Wednesday Midday Dairy Market Summary - Dry Whey Moves to the Highest Price Since 2022

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$0.40 Higher
LIVE CATTLE:	$1.92 Higher
DOW JONES:	328 Points Lower
NASDAQ:	338 Points Lower
CRUDE OIL:	$1.29 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.75 cent to close at $1.3575 with 7 loads traded. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price increased 1.00 cents to close at 79.75 with 2 loads traded. This is the highest dry whey price since February 23, 2022. Class III futures are mixed, ranging from 14 cents lower to 9 cents higher. The butter price increased 2.50 cents to close at $1.3650 with 33 loads traded. Butter may have turned a corner. There were 60 unfilled bids and 10 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 2.50 cents to close at 2.1500 with 6 loads traded. Class IV futures are 1-41 cents higher in active trading. Butter futures are 0.50 cent lower to 1.12 cents higher. Dry whey futures are steady to 0.25 cent higher. Cheese futures are 1.40 cents lower to 0.10 cent higher. Nonfat dry milk futures are 1.67 -- 3.92 cents higher. 

Wednesday Morning Dairy Market Update - Uncertainty Dominates the Market

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	6 to 8 Lower
Soybean Futures:	8 to 9 Lower
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	9 to 11 Lower

MILK:

Milk production continues to increase. The increase is due to more cows in the nation's dairy herd. Milk production was expected to be higher in the August milk production report, but the increase in cow numbers was not expected. Low milk prices have not thwarted the desire to increase cow numbers. The hope is that lower milk prices will be short-lived, but not according to the current futures market. The highest Class III price seen through 2027 is $17.59. That will be much better than the $15.72 price we are looking at for October, but still nothing to get excited about. Class IV futures are better, but do show contracts through 2027 no higher than $18.50.

CHEESE:

There is little reason for cheese buyers to be aggressive in th spot market. The supply of cheese is plentiful, with current demand being met and supplies being purchased for later demand. As milk production increases, cheese production will increase, resulting in higher inventory through the end of the year than a year ago.

BUTTER:

The price is only 4 cents from the low that was last seen in early January. Buyers are active in the spot market, but not aggressive. They see no reason to be aggressive due to sufficient butter available to the market. Butter output is slowly increasing as the butterfat content in milk improves and cream supply increases.

Tuesday Closing Dairy Market Update - August Milk Production Up 1.7%

GENERAL OVERVIEW:

Class IV futures were higher with double-digit gains in the traded contracts. The strength in nonfat dry milk continues to support the market. The August Milk Production report was bearish, with milk production up 1.7% and cow numbers increasing substantially.

MILK:

The August Milk Production report was released and did not provide a positive outlook for prices. Milk production in the top 24 states was 1.8% higher than August 2025. Production totaled 19.2 billion pounds. Milk output per cow averaged 2,070 pounds, or 4 pounds higher than August 2025. Cow numbers increased by 15,000 head from July and were 151,000 head more than a year ago. U.S. milk production totaled 19.9 billion pounds, up 1.7% from August 2025. Milk output per cow averaged 1 pound below a year ago. Cow numbers reached 9.71 million head, up 167,000 from a year ago and 15,000 more than July. This is a bearish report as cow numbers continue to expand. The hot weather in August impacted milk output per cow, but should rebound in the coming months. Of the top 24 states, seven states showed reduced milk production. Utah was down 3.6%; Arizona was down 3.1%; Idaho was down 0.8%; California was down 0.7%; Vermont was down 0.5%; New Mexico was down 0.4%; and Washington was down 0.2%. Kansas showed the largest increase of 13.9% from a year ago, followed by South Dakota with a gain of 8.4%.

AVERAGE CLASS III PRICES:

3 Month:	$15.95
6 Month:	$16.21
9 Month:	$16.49
12 Month:	$16.71

CHEESE:

The increasing milk supply will keep cheese production strong. Time is running out to see a seasonal increase in prices, as the strong buying activity usually peaks in October. Cheese production is outpacing demand. Buyers see no need to be concerned over supplies and will continue to purchase for later demand and as needed without chasing the market higher.

BUTTER:

The butter price may revisit the low from early January before it finds support. The price at the close of today is just 4 cents above that level. The low butter price has not been enough to stimulate sufficient demand and tighten the supply.

OUTSIDE MARKETS SUMMARY:

December corn closed down 6.25 cents per bushel at $5.3675, November soybeans closed down 2.50 cents at $13.2550, and December soybean meal closed up $2.30 per ton at $370.70. December Chicago wheat closed down 9.50 cents at $7.1725. December live cattle closed down $2.55 at $219.45. November crude oil is down $2.56 per barrel at $89.81. The Dow Jones Industrial Average is down 185 points at 51,864 with the NASDAQ up 122 points at 27,244.