Monday Midday Dairy Market Summary - Block Cheese Jumps to Two-Month High

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	8 Higher
SOYBEAN MEAL:	$2.80 Lower
LIVE CATTLE:	$0.10 Lower
DOW JONES:	109 Points Lower
NASDAQ:	367 Points Lower
CRUDE OIL:	$5.25 Higher

MIDDAY MARKET UPDATE:

The block cheese price Increased 5.25 cents to close at $1.60 with 9 loads traded. The barrel cheese price remained steady at $1.56 with one load traded. The dry whey price decreased a penny to close at 68.00 cents with no loads traded. Class III futures are 2-47 cents higher. The butter price decreased a penny to close at $1.6400 with 17 loads traded. The price initially gained 0.75 cent before sellers became more aggressive. Grade A nonfat dry milk slipped 0.25 cent to close at $1.5525 with 5 loads traded. The price initially increased 0.50 cent, but could not hold the gain. Class IV futures have only traded in the August contract at 18 cents higher, and that was before spot trading. The current offer is lower than that price. Butter futures are steady to 2.30 cents lower. Dry whey futures are 0.50 -- 0.62 cent higher. Cheese futures are 0.20 -- 3.60 cents higher. Nonfat dry milk futures are 1.12 cents lower to 1.00 cents higher.

Monday Morning Dairy Market Update - Spot Prices Should Remain Supported

OPENING CALLS:

Class III Milk Futures:	3 to 5 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 5 Higher
Soybean Futures:	6 to 9 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	2 to 3 Lower

MILK:

Milk futures showed some nice strength last week, but it may not continue unless buyers remain aggressive in the spot market. There is little for traders to get excited over fundamentally. However, buyers may step up more aggressively to seasonally purchase, looking ahead to later demand. The hot weather this week in many parts of the country may also trigger some psychological buying as milk production will be impacted. Milk receipts at the plant level are expected to decrease, which may increase milk prices on the spot market as plants look for extra milk to keep plants running full.

CHEESE:

Cheese buyers may be more aggressive Monday to begin the week as buyers look ahead to later demand and want to increase their inventory. However, there may be a limitation as to how aggressive they will be due to sufficient cheese production and supplies. The upside price potential may be limited.

BUTTER:

The steady cash price last week may indicate supply and demand may be balanced. Sellers may offer butter on the spot market, but may not be aggressive sellers as they see improved retail demand. Reduced churning activity due to lower cream supplies may increase buying interest.

Friday Closing Dairy Market Update - USDA Increased Milk Production and Lower Milk Prices

GENERAL OVERVIEW:

Class III milk futures closed lower in most traded contracts. The weakness of blocks triggered selling as traders liquidated their recent long positions. USDA increased its estimates for milk production this year and 2027 and reduced the estimate for milk prices.

MILK:

Class III milk futures closed lower in most traded contracts. The weakness of blocks triggered selling as traders liquidated their recent long positions. Traders continue to trade short-term to scalp the market for a profit if possible, and the increase on Thursday was quickly sold when weakness surfaced. Cheese prices were significantly higher for the week, which should not have triggered the selling seen today. Class IV futures only showed trading in the September contract as traders found little reason to trade. The USDA released the World Agricultural Supply and Demand Estimates report today. It increased the estimate for milk production this year by 200 million pounds to 236.6 billion pounds. It raised the estimate for 2027 by 1.1 billion pounds to 238.1 billion pounds. This is another unusually large increase following the 1.0-billion-pound increase last month. As a result, milk prices were reduced. The average Class III price was reduced by $0.45 to $16.15. The average price for 2027 was reduced by $0.50 to $17.05. The Class IV price was reduced by $0.95 to average $18.40, with the price reduced by $1.20 next year. The All-milk price was lowered by $0.70 to $20.00, with the average price for 2027 reduced to $19.85, down $1.05.

AVERAGE CLASS III PRICES:

3 Month:	$16.48
6 Month:	$17.07
9 Month:	$17.16
12 Month:	$17.22

CHEESE:

For the week, blocks increased 11.50 cents with 21 loads traded. The weekly average price is $1.5150. Barrels increased 8.50 cents with 5 loads traded. The weekly average price is $1.5270. Dry whey increased 0.50 cent with one load traded. The weekly average price is 67.90 cents. USDA decreased the average cheese price this year to $1.57, down 4.00 cents from the June report. The 2027 price was reduced by 4.50 cents to $1.6650. The dry whey price remained unchanged this year at 66.00 cents, with next year unchanged at 65.00 cents.

BUTTER:

For the week, butter increased 1.25 cents with 36 loads traded. The weekly average price was $1.6500. Grade A nonfat dry milk increased 5.00 cents with 70 loads traded. The weekly average price is $1.5160. The average butter price this year was lowered 5.00 cents to $1.6900. The price was lowered by 7.00 cents next year to $1.7500. The nonfat dry milk price was reduced 8.50 cents to $1.6150 for this year and reduced 9.50 cents next year to $1.4700.

OUTSIDE MARKETS SUMMARY:

December corn closed up 9.00 cents per bushel at $4.6100, November soybeans closed up 9.25 cents at $11.9075 and December soybean meal closed up $3.30 per ton at $318.70. September Chicago wheat closed up 20.50 cents at $6.4025. August live cattle closed down $0.05 at $235.20. August crude oil is down $0.67 per barrel at $71.41. The Dow Jones Industrial Average is up 150 points at 52,637, with the NASDAQ up 75 points at 26,282.