Fluid Milk and Cream - Western U.S. Report 16

California milk production is steady. Handlers report March 2026 milk production is up slightly from the prior month. Year over year milk production for March 2026 is up also. Processors are busily working through milk volumes. Central Valley manufacturers report milk volumes are more manageable and production is running well. 

Arizona farm level milk output is steady. Some manufacturers are bringing in spot milk to fill open processing capacity and run busier production schedules. 

Handlers in New Mexico report peak spring milk production is at hand. 

Pacific Northwest milk production varies from steady to stronger. Some manufacturers are bringing spot milk loads into their production facilities from sellers inside and outside of the Pacific Northwest. 

Farm level milk output in the Mountain States of Idaho, Utah, and Colorado is steady. Spot milk loads are readily available with some manufacturer downtime in the Mountain States. Stakeholders report that peak spring milk output volumes are good. Class I demand is stronger with many educational institution's spring breaks completed. Class II demand varies from lighter to steady. Class III and IV demands are steady. 

Cream loads are available to accommodate demands. Cream demand is steady. Cream multiples are unchanged this week. Condensed skim milk demand and availability is steady, however, some sellers report buyer interest is lower than the previous year due to available quantities of milk solids.

Thursday Midday Dairy Market Summary - Grade A Nonfat Dry Milk Shows No Price Resistance

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$4.00 Higher
LIVE CATTLE:	$0.02 Lower
DOW JONES:	395 Points Higher
NASDAQ:	192 Points Higher
CRUDE OIL:	$1.14 Higher

MIDDAY MARKET UPDATE:

The block price showed further weakness, indicating the weakness on Wednesday was not an aberration. The market sentiment seems to have changed. Blocks showed further weakness today, with the price declining 1.25 cents to close at $1.5525 with one load traded. The barrel cheese price declined 1.75 cents to close at $1.5725 with no loads traded. The dry whey price remained unchanged at 70.00 cents with no loads traded. Class III futures are 15 cents lower to 2 cents higher. The butter price gained 1.00 cents to close at $1.7375 with 27 loads traded. Grade A nonfat dry milk gained 3.50 cents to close at $2.06 with two loads traded. The strength of nonfat dry milk is incredible, with new all-time highs daily. Nonfat dry milk/skim milk powder export in February was 8.0 percent above a year ago. Strong domestic and international demand continues to support the market. Class IV futures are 22-55 cents higher. Butter futures are 0.65 cent lower to 0.72 cent higher. Dry whey futures are 0.55 cent lower to 0.70 cent higher. Cheese futures are 1.60 cents lower to 0.20 cent higher.

Thursday Morning Dairy Market Update - Block Cheese Weakness: Aberation or Reality

OPENING CALLS:

Class III Milk Futures:	4 to 9 Lower
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

This week has been brutal for Class III milk futures. Selling pressure earlier in the week was the forerunner of weakness in the block cheese price on Wednesday. Futures did not react violently to the downside due to weakness in cheese already factored in. However, the magnitude of the weakness was unexpected, resulting in further pressure. Increasing milk production will keep cheese output strong and may exceed demand in the near term. Farms are expected to push milk production, and cow numbers are expected to increase as the year progresses.

CHEESE:

Cheese buyers are likely to hold back during spot trading to see whether sellers will remain aggressive and move more supplies. There were no uncovered offers at the close on spot trading on Wednesday, which could suggest the decline may have been an aberration, with buyers willing to step back in to take advantage of the decline. This will keep traders cautious.

BUTTER:

The butter price has yet to find support. Offers remained at the close of spot trading on Wednesday, indicating sellers want to move more product. Manufacturers want to move supplies rather than build plant inventories.