Monday Closing Dairy Market Update - April Income Over Feed is $10.54

GENERAL OVERVIEW:

Class III futures were able to show strength in nearby contracts at the close of trading, but nothing provided a catalyst for strong buying or selling. Class IV futures ended another strong day with significant gains. The income over feed price for April was $10.54.

MILK:

Class IV traders found more direction for a short-term trade from the increase in butter and nonfat dry milk prices. It may not be a change in direction, but it provides sufficient volatility for traders to hopefully make a profit from scalping the market. There is limited expectation for the market to trend higher anytime soon. The average soybean meal price for April was released this morning at $330.28 per ton. This was an increase of $4.13 per ton from March and was $35.25 per ton higher than April 2025. The income over feed price for April was $10.54. This was $0.97 higher than March. There will be no Dairy Margin Coverage payment.

AVERAGE CLASS III PRICES:

3 Month:	$16.73
6 Month:	$17.31
9 Month:	$17.52
12 Month:	$17.52

CHEESE:

It was surprising that the block cheese price remained steady in light of the volume of loads traded on the spot market. The price is at a level where both buyers and sellers are comfortable. Cheese needs to come to the spot market to keep inventory from building at the plant level. The buyers were ready to purchase rather than step back to see if the sellers would lower their offers.

BUTTER:

Butter was able to eke out another minor gain, keeping support under the market. Traders responded with strong buying in butter futures. It may be possible that the trend has changed. However, there is no shortage of supply in the market.

OUTSIDE MARKETS SUMMARY:

July corn closed down 2.75 cents per bushel at $4.4400, July soybeans closed down 6.00 cents at $11.8075, and July soybean meal closed down $3.30 per ton at $326.50. July Chicago wheat closed down 1.75 cents at $6.0875. August live cattle closed up $1.55 at $240.60. July crude oil is up $5.14 per barrel at $92.50. The Dow Jones Industrial Average is up 46 points at 51,079, with the NASDAQ up 114 points at 27,087.

Monday Midday Dairy Market Summary - Butter Holds Gain and Increased Slightly

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$3.80 Lower
LIVE CATTLE:	$0.62 Lower
DOW JONES:	363 Points higher
NASDAQ:	107 Points Higher
CRUDE OIL:	$5.37 Higher

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.4750 and $1.4400 respectively. Trading activity was strong in blocks, with 12 loads changing hands. The price only fluctuated by 0.25 cent during the course of trading. The dry whey price slipped 0.50 cent to close at 69.50 cents. Class III futures are 13 cents lower to 11 cents higher. The butter price increased 0.25 cent to close at $1.6700 with one load traded. Grade A nonfat dry milk increased 4.00 cents to close at $2.13 with 3 loads traded. Class IV futures are 10-48 cents higher.

Butter futures are 0.82 cent lower to 7.55 cents higher. Dry whey futures are 0.25 -- 0.50 cent lower. Cheese futures are 0.50 cent lower to 1.20 cents higher.

Monday Morning Dairy Market Update - Light Trading Activity Expected

OPENING CALLS:

Class III Milk Futures:	3 to 6 Lower
Class IV Milk Futures:	4 t o 8 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	3 to 4 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	3 to 4 Higher

MILK:

Class III milk futures did not have a good week and the beginning of the week does not look positive. Futures were lower overnight as there is little bullish news to support prices. Class IV futures did not trade overnight, but there is potential for strength from the underlying cash. Traders continue to scalp the market in an attempt to make a profit rather than establish long-term positions. Supportive fundamental news is limited with most schools closed, reducing milk moving to school accounts and more moving to manufacturing. Milk is readily available for demand with milk production increasing and remaining above a year ago.

CHEESE:

There is little reason for spot cheese prices to trend higher. Manufacturers want to move supplies to the spot market as quickly as possible rather than build inventory. Buyers see sufficient cheese supplies, leaving them less aggressive in the market.

BUTTER:

The recent strength in butter would suggest further upside potential as the price has increased despite heavy offers. Increased demand may be sufficient to require buyers to purchase for immediate needs as well as for contracted needs as the year progresses.