Monday Closing Dairy Market Update - March Fluid Milk Sales Increased 2.3%

GENERAL OVERVIEW:

Both Class III and Class IV futures were generally lower. No price movement or limited price movement in the underlying cash was viewed as negative by traders.

MILK:

When the market is bullish, steady cash prices are viewed as friendly. When the market is bearish, steady prices are viewed as negative. That is the attitude of today. This does not necessarily mean the market will trend lower from here, but it limits the upside potential. Milk output is higher than a year ago, with sufficient supply available for bottling and manufacturing needs. March fluid milk sales were 2.3 percent higher than in March 2025. Whole milk sales increased 4.8 percent; flavored whole milk increased 13.4 percent; reduced-fat milk decreased 0.7 percent; low-fat milk declined 4.6 percent; fat-free skim milk declined 3.4 percent; flavored fat-reduced milk declined 0.5 percent; buttermilk increased 2.9 percent; with other fluid milk product sales up 13.7 percent. Organic whole milk sales increased 10.3 percent; organic flavored whole milk jumped 31.5 percent; organic reduced-fat milk increased 1.1 percent; organic low-fat milk decreased 8.4 percent; organic fat-free milk sales decreased 2.3 percent; organic flavored fat-reduced milk increased 14.6 percent, with organic sales of other fluid milk products declining 100.0 percent.

AVERAGE CLASS III PRICES:

3 Month:	$17.11
6 Month:	$17.79
9 Month:	$17.96
12 Month:	$17.91

CHEESE:

The negative aspect of the cheese market was that blocks closed spot trading with 10 uncovered offers remaining at the close. This could suggest the price will have limited upside potential. Manufacturers are interested in moving supplies to the market quickly to minimize building inventory.

BUTTER:

The spot butter price closed steady after initially declining during spot trading. Trading was brisk, with 26 loads changing hands. However, there were 15 unfilled bids remaining at the close of spot trading. This suggests the market may have a floor where buyers are interested in buying, but not necessarily that the price will trend higher. It will depend on how aggressive those buyers will want to be.

OUTSIDE MARKETS SUMMARY:

July corn closed up 21.25 cents per bushel at $4.7700, July soybeans closed up 36.00 cents at $12.1300, and July soybean meal closed up $.20 per ton at $334.50. July Chicago wheat closed up 28.75 cents at $6.6450. June live cattle closed down $0.53 at $253.38. June crude oil is up $3.24 per barrel at $108.66. The Dow Jones Industrial Average is up 160 points at 49,686, with the NASDAQ down 134 points at 26,091.

Monday Midday Dairy Market Summary - Spot Prices Hold Steady

OUTSIDE MARKETS SUMMARY:

CORN:	20 Higher
SOYBEANS:	39 Higher
SOYBEAN MEAL:	$2.40 Higher
LIVE CATTLE:	$0.02 Lower
DOW JONES:	77 Points Higher
NASDAQ:	187 Points Lower
CRUDE OIL:	$1.37 Higher

MIDDAY MARKET UPDATE:

Both block and barrel cheese remained unchanged at $1.5550 for both categories. There were no loads traded. The dry whey price increased 0.50 cent to close at 69.00 cents with no loads traded. Even though no price change was seen for cheese, and dry whey increased slightly, Class III futures are mostly lower. Contracts range from 17 cents lower to 5 cents higher. The butter price remained steady at $1.64 with 26 loads traded. Grade A nonfat dry milk slipped 0.25 cent to close at $2.27 with no loads traded. Class IV futures are 6-7 cents lower, with trading activity only taking place in the October and November contracts. Butter futures are 3.22 cents lower to 0.22 cent higher. Dry whey futures are 0.07 cent lower to 0.37 cent higher. Cheese futures are 1.80 cents lower to 0.30 cent higher.

Monday Morning Dairy Market Update - Limited Price Movement Ahead of Spot Trading

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	13 to 15 Higher
Soybean Futures:	25 to 26 Higher
Soybean Meal Futures:	$4 to $5 Higher
Wheat Futures:	19 to 21 Higher

MILK:

There has been little fundamental change in the market, leaving milk futures choppy. This is not expected to change anytime soon. Milk production continues to exceed that of a year ago. Any increase in demand is being readily met without tightening supply. Class IV futures have been holding due to the strength of nonfat dry milk. However, the slight weakness last week could indicate the price may have met resistance and demand may be slowing. The price is not expected to fall apart but may hold at a lower level. There is much uncertainty in the market and it will keep traders preferring short-term trading rather than establishing long-term positions.

CHEESE:

The question is whether the block cheese price will hold support at the bottom of the trading range or if further weakness develops. Cheese demand is good, but production is higher due to increased milk receipts at plants. More milk will be diverted to manufacturing as schools close for the summer.

BUTTER:

The butter price is trying to increase as demand is strong. However, churning is active with plants operating seven days a week. Churning is expected to decrease seasonally as summer weather impacts milk production and butterfat content.