Thursday Midday Dairy Market Summary - Barrels Show a Strong Price Increase

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	6 Lower
SOYBEAN MEAL:	Unchanged
LIVE CATTLE:	$0.52 Higher
DOW JONES:	360 Points Lower
NASDAQ:	244 Points Lower
CRUDE OIL:	$3.60 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 0.50 cent, closing at $1.6350 with two loads traded. The barrel cheese price jumped 4.00 cents, closing at $1.6150 with no loads traded. There was one unfilled bid and one uncovered offer in barrels at the close of spot trading. The dry whey price decreased a penny, closing at 69.50 cents with one load traded. Class III futures are mixed from 13 cents lower to 6 cents higher. The butter price continued to show weakness, with the price decreasing 5.50 cents, closing at $1.6450 with 14 loads traded. This is the lowest price since Feb. 10. Grade A nonfat dry milk increased a penny to close at $2.26 with no loads traded. Class IV futures are 4 cents lower to 8 cents higher. Butter futures are 3.75 cents lower to 0.85 cent higher. Dry whey futures are steady to 0.70 cent higher. Cheese futures are 1.2 cents lower to 0.50 cent higher. USDA will release the March Livestock Slaughter report this afternoon.

Thursday Morning Dairy Market Update - Mixed Trade Expected

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	4 to 5 Higher

MILK:

Milk production remained strong in March, running 2.3% above March 2025. Cow numbers increased by 8,000 head, which will keep a significant volume of milk available to the market moving through the spring flush. This direction will continue as the year progresses. Expansions continue to take place as the income from milk and the high price for calves have put many farms in a good financial position. Obviously, it would be nice to see higher milk prices, but the current level of supply and demand has not put the market in a bullish posture. Strong milk output is being absorbed by domestic and international demand, but the current level of demand and production may limit the upside price potential.

CHEESE:

Cheese prices are expected to remain in a range as production is sufficient for demand. The March Cold Storage report will be released on Friday, indicating the amount of increase in inventory. Seasonally, inventory will increase, but the level of increase will indicate demand.

BUTTER:

Sellers continue to offer butter on the spot market. They are moving butter at whatever price they can to limit the buildup of inventory at the plant level. Buyers remain active, but not aggressive. There is no concern over a tightening supply at present. International demand remains strong due to the U.S. price being substantially below the world price.

Wednesday Closing Dairy Market Update - March Milk Production Up 2.3%

GENERAL OVERVIEW:

Milk futures did not increase as much as anticipated with the increase in block cheese and nonfat dry milk. March milk production was 2.3% above March 2025, with cow numbers up 8,000 head from February, totaling 9.621 million head.

MILK:

As the day progressed, Class IV futures weakened as traders seemed to take profits after early price strength. Near the end of the day, the May and June contracts posted double-digit losses. That may not be where they are settled for the day due to the CME settling the contracts two hours before trading closes. That is why the end-of-the-day trading does not always coincide with settlement prices. The March Milk Production report showed production in the top 24 states up 2.4% over March 2025. Production per cow averaged 2,133 pounds, up 7 pounds from a year ago. Cow numbers were 8,000 head more than in February. Milk production in the U.S. increased 2.3% from March 2025. Production per down averaged 2,119 pounds. Cow numbers increased by 8,000 head from February, totaling 9.621 million head. First-quarter milk production was 2.9% higher than the same period in 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.42
6 Month:	$18.12
9 Month:	$18.31
12 Month:	$18.14

CHEESE:

The block cheese price increased but moved within the recent sideways price range. The price is expected to remain supported, but range-bound in the near term. Trading interest has increased with 38 loads traded so far this week. Buyers are purchasing to increase ownership, while sellers want to limit the buildup of inventory at the plant level.

BUTTER:

Butter continues to have a difficult time finding support. It looked like the price was going to settle at another new low this month, but buying interest increased during spot trading, bringing the price up from the lows. There were 75 loads traded so far this week.

OUTSIDE MARKETS SUMMARY:

May corn closed up .50 cent per bushel at $4.5425, May soybeans closed down 10.00 cents at $11.6450 and July soybean meal closed down $4.90 per ton at $316.30. July Chicago wheat closed down 5.75 cents at $6.0700. June live cattle closed down $0.48 at $243.08. June crude oil is up $3.21 per barrel at $92.88. The Dow Jones Industrial Average is up 341 points at 49,490, with the NASDAQ up 398 points at 24,658.