Friday Midday Dairy Market Summary - Spot Nonfat Dry Milk Price Jumps

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$1.30 Higher
LIVE CATTLE:	$0.20 Lower
DOW JONES:	16 Points Lower
NASDAQ:	164 Points Lower
CRUDE OIL:	$1.49 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.75 cents, closing at $1.5300 with three loads traded. The barrel price increased 1.75 cents, closing at $1.5300 with no loads traded. The dry whey price increased 1.00 cents, closing at 66.00 cents with no loads traded. Class III futures jumped with contracts unchanged to 37 cents higher. The butter price slipped 0.50 cent, closing at $1.8475 with seven loads traded. Grade A nonfat dry milk remained unchanged at $1.7650 with no loads traded. Class IV futures are steady to 43 cents higher, with the May contract moving to $20.15 and a new contract high. Butter futures are mixed, ranging from 5.00 cents lower to 0.65 cent higher. Dry whey futures are 0.25-0.50 cent higher. Cheese futures are 0.30 cent lower to 4.20 cents higher.

Friday Morning Dairy Market Update - Unusual Activity in Overnight Milk Futures

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 3 Lower
Soybean Futures:	8 to 10 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	Mixed

MILK:

The only trading activity taking place overnight in milk futures was in the April Class IV contract. There were 15 contracts traded, adding to the unusualness of this event. I have never seen overnight trading activity in Class IV, but not in Class III futures. Class IV futures have been outperforming Class III futures, but not because of a strong butter price, but because of the strength of nonfat dry milk. The nonfat dry milk price has moved to the highest level since June 28, 2022. Butter and cheese prices may have difficulty trending higher as milk production increases seasonally.

CHEESE:

The block cheese price maintains an overall uptrend, but may develop a sideways pattern as more milk moves to manufacturing due to increased milk production. Demand for cheese has improved, but inventory is expected to increase over the next few months.

BUTTER:

The butter price may be low enough to generate buying interest, but the buyers may not be aggressive. Sellers have been interested in moving supplies. This may keep buyers less aggressive and only willing to buy as it is offered to them. There is no concern over tightening supplies despite an increase in retail demand. 

Thursday Closing Dairy Market Update - Dairy Exports in 2025 Were 4% Above 2024

GENERAL OVERVIEW:

There was not much direction from the spot market for cheese and butter. The strength in Class IV futures stemmed from the strength in the Grade A nonfat dry milk price. Cheese production is strong as more milk is available for manufacturing.

MILK:

Reports from the Central region indicate increased milk production. Many cheese plants are running on full schedules are not taking on any extra milk. This leaves more milk on the spot market with spot prices this week at $5.00 under to flat class. Extra milk is available due to the slowing of bottling as spring break is taking place and will continue over the next few weeks as various schools close. Dairy exports for 2025 increased 4% from 2024. The total value of exports was 15% higher than in 2024. Dairy exports on a milk solids equivalent surged 13% in December alone, the second highest in history. The lower prices spurred increased international demand. This strength is expected to continue as world prices remain substantially higher than the U.S. prices.

AVERAGE CLASS III PRICES:

3 Month:	$16.51
6 Month:	$17.18
9 Month:	$16.37
12 Month:	$16.67

CHEESE:

Cheese exports in December increased 63%, making exports for the year 20% higher than in 2024. This has had little impact on domestic prices. However, without this growth in international demand, milk prices could have been much lower. Dry whey exports for the year were unchanged from the previous year.

BUTTER:

Butterfat exports had the biggest month of the year in December, increasing 260% above December 2024. Butterfat exports for the year increased by 167% compared to 2024. Whole milk powder exports in 2025 were 56% above the previous year. Nonfat dry milk/skim milk powder exports in 2025 were 9% higher than in 2024.

OUTSIDE MARKETS SUMMARY:

May corn closed up 2.25 cents per bushel at $4.6250, May soybeans closed up 13.25 cents at $12.2725, and May soybean meal closed up $4.80 per ton at $320.20. May Chicago wheat closed up 3.75 cents at $5.9850. April live cattle closed up $1.10 at $231.25. April crude oil is up $8.48 per barrel at $95.73. The Dow Jones Industrial Average is down 739 points at 46,678, with the NASDAQ down 404 points at 22,312.