Tuesday Morning Dairy Market Update - The Week Begins With Milk Futures Under Pressure

OPENING CALLS:

Class III Milk Futures:	5 to 8 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	Mixed
Soybean Meal Futures:	$2 to $4 Lower
Wheat Futures:	11 to 13 Higher

MILK:

Class III futures continue to erode as further premium is taken out of the market. The block cheese price has been unable to find support. Buyers see no need to be aggressive as milk production remains strong, providing sufficient milk for bottling and manufacturing. The seasonal strength in cash prices is nowhere to be found. Buyes have no concern over supplies and are purchasing supplies as needed and have been able to increase ownership without needing to be aggressive. Class IV futures are faring better as the nonfat dry milk price continues to provide support. It does not appear there will be much change in the near-term.

CHEESE:

There is little expectation for cheese prices to move much. Solid support remains elusive as sellers continue to offer supply on the spot market. More milk is moving to bottling due to schools being open, but milk remains available to the vat. Steady cheese production is providing sufficient supplies to the market.

BUTTER:

The spot butter price bounced last week, but the overall price remains in a downtrend. The inability of the market to see a seasonal increase in price at this time of year does not bode well. Sellers continue to have sufficient supply, keeping buyers satisfied without having to chase the price higher.

Friday Closing Dairy Market Update - Class III Futures Close Lower for the Week

GENERAL OVERVIEW:

Milk futures closed with mostly double-digit gains. Class III futures closed mostly higher despite weakness in the block cheese market. However, futures closed lower for the week. Class IV futures closed significantly higher for the week.

MILK:

Class III futures slowly drifted lower throughout the week despite hot temperatures across the country. Class prices were announced this week with Class III $1.12 higher than July although 60 cents below August 2025. Class IV saw a decline of 98 cents from the previous month and $1.14 lower than a year ago. Class II also saw a decline from July of $3.18 but only 47 cents lower than 2025. Class IV futures also drifted lower this week with pressure from its components which also drifted lower.

AVERAGE CLASS III PRICES:

3 Month:	$16.40
6 Month:	$16.69
9 Month:	$16.94
12 Month:	$17.13

CHEESE:

For the week, blocks decreased 3 cents with 51 loads traded. The weekly average price is $1.4750. Barrels were 4.25 cents lower from the close of the previous week with no loads traded. The weekly average price is $1.5390. Dry whey increased 3.25 cents with 7 loads traded. The weekly average price is 74.40 cents.

BUTTER:

For the week, butter fell 2 cents with 82 loads traded. The weekly average price is $1.4260. Grade A nonfat dry milk increased 3 cents with 29 loads traded. The weekly average price is $1.8820. The nonfat dry milk price has increased 49.50 cents since the low on July 27.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.00 cents per bushel at $5.3675, November soybeans closed down 6.50 cents at $13.0975, and December soybean meal closed down $.40 per ton at $355.10. December Chicago wheat closed down 20.25 cents at $7.3400.

October live cattle closed down $1.35 at $212.95. October crude oil is down $0.05 per barrel at $91.25. The Dow Jones Industrial Average is down 271 points at 53,414 and the NASDAQ is down 77 points at 26,506.

Friday Midday Dairy Market Summary - Class III Trading Lower

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$0.11 Lower
LIVE CATTLE:	$4.80 Lower
DOW JONES:	278 Points Lower
NASDAQ:	80 Points Lower
CRUDE OIL:	$0.38 Lower

MIDDAY MARKET UPDATE:

The block cheese price traded 1.25 cents lower today closing at $1.4650 with 14 loads traded. The barrel cheese price was unchanged at $1.5325 with no loads traded. The dry whey price climbed 0.25 cents, closing at 75.25 cents with 1 load traded. Class III futures are trading anywhere from 17 to 30 cents lower here at the midday point. The butter price was up unchanged at $1.44 with no loads traded. There were 51 unfilled offers and no bids remaining at the close. Grade A nonfat dry milk was unchanged at $1.88 with no loads traded. Class IV futures are mixed from 15 cents higher to 19 cents lower. Butter futures are 0.5 to 1.525 cents lower. Dry whey futures are trading 0.25 cents lower. Cheese futures are 1.7 to 2.4 cents lower. Nonfat dry milk futures are 0.325 to 1.275 cents lower.