Thursday Midday Dairy Market Summary - Spot Prices Jump

OUTSIDE MARKETS SUMMARY:

CORN:	5 Higher
SOYBEANS:	20 Higher
SOYBEAN MEAL:	$7.10 Higher
LIVE CATTLE:	$5.15 Lower
DOW JONES:	552 Points Lower
NASDAQ:	311 Points Lower
CRUDE OIL:	$1.77 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 4.00 cents, closing at $1.4675 with 10 loads traded. There were seven unfiled bids and three uncovered offers remaining. The barrel cheese price remained unchanged at $1.44 wth no loads traded. The dry whey price increased 0.50 cent to close at 73.00 cents with two loads traded. Class III futures are 10 cents lower to 49 cents higher, with March showing the greatest strength. The butter price jumped 10.25 cents, closing at $1.71 with nine loads traded. There were 36 unfilled bids and three uncovered offers remaining at the close of spot trading, suggesting further upside potential. The Grade A nonfat dry milk price jumped 6.25 cents to close at $1.66 with no loads traded. The buyers remain aggressive with no sellers to be found. This is the highest nonfat dry milk price since Aug. 2, 2022. Class IV futures are $0.37 to $1.06 higher with expanded limits today. Butter futures are 1.50 to 11.90 cents higher. Dry whey futures are 0.25 cent lower to 1.02 cents higher. Cheese futures are 0.10 cent lower to 3.70 cents higher. The USDA will release the December Dairy Products report this afternoon.

Thursday Morning Dairy Market Update - Traders May Be Cautious Ahead of Spot Trading

OPENING CALLS:

Class III Milk Futures:	4 to 8 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Stready to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	5 to 10 Higher
Soybean Meal Futures:	$3 to $5 Higher
Wheat Futures:	1 to 2 Higher

MILK:

Milk futures have had a strong run-up since the middle of January. This has improved the outlook for milk prices, but still leaves much to be desired. Cheese prices have supported the increase, but caution needs to be exercised as demand will need to remain strong and increase to absorb the continued increase in milk production. Beef prices remain strong, which will keep calf prices high. This will continue to have a substantial impact on cow numbers. The strong increase in the latest Global Dairy Trade action may be providing some support.

CHEESE:

The block cheese price has increased over the past three consecutive days, but has yet to exceed the high of Jan. 26. This may take place this week. However, it may be a level of price resistance for cash buyers. It is unlikely cheese prices will continue to trend higher.

BUTTER:

Buyers have been rather aggressive in the butter market as they seek to gain ownership before prices move higher. This motivates them to be more aggressive as they try to outbid each other. The December Dairy Products report will be released Thursday and is expected to show increased butter output compared to the previous year. 

Wednesday Closing Dairy Market Update - January Class III Price is $14.59

GENERAL OVERVIEW:

It was a very strong day for milk futures, with Class IV contracts outpacing Class III. The Global Dairy Trade auction trade-weighted average jumped 6.7%. The December Federal Order class prices declined from the previous month.

MILK:

Milk futures moved substantially higher, with Class IV contracts outpacing Class III. The increase in butter supported the market, but the strength of nonfat dry milk pushed the April Class IV contract as much as 95 cents higher. The April through December contracts moved over $18.00, where they have not been since early September 2025. The January Federal Order class price was released. The Class II price is $13.92, down $0.42 from December and down $7.66 from January 2025. The Class III price is $14.59, down $1.27 from December and down $5.75 from a year ago. The Class IV price is $13.55, down $0.09 from December and $7.18 lower than January 2025. The Global Dairy Trade auction took place on Tuesday. The trade-weighted average jumped 6.7%. Anhydrous milk fat increased 5.0% to $6,524 per metric ton or $2.96 per pound; butter jumped 8.8% to $5,773 per metric ton or $2.62 per pound; buttermilk powder increased 6.4% to $3,147 per metric ton or $1.43 per pound; cheddar cheese increased 3.8% to $4,772 per metric ton or $2.17 per pound; lactose increased 1.5% to $1,410 per metric ton or $0.64 per pound; mozzarella cheese jumped 10.6% to $2,874 to $1.30 per pound; skim milk powder increased 5.3% to $1.64 per pound or $1.31 per pound; and whole milk powder increased 5.3% to $3,614 per metric ton or $1.64 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$16.59
6 Month:	$17.21
9 Month:	$17.49
12 Month:	$17.51

CHEESE:

Cheese continues to find some support. The extent of further gains is uncertain. However, it seems that the attitude of traders has turned more supportive of higher prices. The December Dairy Products report will be released on Thursday.

BUTTER:

The butter price moved to the highest level since Oct. 31, 2025. This market seems to have found solid support. Higher prices are expected in the near term.

OUTSIDE MARKETS SUMMARY:

March corn closed up 1.00 cent per bushel at $4.2950, March soybeans closed up 26.50 cents at $10.9225 and March soybean meal closed up $4.30 per ton at $296.20. March Chicago wheat closed down 2.00 cents at $5.2675. April live cattle closed up $0.18 at $241.80. March crude oil is up $1.93 per barrel at $65.14. The Dow Jones Industrial Average is up 260 points at 49,501, with the NASDAQ down 351 points at 22,905.