Friday Closing Dairy Market Update - Loads and Loads of Butter

GENERAL OVERVIEW:

Butter traded 161 loads this week as prices slipped on average 2.6 cents. Buyers flocked to the table to fill inventory before summer demand hits as inventories usually tend to slip this time of year.

MILK:

Class III futures slowly moved lower this week with the June contract dipping below $16. Dry whey futures traded sideways with less than one cent move from the high settlement to the low. Class IV futures continued to slip lower this week after a disappointing week last week. The USDA released the WASDE report Thursday with expectations of milk production to continue to grow into next year. Luckily, the market seems to be able to consume what we produce despite the growing supply. Exports are strong especially in non-fluid products.

AVERAGE CLASS III PRICES:

3 Month:	$16.48
6 Month:	$17.20
9 Month:	$17.34
12 Month:	$17.38

CHEESE:

For the week, blocks gained 0.25 cent with 21 loads traded. The weekly average price is $1.4815. Barrels fell 6 cents from Monday to Friday with 4 loads traded. However, the weekly average increased from last week due to such a strong start to the week on Monday. The weekly average price is $1.4540. Dry whey increased 1 cent with 4 loads traded. The weekly average price is 67.70 cents.

BUTTER:

For the week, butter decreased 3.25 cents with 161 loads traded. Demand has been substantial in the last few weeks. The weekly average price is $1.6665. Grade A nonfat dry milk declined 11.25 cents with 51 loads traded. The weekly average price is $2.1160.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.00 cent per bushel at $4.1275, July soybeans closed down 1.5 cents at $11.1350, and July soybean meal closed down $0.04 per ton at $301.30. July Chicago wheat closed down 2.25 cents at $5.8450. August live cattle closed down $2.25 at $241.175. July crude oil is down $3.42 per barrel at $84.29. The Dow Jones Industrial Average is up 353 points at 51,202, with the NASDAQ up 79 points at 25,888.

Friday Midday Dairy Market Summary - Butter Buyers Came to the Table

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$0.02 Higher
LIVE CATTLE:	$1.75 Lower
DOW JONES:	343 Points Higher
NASDAQ:	57 Points Higher
CRUDE OIL:	$3.03 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased 0.25 cents to close at $1.4875 with 2 loads traded. The barrel cheese price remained unchanged at $1.42 with no loads traded. The dry whey price closed unchanged at 68.00 cents with no loads traded. Class III futures are mixed at 9 cents lower to 5 cents higher. The butter price increased 2.75 cents to close at $1.6675 with 60 loads traded. Grade A nonfat dry milk decreased 3 cents to close at $1.7850 with 5 loads traded. Class IV futures are steady to 25 cents higher. Butter futures are 0.075 cents lower to 2.15 cents higher. Dry whey futures are 0.375 cents lower to 0.50 cent higher. Cheese futures are 0.4 cent lower to 0.2 cents higher.

Friday Morning Dairy Market Update - Not Much Market Excitement Expected

OPENING CALLS:

Class III Milk Futures:	3 to 8 Higher
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	2 to 3 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	4 to 5 Lower

MILK:

The World Agricultural Supply and Demand report released on Thursday will have no impact on the market Friday. However, the report showed the USDA estimates milk production to increase significantly despite low milk prices. They increase their estimate for this year by 1.0 billion pounds and the same for 2027. If this comes to fruition, the milk production increase this year would be 4.7 billion pounds more than in 2025. Demand will need to increase significantly to keep pace with supply to shift milk prices higher. Trading activity is expected to be light ahead of spot trading Friday, with limited price movement expected.

CHEESE:

The divergence in price between blocks and barrels on Thursday was unusual. The decline in barrels had no direct impact on the Class III milk price. However, it may indicate the overall weakness in the market or the continued inability of prices to see much upside potential.

BUTTER:

Spot trading activity in butter and nonfat dry milk has been substantial this week. There have been 101 loads of butter and 46 loads of nonfat dry milk traded in the spot market. Buyers and sellers have been active; unfortunately, prices have been lower. Nonfat dry milk has seen substantial weakness since its peak, with the price falling faster than it increased