed skim milk availability is looser. Condensed skim milk demand is stronger.