Wednesday Closing Dairy Market Update - Markets Decline

GENERAL OVERVIEW:

Initially morning futures trade was higher across the board but falling spot market prices eventually put pressure on the market and futures slid lower into the afternoon.

MILK:

Class III futures had some early strength in the day by support from higher cheese prices. Eventually cheese became weaker and brought Class III down with it but late day trade gained 13 cents on the November contract. At last call Dry Whey traded mixed today, in spite of the spot market falling 3.25 cents, yet there was limited trading activity after the spot market settled. Nonfat Dry Milk attempted to buck the trend with higher settlements on some futures months but late-day trade did lose ground with the rest of the market. The spot market was 2 cents lower for NDM. Class IV futures did not trade today however, bids and offers indicated that prices were flat.

AVERAGE CLASS III PRICES:

3 Month:	$16.78
6 Month:	$16.75
9 Month:	$16.87
12 Month:	$17.08

CHEESE:

The spot market confirmed the nearby strength of cheese demand as both cheddar blocks and barrels increased 0.5 cent in the face of the rest of the products trading lower for the day. Futures showed some strength in the face of the bearish tone from other dairy markets but eventually joined the crowd in weaker prices by the afternoon with a late pull higher in the nearby months.

BUTTER:

Butter futures were lower today, trading 0.75 to 1.625 cents lower on the day. Market is responding to the spot market trade which was off by 2.5 cents. 16 loads traded and while there were still 7 bids remaining, the sellers really came to the market today. At the close there were 147 loads being offered yet. This huge amount of butter being offered on the spot market trade sets a bearish tone that sellers have plenty of product to move and implies that buyers can be patient at these prices.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.00 cents per bushel at $4.5175, January soybeans closed down 5.00 cents at $12.3800 and December soybean meal closed up $1.10 per ton at $335.70. December Chicago wheat closed down 11.25 cents at $5.9900.

December live cattle closed down $3.53 at $227.33. December crude oil is up 2.89 per barrel at $102.79. The Dow Jones Industrial Average is up 84 points at 52,462 and the NASDAQ is up 7 points at 26,485.

Wednesday Midday Dairy Market Summary - Mixed Cash Markets

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$41.70 Higher
LIVE CATTLE:	$2.10 Lower
DOW JONES:	138 Points Lower
NASDAQ:	1 Point Higher
CRUDE OIL:	$3.08 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased by 0.5 cents to close at $1.7450 with 3 loads traded. The barrel cheese price was 0.5 cents higher at $1.7250 with no loads traded. Dry Whey decreased by 3.25 cents closing at 84.25 cents with no loads traded. Class III futures are 3 cents to 28 cents higher. The butter price decreased by 2.5 cents, closing at $1.2850 with 16 loads traded. There were 7 bids and 147 offers remaining at the close. Grade A nonfat dry milk decreased 2 cents to close at $2.0400 with 5 loads traded. Class IV futures have not yet been traded today. Butter futures are 0.4 to 1.9 cents lower. Dry whey futures are 0.85 cents lower to 0.7250 cents higher. Cheese futures are 0.1 to 1.6 cents higher. Nonfat dry milk futures are 0.3 to 1.85 cents lower.

Wednesday Morning Dairy Market Update - Investments Increasing

OPENING CALLS:

Class III Milk Futures:	2 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	0 to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 3 Higher
Soybean Futures:	3 to 7 Higher
Soybean Meal Futures:	$0.40 to $1.00 Higher
Wheat Futures:	1 to 4 Higher

MILK:

Many states are expected to upgrade and add manufacturing infrastructure over the next four years with the biggest investments allocated for milk and cream infrastructure. More processing plants and bigger capacity are planned to help with both the growing milk production and the increased demand seen worldwide. Technology and innovation lead the charge as the industry is expected to change rapidly by 2035, adding new capabilities to support anticipated needs. Many jobs are expected to be created from these investments as the U.S. Bureau of Labor Statistics projects a 5.6% growth expected. Not a lot of activity has happened on overnight trade. Class III November is up 3 cents. Nonfat dairy milk (NDM) is trading 0.55 to 1.67 cents higher. No other products have traded yet.

CHEESE:

Cheese is expected to continue with volatile prices over the coming months. Holiday buying is helping the cash market with increased demand seen in mozzarella, parmesan and blue cheese. Cheddar blocks have been driving nearby prices for cheese and Class III futures as spot buyers look for opportunities to buy products nearby.

BUTTER:

Butter futures have climbed from Oct. 8 lows with increase buying in the spot market as well as some tightness in butter supplies in the short term. Stocks are down from last month. However, the overall market sentiment is bearish. Production is up 6.3% when compared to August 2025; however, the Cold Storage report showed inventories up 16% when compared to September 2025. The monthly data has inventory falling from August as well as production falling from July, but the overall story is bearish year over year.