GENERAL OVERVIEW:
Class III futures were lower. Class IV futures took quite a hit with substantial losses in July through September contracts. April dairy exports remained strong.
MILK:
The day was not kind to milk futures, with Class IV contracts showing substantial weakness. Nonfat dry milk has been unable to find support with the price moving to the lowest level since March 11th. The price has fallen $0.55 since it peaked on May 7th. Buyers continue to purchase, but only at lower prices and for immediate demand. Lower prices are expected to continue, leaving buyers unwilling to purchase for inventory. April dairy exports on a milk solids equivalent basis rose 15% from April 2025. This was the seventh consecutive year-over-year increase. Dairy exports for the first quarter have increased 12% compared to the same period last year. The total value of exports for the first four months of the year is 10% higher than in the same period last year. Even with the uncertainty and ongoing shipping disruptions, international demand remains strong due to attractive U.S. prices.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.39 |
| 6 Month: | $17.09 |
| 9 Month: | $17.25 |
| 12 Month: | $17.30 |
CHEESE:
Cheese prices are stuck and may move in a tight sideways range for a while. The amount of block cheese traded in the spot market today was substantial and unusual for the volume generally traded in a day. Increased cheese production is being absorbed by demand. April cheese exports were strong, setting a new monthly record at 64,168 metric tons, up 30% from April 2025. Cheese exports have set new records for three consecutive months. Whey exports were 39% higher than a year ago, totaling 52,097 metric tons.
BUTTER:
The butter price dropped back today on limited spot trading. This increases the concern that the market may fall further before finding support. Butterfat exports in April were 74% higher than a year ago, totaling 14,757 metric tons. Nonfat dry milk/skim milk powder exports were 9.0 percent above a year ago at 56,369 metric tons.
OUTSIDE MARKETS SUMMARY:
July corn closed up 2.75 cents per bushel at $4.1550, July soybeans closed up 5.75 cents at $11.1925, and July soybean meal closed up $.70 per ton at $302.00. July Chicago wheat closed up 5.25 cents at $5.8975. August live cattle closed up $2.08 at $243.25. July crude oil is down $3.44 per barrel at $81.44. The Dow Jones Industrial Average is up 469 points at 51,671, with the NASDAQ up 795 points at 26,684.


