Wednesday Closing Dairy Market Update - The May Class III Price is $16.92

GENERAL OVERVIEW:

There was not much for traders to provide price direction. Spot prices were unchanged or lower. The May class prices were higher in all classes.

MILK:

Any hope for a rebound in milk futures was dashed as underlying cash prices did not move much, and the movement that did take place showed weakness. Milk production in some areas of the country continues at spring flush levels. Others surpassed the peak but continue to remain strong. Fluid milk for school accounts has declined substantially as schools are closed for the summer. More milk is consumed at home, but consumption is generally not at the same level as it is in the school systems. Milk for butter and cheese production is plentiful, keeping manufacturing plants running on full schedules. The May Federal Order class prices were released. The Class II price is $20.28, up $1.46 from April and $1.56 higher than May 2025. The Class III price is $16.92, up $0.10 from April, but down $1.65 from a year ago. The Class IV price is $22.32, up $2.10 from April and $4.19 higher than May 2025.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$17.39
9 Month:	$17.50
12 Month:	$17.50

CHEESE:

Trading activity in the spot block cheese market was heavy for the first two days of the week but dried up today. Buyers did not aggressively pursue the market even though sellers did not offer many loads. Buyers are interested in buying but are not interested in bidding higher to get it. Increased cheese production keeps supplies readily available to the market.

BUTTER:

Buyers took advantage of the lower price early in spot trading as they became more aggressive, resulting in the butter holding its recent gains. Churns continue to operate seven days a week, with some now selling some of their cream supply to take advantage of higher premiums from other Class II products.

OUTSIDE MARKETS SUMMARY:

July corn closed down 9.00 cents per bushel at $4.3150, July soybeans closed down 11.25 cents at $11.5400, and July soybean meal closed down $5.40 per ton at $320.80. July Chicago wheat closed down 15.75 cents at $5.8725. August live cattle closed down $1.80 at $237.85. July crude oil is up $2.26 per barrel at $96.02. The Dow Jones Industrial Average is down 621 points at 50,687, with the NASDAQ down 240 points at 26,854.

Wednesday Midday Dairy Market Summary - Butter Remains Resilient

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	8 Lower
SOYBEAN MEAL:	$4.10 Lower
LIVE CATTLE:	$0.22 Lower
DOW JONES:	442 Points Lower
NASDAQ:	266 Points Higher
CRUDE OIL:	$2.44 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 0.75 cent, closing at $1.4675 with no loads traded. Apparently, blocks have not yet found a bottom. The barrel cheese price remained unchanged at $1.44 with no loads traded. The dry whey price slipped 0.25 cent to close at 67.50 with 2 loads traded. Class III futures are 11 cents lower to 7 cents higher. The only gain is seen in the April 2027 contract. The butter price remained steady at $1.7100 with 26 loads traded. The price initially declined to $1.6725 before buyers became aggressive and supported the maket. There were 6 unfilled bids and 26 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk declined 0.50 cent to close at $2.1450 with 5 loads traded. Class IV futures are 9-32 cents lower. Butter futures are 3.25 cents lower to 1.00 cents higher. Dry whey futures are 0.50 cent lower to 0.25 cent higher. Cheese futures are 1.40 cents lower to 0.40 cent higher. The May Federal Order class prices will be announced today.

Wednesday Morning Dairy Market Update - Class III Futures Show Weakness in Overnight Trade

OPENING CALLS:

Class III Milk Futures:	2 to 6 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 1Higher
Soybean Futures:	3 to 4 Higher
Soybean Meal Futures:	Steady to 1 Lower
Wheat Futures:	1 to 2 Lower

MILK:

The Class III market remains under pressure and may remain that way for an extended period of time. Strong milk production, continued expansions, and increased cow numbers will keep milk output higher than a year ago. More milk is moving to the cheese vat with schools closed. This is increasing cheese production and availability. Class IV futures may remain strong as butter may be supported and trending higher. The May Federal Order class prices will be released Wednesday. The trade anticipates a Class III price of $16.91 and a Class IV price of $22.36.

CHEESE:

Sellers of cheese continue to offer supplies to the spot market to move increased production and limit building inventory. Even though a significant volume of blocks has come to the spot market over the past two days, buyers have been willing to purchase them rather than hold for lower prices. Higher output may be met with increased demand.

BUTTER:

Buyers have needed to step up to purchase due to increased immediate demand, and are also turning their attention to upcoming demand through the rest of the year. If both domestic and international demand remain strong, buyers will need to increase ownership to build inventory for later in the year. This may continue to support the price.