Tuesday Midday Dairy Market Summary - Butter and Nonfat Dry Milk Remained Under Pressure

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$2.20 Higher
LIVE CATTLE:	$0.96 Lower
DOW JONES:	136 Points Higher
NASDAQ:	345 Points Lower
CRUDE OIL:	$0.75 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 2.50 cents to close at $1.4150 with 5 loads traded. The barrel cheese price remained unchanged at $1.4600 with no loads traded. The dry whey price increased 0.50 cent to close at 68.50 cents, with one load traded. Class III futures are mixed, ranging from 8 cents lower to 6 cents higher. The butter price decreased 5.50 cents to close at $1.4750 with 15 loads traded. This is the lowest price since Jan. 21. There were more unfilled bids than uncovered offers remaining at the close. Grade A nonfat dry milk decreased 1.50 cents to close at $1.6000 with two loads traded. Class IV futures are mixed, ranging from 12 cents lower to 6 cents higher. Butter futures are steady to 3.25 cents lower. Dry whey futures are 0.45 cent lower to 0.25 cent higher. Cheese futures are 0.80 cent lower to 0.80 cent higher. Nonfat dry milk futures are 2.10 cents lower to 1.50 cents higher.

Tuesday Morning Dairy Market Update - Buyers Find No Reason For Concern

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The bearishness of the May Milk Production report had already been factored in. There was little reason to put further pressure on milk futures after the report was released. The report showed that milk production remains strong and milk prices are not going to increase anytime soon. The trend continues for increased milk production and higher cow numbers. This may be the pattern for the rest of the year. Low milk prices have not yet increased culling, as farmers do not find it necessary to cull for cash flow. Beef prices continue to remain high, and so will calf prices.

CHEESE:

Rather than finding support at the low prices, buyers continue to hold back and purchase at lower prices. Sellers continue to offer supplies on the spot market rather than build inventory in an abundant market. Higher milk production means increased cheese output. Demand has been keeping pace, but not strong enough to tighten the supply.

BUTTER:

The market has eliminated the gains seen in late May and is now at risk of falling back to the lows last seen in January. Churning is active, and supplies are sufficient. Manufacturers continue to sell butter on the spot market to manage inventory.

May Milk Production (24 states) up 2.4 Percent

May Milk Production up 2.4 Percent        

Milk production in the 24 major States during May totaled 19.8 billion pounds, up 2.4 percent from May 2025. April revised production, at 19.2 billion pounds, was up 2.8 percent from April 2025. The April revision represented a decrease of 1 million pounds or less than 0.1 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,143 pounds for May, 9 pounds above May 2025.   The number of milk cows on farms in the 24 major States was 9.23 million head, 182,000 head more than May 2025, and 7,000 head more than April 2026.   

May Milk Production in the United States up 2.3 Percent  

Milk production in the United States during May totaled 20.6 billion pounds, up 2.3 percent from May 2025.  Production per cow in the United States averaged 2,128 pounds for May, 8 pounds above May 2025.  The number of milk cows on farms in the United States was 9.67 million head, 184,000 head more than May 2025, and 10,000 head more than April 2026.