Thursday Closing Dairy Market Update - Products Report Delayed

GENERAL OVERVIEW:

USDA was to release the Dairy Products report Thursday afternoon, however at the time of the closing comments, USDA's website still does not have the report posted.

MILK:

Class III futures dropped anywhere from 15 to 33 cents lower on Thursday. Class IV futures were 1 to 3 cents higher on the months that traded. Dry whey was mixed from 0.15 lower to 0.175 higher. Nonfat dry milk spent the day trading sideways with mixed trade near the close of the day, trading anywhere from 1 cent lower to 1.225 cents higher. Milk production has been higher in recent weeks with the cooler weather. Cows are liking the temperature, and cow comfort is optimum.

AVERAGE CLASS III PRICES:

3 Month:	$16.98
6 Month:	$16.93
9 Month:	$17.08
12 Month:	$17.24

CHEESE:

Cheese futures traded anywhere from 1.5 to 2.9 cents lower this afternoon, further continuing the weakness seen from earlier this week. Cash prices have traded lower to flat this week, with today's trade off 1 cent for cheddar blocks. Barrels have not traded yet this week.

BUTTER:

Butter futures were unchanged to 4.75 cents lower on Thursday, while the cash price was a little less dramatic, only falling 0.75 cents. There were a lot of buyers and sellers in Thursday's spot trade with 22 loads actually trading and substantially more players wanting to make a trade but prices were too far apart. Holiday baking season is around the corner so grocery stores have been pushing cheese and butter advertisements.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.25 cents per bushel at $4.4000, January soybeans closed down 14.00 cents at $11.8825 and December soybean meal closed down $1.40 per ton at $317.20. December Chicago wheat closed up .75 cent at $5.9925.

December live cattle closed down $3.60 at $214.40. December crude oil is up 2.40 per barrel at $90.52. The Dow Jones Industrial Average is down 1833 points at 51,523 and the NASDAQ is down 1422 points at 24,315.

Fluid Milk and Cream - Western U.S. Report 45

Contacts report strong milk production in California, with milk output increasing week over week. Farm-level milk production remains steady in New Mexico, Arizona, and Colorado. In the Pacific Northwest, milk production has declined somewhat as positive cases of Highly Pathogenic Avian Influenza have expanded across the region. Idaho reports balanced farm-level milk output as cooler temperatures continue to spread throughout the region. 

Classes demand remains steady week over week. Federal Milk Market data for Areas 51, 124, and 131 show Class I, II, and IV posting the largest year-over-year declines from 2025 to 2026, while Class III shows the strongest growth in fluid demand. Cream availability across the West remains balanced. Some spot loads are available, but contacts expect cream supplies to become more abundant as favorable fall weather conditions continue. Cream multiples moved slightly higher at the top of both regional ranges. 

Condensed skim milk remains tight, with contacts reporting limited availability. Buyers are negotiating contracts to secure condensed skim milk and, in some cases, must also contract for other, more readily available fluid products in order to secure the contract. Some manufacturers are turning to nonfat dry milk (NDM) to fill ingredient supply gaps. According to contacts, suppliers have left some 2027 condensed skim contracts unfilled because of current availability projections.

Thursday Midday Dairy Market Summary - Heavy Butter Volume as Price Falls

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$0.50 Lower
LIVE CATTLE:	$4.775 Lower
DOW JONES:	1,482 Points Lower
NASDAQ:	1,252 Points Lower
CRUDE OIL:	$2.41 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased by 1 cent to close at $1.5775 with no loads traded. The barrel cheese price was unchanged at $1.7250 with no loads traded. Dry whey increased 1 cent to close at 86.0 cents with no loads traded. Class III futures are trading 12 to 32 cents lower. The butter price decreased by 0.75 cents, closing at $1.2725 with 22 loads traded. There were 122 bids and 50 offers remaining at the close. Grade A nonfat dry milk increased 2.5 cents to close at $2.2125 with three loads traded. Class IV futures are trading 1 cent higher on the December contract. Butter futures are unchanged to 0.55 cents lower. Dry whey futures are 0.8 cent lower to 0.1 cent higher. Cheese futures are 1.4 to 2.6 cents lower. Nonfat dry milk futures are 0.25 to 1.475 cents higher.