Friday Midday Dairy Market Summary - Spot Prices Provide Little Direction

OUTSIDE MARKETS SUMMARY:

CORN:	9 Higher
SOYBEANS:	17 Higher
SOYBEAN MEAL:	$6.30 Higher
LIVE CATTLE:	$0.40 Lower
DOW JONES:	163 Points Higher
NASDAQ:	70 Points Higher
CRUDE OIL:	$0.84 Lower

MIDDAY MARKET UPDATE:

The block cheese price retraced today with a decline of 1.75 cents to close at $1.5475, with one load traded. The barrel cheese price increased a penny to close at $1.5600 with 2 loads traded. The dry whey price increased 0.50 cent to close at 69.00 cents with one load traded. The decrease in the block price quickly turned Class III futures mostly lower, reversing the earlier double-digit gains. The butter price remained unchanged at $1.6500 with no loads traded. There was one unfilled bid and 28 uncovered offers remaining with no one willing to change to accomplish business. Grade A nonfat dry milk increased 0.50 cent to close at $1.5550 with 12 loads traded. Class IV futures have not yet traded. Butter futures are 0.02 cent lower to 1.50 cents higher in very light trade. Dry whey futures are 0.22 cent lower to 1.55 cents higher. Cheese futures are 1.30 cents lower to 0.50 cent higher. Nonfat dry milk futures are 0.75 cent lower to 2.17 cents higher. USDA raised milk production this year to 236.6 billion pounds and next year to 238.1 billion pounds.

Friday Morning Dairy Market Update - Further Strength in Spot Prices

OPENING CALLS:

Class III Milk Futures:	8 to 14 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	3 to 4 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	3 to 5 Lower

MILK:

The strength in Class III milk futures continued into overnight trading, with some contracts posting double-digit gains. There has not been a fundamental change, but cheese buyers may be more aggressive as they look ahead and prepare for later demand. Spot prices are low, and it makes sense to increase ownership and purchase ahead for later demand rather than wait and end up paying more later. Milk production is being impacted by increasing temperatures, but output is expected to remain higher than a year ago. The USDA will release the World Agricultural Supply and Demand report Friday at 11 a.m. CDT. The report will include their estimates for milk production, milk prices, and dairy product prices for this year and next year.

CHEESE:

The strength in cheese prices may continue Friday as the increase on Thursday may bring more buyers into the market with the desire to purchase supplies ahead of further price strength. However, buyers may be cautious as milk supplies are plentiful and cheese output strong. This may limit the upside potential.

BUTTER:

The butter price held steady the past three days, but is expected to increase Friday. There is little reason for the price to fall back as buyer interest is expected to increase. Both domestic and international demand is strong and is expected to remain strong. Churning is slowing as higher temperatures impact milk components and reduce the cream supply.

Thursday Closing Dairy Market Update - May Dairy Exports Increase 14.0%

GENERAL OVERVIEW:

Traders had something to get excited over, resulting in milk futures increasing significantly. The strength in cheese and nonfat dry milk triggered strong buying interest. May dairy exports increased 14.0% from a year earlier, with year-to-date exports up 12.6%.

MILK:

Milk futures posted strong gains in response to the strength of cheese and nonfat dry milk. Volume was good in Class III futures but mostly confined to the August and September contracts. The August contract had over 1,000 contracts traded. May dairy exports on a milk solids equivalent basis were 14.0% above May 2025. Year-to-date exports were 12.6% higher. Year-to-date total export value increased 12.0%, totaling $4.32 billion. There had been concern that exports would struggle from the impact on shipping due to the Iran conflict, but that was not the case. Alternate ways were found as demand remained strong.

AVERAGE CLASS III PRICES:

3 Month:	$16.64
6 Month:	$17.21
9 Month:	$17.28
12 Month:	$17.32

CHEESE:

Cheese exports in May totaled 61,409 metric tons, up 18.4% from May 2025. Year-to-date exports are up 23.7%. The greatest increase in exports was seen for South Korea with a gain of 52%, followed by Mexico with a gain of 29%. Lactose exports increased 26.8%, totaling 40,267 metric tons, with year-over-year exports up 4.9%. Whey exports totaled 55,603 metric tons, up 53.2% from a year earlier. Year-to-date exports are up 24.1%. Whey protein concentrate +80 exports totaled 6,608 metric tons, down 9.5%, with year-over-year exports down 20.5%.

BUTTER:

Butterfat exports in May totaled 15,158 metric tons, up 102.5% over May 2025. Year-to-date exports are up 90.7%. Butterfat exports in May nearly doubled that of May 2025. Exports to MENA (Middle East/North Africa) jumped 767% from a year earlier. Nonfat dry milk/skim milk powder export totaled 49,669 metric tons, down 20.0% from a year earlier, with year-to-date exports up 0.3%. Whole milk powder exports totaled 4,179 metric tons, down 13.0%, with year-to-date exports up 29.8% compared to a year ago.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.25 cents per bushel at $4.5200, November soybeans closed down 10.75 cents at $11.8150, and December soybean meal closed up $4.20 per ton at $315.40. September Chicago wheat closed up 12.00 cents at $6.1975. August live cattle closed down $2.38 at $235.25. August crude oil is down $1.67 per barrel at $71.85. The Dow Jones Industrial Average is up 126 points at 52,487, with the NASDAQ up 336 points at 26,207.