Friday Closing Dairy Market Update -

GENERAL OVERVIEW:

Class IV futures had a very strong day with both the May and June contracts closing at new contract highs above $22.00. All contracts through November close at new contract highs. The March Cold Storage report showed all categories posting an increase in inventory.

MILK:

Class IV contracts from May through November closed at new contract highs, supported by the rebound in the butter price. The April contracts showed no change in either class of milk, as the last trading day for the contract will be on Tuesday. The milk production report earlier this week showed strong milk output, with only four of the top 24 states showing production declines from a year earlier. Washington showed the largest decline, with production down 5.8%. New Mexico declined 3.2%, Pennsylvania was down 2.3%, and Illinois was down 0.7%. The largest gain took place in Kansas, with a production increase of 25.4%. It also had the largest cow numbers with an increase of 47,000 head from a year ago. South Dakota has shown double-digit gains for numerous months but slowed to a year-over-year gain of 6.9%. All of the other states showed production increases of less than 6.0%.

AVERAGE CLASS III PRICES:

3 Month:	$17.52
6 Month:	$18.26
9 Month:	$18.43
12 Month:	$18.24

CHEESE:

For the week, block increased 6.75 cents with 43 loads traded. The weekly average price is $1.6190. Barrels increased by 4.00 cents with no loads traded. The weekly average price is $1.5910. Dry whey increased 0.75 cent with two loads traded. The weekly average price is 69.95 cents. The March Cold Storage report showed American cheese inventory increasing 10.7 million pounds from February, totaling 801.6 million pounds. This is 3% below March 2025. Swiss cheese inventory increased 127,000 pounds, totaling 24.8 million pounds. This is 4% above a year ago. Other cheese inventory totaled 575.0 million pounds, up 2.7 million pounds from February, but down 1% from a year ago. Total cheese inventory reached 1.401 billion pounds. This was an increase of 13.5 million pounds, but it is 2% below a year ago.

BUTTER:

For the week, butter increased 1.50 cents with 94 loads traded. The weekly average price is $1.7010. Grade A nonfat dry milk increased 6.00 cents with nine loads traded. The weekly average price is $2.2370. Butter inventory in March increased by 32.8 million pounds, totaling 288.8 million pounds. This was 11% below March 2025.

OUTSIDE MARKETS SUMMARY:

July corn closed down 0.25 cent per bushel at $4.6350, July soybeans closed up 3.75 cents at $11.7850, and July soybean meal closed up $2.60 per ton at $319.10. July Chicago wheat closed down 3.50 cents at $6.1675. June live cattle closed up $1.73 at $245.23. June crude oil is down $1.45 per barrel at $94.40. The Dow Jones Industrial Average is down 80 points at 49,231, with the NASDAQ is up 398 points at 24,837.

Friday Midday Dairy Market Summary - Bounce in Butter Prices

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$3.10 Higher
LIVE CATTLE:	$1.55 Higher
DOW JONES:	189 Points Lower
NASDAQ:	25 Points Lower
CRUDE OIL:	$2.36 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased a penny, closing at $1.6450 with three loads traded. The barrel cheese price remained unchanged at $1.6150 with no loads traded. The dry whey price increased 0.25 cent to close at 69.75 cents with no loads traded. Class III futures are 4 cents lower to 22 cents higher. The butter price increased 6.00 cents, closing at $1.7050 with five loads traded. Grade A nonfat dry milk remained unchanged at $2.26 with three loads traded. Class IV futures are 9-50 cents higher with both the May and June contracts above $22.00. Butter futures are 0.72 cents lower to 4.52 cents higher. Dry whey futures are 0.40-0.75 cents lower. Cheese futures are 0.10-2.80 cents higher. USDA will release the March Milk Production report this afternoon. Inventory is expected to increase but remain below a year ago.

Friday Morning Dairy Market Update - Increasing Cow Numbers and Higher Milk Production

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk output continues to remain significantly higher than a year ago. Cow numbers continue to increase despite the average slaughter of dairy cattle. Cow numbers in March were 187,000 head more than in March 2025. Kansas had the highest increase, with cow numbers up 51,000 head from a year ago. Texas showed an increase of 34,000 head, with Wisconsin up 28,000 head. Other states in the top 24 showed lower increases or declines. The trend for increased milk production and cow numbers is expected to continue throughout this year. USDA will release the March Cold Storage report Friday afternoon.

CHEESE:

The increase in the barrel cheese price was bound to happen as the price had remained unchanged for a time. The minor increase in blocks may indicate the price may have difficulty increasing much further, as increased cheese production keeps sufficient supplies available to the market.

BUTTER:

The weakness of butter has been surprising. Sellers keep offering it to the market to keep inventory from building at the plant level. Butter inventory being significantly below a year ago has had no impact on buyers as they continue to purchase supplies at lower prices. The U.S. price is about $0.95 per pound below the world price, which will keep international interest strong.