Friday Morning Dairy Market Update - Light Trading Activity

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	5 to 7 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	Mixed

MILK:

Trading was not active overnight as there was little to influence price direction. Futures have declined substantially this week, with the potential for some short-covering to take place ahead of the weekend. There is no concern over an unexpected change in fundamentals that would cause traders to liquidate their short positions, but the substantial declines this week have resulted in the market being overdone to the downside. The average soybean meal price for March will be released Friday morning, providing the last price needed to calculate income over feed for the Dairy Margin Coverage program.

CHEESE:

Cheese is expected to remain choppy, with the price remaining in a range. Cheese production is strong, supplying sufficient cheese to the market. Demand is steady, which has kept inventory below that of a year ago. This keeps the upside price potential limited and provides support below the market.

BUTTER:

The butter price remains in a downtrend. It is uncertain as to where support may be found. As long as manufacturers continue to move supplies to the spot market aggressively, buyers will hold back and purchase at lower prices. End users see no reason to be concerned about supplies.

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.