Tuesday Closing Dairy Market Update - April Cold Storage Increased From a Year Ago

GENERAL OVERVIEW:

It was another negative day for milk futures, with Class IV contracts posting greater losses than Class III. The April Milk Production report was bearish. Milk production was up 2.7 percent, with cow numbers up 10,000 head.

MILK:

Milk futures left much to be desired today as the underlying cash provided little support. The strength in dry whey was offset by the weakness in cheese. The strength in butter was offset by the weakness of nonfat dry milk. This left Class III milk futures lower while putting substantial pressure on Class IV futures. The weakness of nonfat dry milk is eliminating a substantial amount of premium from Class IV futures. The April Milk Production report showed the trend for continued higher milk production and cow numbers. There were 5 of the top 24 states that showed a decrease in milk production from 2025. Washington showed the largest decline of 7.0 percent. Pennsylvania declined 2.0 percent, Virginia was down 0.8 percent, Vermont was down 0.5 percent, and New Mexico declined 0.4 percent. The largest percentage increase was seen in Kansas with an increase of 23.7 percent. Oregon was up 7.4 percent, South Dakota gained 6.3 percent, Indiana was up 5.6 percent, and both Colorado and Georgia were up 5.1 percent. The rest of the gains were less than 5.0 percent.

AVERAGE CLASS III PRICES:

3 Month:	$16.79
6 Month:	$17.33
9 Month:	$17.55
12 Month:	$17.58

CHEESE:

The April Cold Storage report showed American cheese inventory increased 12.0 million pounds from March to 817.6 million pounds. This is 1 percent below April 2025. Swiss cheese inventory totaled 24.9 million pounds. This was 115,00 pounds above March and was 8 percent above a year ago. Other cheese inventory totaled 575.2 million pounds, down 1 percent from a year ago. Total cheese inventory reached 1.418 billion pounds, up 12.4 million pounds from March, but down 1 percent from April 2025.

BUTTER:

The spot butter price closed higher with a significant volume of 36 loads changing hands.

The April Cold Storage report showed butter stocks increased 18.3 million pounds from March, totaling 308.2 million pounds. Even though inventory increased, stocks are 9.0 percent lower than a year ago.

OUTSIDE MARKETS SUMMARY:

July corn closed down 5.75 cents per bushel at $4.5750, July soybeans closed down 10.50 cents at $11.8600, and July soybean meal closed down $3.30 per ton at $328.60. July Chicago wheat closed down 10.75 cents at $6.3550. August live cattle closed down $0.45 at $239.15. July crude oil is down $2.71 per barrel at $93.89. The Dow Jones Industrial Average is down 118 points at 50,462, with the NASDAQ up 312 points at 26,656.

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Continues Lower

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$1.80 Lower
LIVE CATTLE:	$1.75 Lower
DOW JONES:	192 Points Lower
NASDAQ:	220 Points Higher
CRUDE OIL:	$2.53 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.4925 with 8 loads traded. The barrel cheese price declined a penny, closing at $1.4700 with no loads traded. The dry whey price increased 0.50 cent to close at 68.50 cents with no loads traded. Class III futures are unchanged to 12 cents lower. The butter price gained 2.50 cents, closing at $1.5600 with 36 loads traded. There were 16 unfilled bids and 25 uncovered offers remaining at the close. The price initially increased to $1.5775 before slipping back by the close of spot trading. Grade A nonfat dry milk declined 3.00 cents to close at $2.0425 with 9 loads traded. There were 5 unfilled bids and 5 uncovered offers remaining at the close. Class IV futures are 36 cents lower to 3 cents higher. Butter futures are 0.40--3.00 cents higher. Dry whey futures are 1.75 cents lower to 0.50 cent higher. Cheese futures are 1.40 cents lower to 0.40 cent higher.

Tuesday Morning Dairy Market Update - Overnight Trade Has Been Active

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 6 Lower
Soybean Futures:	7 to 9 Lower
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	7 to 9 Lower

MILK:

The bearishness of the April Milk Production report may already be factored in after the decline in milk futures over the past week. However, the trend of higher milk production and higher cow numbers continues. This will limit the upside potential for milk prices for the time being. It is uncertain how much more the nation's dairy herd will increase, but it may take some time for the trend to slow. High calf prices are a large driver behind the increase in cow numbers. The result of higher cow numbers is greater milk production. Underlying cash has not been able to find support, and the recent weakness in nonfat dry milk indicates the top of that market has been reached. Overnight trading has been unusually active. May shows over 200 contracts, June over 300 contracts, and July over 100 contracts traded.

CHEESE:

The recent weakness in cheese may not be finished. Even though inventory is slightly below a year ago, there is sufficient supply for demand. Cheese production is increasing as schools close for the summer. Cheese production will not overwhelm the market, as inventory has not exceeded that of a year ago. However, plants want to move supplies quickly to reduce inventory at the plant level.

BUTTER:

There is uncertainty surrounding the butter market. The price has fallen substantially, but it is uncertain whether the market has found support. Sellers continue to move supplies at whatever price they can to keep them from building at the plant level. Churning remains active as cream supplies remain ample