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.

Friday Morning Dairy Market Update - Milk Prices Mixed

OPENING CALLS:

Class III Milk Futures:	1 to 5 Lower
Class IV Milk Futures:	10 to 15 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	2 to 3 Lower
Soybean Meal Futures:	$0.20 to $0.30 Lower
Wheat Futures:	1 to 4 Lower

MILK:

Nonfat Grade A milk is the only cash market to average higher prices this week versus last week. While the Dairy Products report showed most products having higher production in July 2026 versus last year, skim milk powder stood out with a drop of 50.3% from 2025.

CHEESE:

Cheese is trading slightly lower in the overnight trade. Block cheese has gained the last several trading days in the cash market, although still trending lower than last week's average. The Dairy Products report had total cheese production at 1.26 billion pounds of cheese, up 2.1% from a year ago and 2.3% higher month-over-month. Italian-type cheese had the greatest spike in production with an increase of 5.5% above last month and 4.1% above 2025.

BUTTER:

Butter had a nice rebound in cash price after a disappointing week on Thursday trading 3.25 cents higher yet still trending 4 cents lower than last week's average. So far, 82 loads of butter traded in the cash market this week. Overnights are mixed from 1.525 cents lower to 1.85 cents higher.

Thursday Closing Dairy Market Update - Butter Leads the Charge

GENERAL OVERVIEW:

Butter had another positive day in the cash market, trading up 3.25 cents. Futures followed along as well, with some mixed news released from the Dairy Products Report this afternoon.

MILK:

Class III Milk ended up mixed by the afternoon, with conflicting directions from components. Class IV, however, ended up lower on the day. Nonfat Dry Milk traded 2.2 cents to 3.625 cents lower. Dry Whey also fell 0.35 to 1.35 cents lower. On the Dairy Products Report released this afternoon, ice cream was down slightly from production in 2025, Sherbet saw a 13.4% reduction since last year and frozen yogurt increased 1.5%. For dry milk products, skim milk powder was down 50.3% from last year and nonfat dry milk for human consumption was 26.6% higher. Whey products were mixed, with dry whey production up 17.3% and why protein concentrates down 2.2%.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$16.90
9 Month:	$17.09
12 Month:	$17.25

CHEESE:

Cheese had some small gains in the futures market by the close, trading up 0.2 to 1.3 cents higher. On the Dairy Products Report, total cheese output was 1.26 billion pounds, which is 2.1% above last year and 2.3% above last month. Italian type cheese production totaled 551 million pounds, which was an increase of 5.5% above last month and 4.1% above July 2025. American type cheese production came in at 480 million pounds, 1.1% below July 2025 and 0.6% below June 2026.

BUTTER:

Butter production for July was at 189 million pounds. While that is 5.5% higher than last year, it was a major cut of 9% below last month. With the cash and futures market stronger over the last couple of days, these are mixed results going forward to close out the week. On one hand, production is higher than last year, as it should be with the availability of cream, however a drop of 9% from June is a notable change. The market assumes there is plenty of butter available, especially since the spot market has been saturated with offers, however buyers may see this drop in production and assume the bottom is in for nearby price structure.

OUTSIDE MARKETS SUMMARY:

December corn closed down 2.75 cents per bushel at $5.4075, November soybeans closed up 6.00 cents at $13.1625 and December soybean meal closed up $5.90 per ton at $355.50. December Chicago wheat closed down 19.75 cents at $7.5425. October live cattle closed up $4.13 at $214.30. October crude oil is up .29 per barrel at $91.30. The Dow Jones Industrial Average is up 624 points at 53,686 and the NASDAQ is up 366 points at 26,584.