GENERAL OVERVIEW:
Milk futures did not increase as much as anticipated with the increase in block cheese and nonfat dry milk. March milk production was 2.3% above March 2025, with cow numbers up 8,000 head from February, totaling 9.621 million head.
MILK:
As the day progressed, Class IV futures weakened as traders seemed to take profits after early price strength. Near the end of the day, the May and June contracts posted double-digit losses. That may not be where they are settled for the day due to the CME settling the contracts two hours before trading closes. That is why the end-of-the-day trading does not always coincide with settlement prices. The March Milk Production report showed production in the top 24 states up 2.4% over March 2025. Production per cow averaged 2,133 pounds, up 7 pounds from a year ago. Cow numbers were 8,000 head more than in February. Milk production in the U.S. increased 2.3% from March 2025. Production per down averaged 2,119 pounds. Cow numbers increased by 8,000 head from February, totaling 9.621 million head. First-quarter milk production was 2.9% higher than the same period in 2025.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.42 |
| 6 Month: | $18.12 |
| 9 Month: | $18.31 |
| 12 Month: | $18.14 |
CHEESE:
The block cheese price increased but moved within the recent sideways price range. The price is expected to remain supported, but range-bound in the near term. Trading interest has increased with 38 loads traded so far this week. Buyers are purchasing to increase ownership, while sellers want to limit the buildup of inventory at the plant level.
BUTTER:
Butter continues to have a difficult time finding support. It looked like the price was going to settle at another new low this month, but buying interest increased during spot trading, bringing the price up from the lows. There were 75 loads traded so far this week.
OUTSIDE MARKETS SUMMARY:
May corn closed up .50 cent per bushel at $4.5425, May soybeans closed down 10.00 cents at $11.6450 and July soybean meal closed down $4.90 per ton at $316.30. July Chicago wheat closed down 5.75 cents at $6.0700. June live cattle closed down $0.48 at $243.08. June crude oil is up $3.21 per barrel at $92.88. The Dow Jones Industrial Average is up 341 points at 49,490, with the NASDAQ up 398 points at 24,658.



