Monday Morning Dairy Market Update - Buying Interest Supports Overnight Futures

OPENING CALLS:

Class III Milk Futures:	10 to 20 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	2 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	6 to 8 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	Mixed

MILK:

The bounce in block cheese on Friday and the strength in butter are providing optimism that seasonal buying may increase. Of course, one day of strength in block cheese does not indicate the trend has changed, but it may indicate buying interest may improve. The milk supply remains plentiful. Greater milk movement to bottling will increase soon to supply school accounts as another school year begins. Schools will reopen mid-month in some areas. Even though more milk will be diverted to bottling, it is not expected to tighten the supply for manufacturing. Higher milk prices will need increased consumer demand for milk and dairy products. It is interesting to see overnight trading volume in the July contract as Tuesday is the last trading day and it is a cash-settled contract. The price will not move much and will adjust to the announced Class III price on Wednesday. This does not provide any specific direction to the market.

CHEESE:

It is uncertain whether the price increase in block cheese on Friday indicates support has been found or whether the market will continue to chop around as buyers and sellers take care of business.

BUTTER:

There has been a lot of trading activity in the spot market for quite some time. Both domestic and international demand has been good, but the price has been in an overall downtrend since March. Seasonal buying should increase over the next month, but it is difficult to determine the extent of the upside price potential.

Friday Closing Dairy Market Update - A Strong Close to the Week

GENERAL OVERVIEW:

It was another very strong day for milk futures. Higher spot prices supported futures prices. Butter had a large volume of trades for the week. Prices used in the calculation of income over feed decreased on the June report.

MILK:

The milk markets had a very strong end to the week. The August and September Class III contracts pushed above $17.00. Class IV futures closed the week above $16.00 in contracts through February. This may set the stage for further gains next week, provided buyers remain aggressive in the cash market. The June Agricultural Prices report was released today. The average corn price was $4.28 per bushel, down $0.20 from May and down $0.19 per bushel from June 2025. The premium/supreme hay price was $239.00 per ton, down $8.00 per ton from May and down $5.00 per ton from a year ago. The All-milk price was $21.10 per cwt, down $0.20 from May and down $0.20 per cwt from June 2025. The soybean meal price will not be released until Monday. That is when the income over feed price can be calculated for the Dairy Margin Coverage program. Other prices to take note of are that the average soybean price was $11.30 per bushel, down from $11.60 in May and up from $10.40 in June 2025. The alfalfa hay price was $198.00 per ton, up $3.00 per ton from May and up $21.00 per ton from June 2025.

AVERAGE CLASS III PRICES:

3 Month:	$16.79
6 Month:	$17.27
9 Month:	$17.35
12 Month:	$17.43

CHEESE:

For the week, blocks decreased 3.50 cents with 43 loads traded. The weekly average price was $1.56. Barrels decreased 8.25 cents with one load traded. The weekly average price is $1.5710. Dry whey increased 1.25 cents with 10 loads traded. The weekly average price is 67.60 cents.

BUTTER:

After a week of substantial volatility, the butter price only increased 0.75 cent from the previous week. Trading activity was heavy with 113 loads changing hands. The weekly average price is $1.4470. Grade A nonfat dry milk was the star of the week with the price increasing 15.75 cents, with 70 loads traded. The weekly average price is $1.4675.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.50 cents per bushel at $4.6400, November soybeans closed down 1.25 cents at $11.8750, and December soybean meal closed down $1.60 per ton at $321.20. September Chicago wheat closed down 24.25 cents at $6.3925. October live cattle closed down $0.20 at $227.25. September crude oil is up $1.08 per barrel at $84.67. The Dow Jones Industrial Average is up 277 points at 52,485, with the NASDAQ up 252 points at 25,374.

Friday Midday Dairy Market Summary - Spot Prices Show Strength

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$4.10 Lower
LIVE CATTLE:	$0.95 Higher
DOW JONES:	301 Points Higher
NASDAQ:	213 Points Higher
CRUDE OIL:	$1.25 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 4.00 cents to close at $1.5725 with 15 loads traded. The barrel cheese price remained unchanged at $1.5475 with no loads traded. The dry whey price increased 1.00 cent to close at $0.6925 with two loads traded. Class III futures are 3-53 cents higher, with September posting the greatest gain. The butter price increased 3.50 cents to close at $1.5150 with five loads traded. Only six uncovered offers were remaining at the close of spot trading. This is the least amount of uncovered offers we have seen for a while. Grade A nonfat dry milk increased 6.00 cents to close at $1.5600 with 17 loads traded. This is the highest price since June 30. Class IV futures are 18-31 cents higher. Butter futures are steady to 6.25 cents higher. Dry whey futures are 0.50 -- 0.75 cent higher. Cheese futures are 0.20 cent lower to 5.00 cents higher. Nonfat dry milk futures are 0.50 -- 4.40 cents higher. The June Agricultural Prices report will be released today.