Wednesday Midday Dairy Market Summary - Butter Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	10 Higher
SOYBEANS:	8 Higher
SOYBEAN MEAL:	$9.40 Higher
LIVE CATTLE:	$0.30 Lower
DOW JONES:	458 Points Lower
NASDAQ:	156 Points Lower
CRUDE OIL:	$1.15 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3.00 cents, closing at $1.62 with two loads traded. The barrel cheese price increased 3.00 cents, closing at $1.57 with no loads traded. Blocks have recovered all of the losses from last week. The dry whey price decreased 2.50 cents to close at 63.50 cents with three loads traded. Class III futures are 1.00 cent lower to 10 cents higher. The butter price fell 5.00 cents to close at $1.80 and the lowest price since Feb. 19. There were 19 loads traded. Grade A nonfat dry milk increased 2.00 cents to close at $1.82 with 14 loads traded. There have been 24 loads traded so far this week. This is the highest price since June 14, 2022. Class IV futures are steady, with the only trading activity in the June contract. Butter futures are 0.55-7.50 cents lower. Dry whey futures are steady to 0.85 cent lower. Cheese futures are 1.60 cents lower to 1.60 cents higher.

Wednesday Morning Dairy Market Update - Profit-Taking May Take Place

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	2 to 6 Lower
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	2 to 3 Lower

MILK:

Milk futures have enjoyed some nice support over the past few days, with Class IV futures leading the charge. Class IV futures are in a bullish posture as nonfat dry milk continues to find aggressive buying interest in the spot market. Milk production has not been slowing down and is expected to remain higher than a year ago on Friday's USDA Milk Production report. Temperatures in the West and Southwest are expected to be above normal and break some historical records. This will impact milk output in those areas. However, this may not result in higher milk prices as it may only limit the seasonal production increase in those areas.

CHEESE:

Spot cheese prices have been increasing and may return to the previous highs on buying interest. However, the upside potential may be limited as cheese production increases. If cheese prices can maintain these levels, it will be a victory, as the outlook for milk prices has improved.

BUTTER:

The butter price may not see much strength in the near term as buyers and sellers may be content to take care of business at the current level. However, increasing cream prices and increasing temperatures may reduce cream supplies. Ice cream production is increasing, providing competition for cream supplies.

Tuesday Closing Dairy Market Update - GDT Trade-weighted Average Increases 0.1%

GENERAL OVERVIEW:

Milk futures closed higher following the strength of cheese and nonfat dry milk. The Global Dairy Trade auction trade-weighted average increased 0.1% from the previous event. This was the sixth consecutive increase in the event.

MILK:

The June through November Class III contracts are above $18.00 with the July through November near the mid-$18.00 level. Class IV futures showed April through June contracts above $20.00. This has again improved the outlook for milk prices. However, caution must be exercised as the increases in spot prices have met with resistance at higher prices. Milk production is improving seasonally, and the hope is that demand will increase as well. The Global Dairy Trade auction showed the sixth consecutive increase with a gain today of 0.1%. The average price was $4,330 per metric ton with 19,500 metric tons sold. The Anhydrous milk fat price increased 6.4% to $7,602 per metric ton or $3.45 per pound. The butter price decreased 0.9% to $6,868 per metric ton or $3.12 per pound. There must have been an adjustment made to the price on the previous event, as it was initially reported at $3.05 per pound. Cheddar cheese increased 0.1% to $4,125 per metric ton or $2.23 per pound. Lactose decreased 0.3% to $1.450 per metric ton or $0.66 per pound. Skim milk powder increased 5.2% to $3,409 per metric ton or $1.55 per pound. Whole milk powder decreased 4.0% to $3,709 per metric ton or $1.68 per pound. Mozzarella increased 0.5% to $4,208 per metric ton or $1.91 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$16.99
6 Month:	$17.72
9 Month:	$17.99
12 Month:	$17.88

CHEESE:

The block cheese price is trying to work back up to the high of last week. Spot trading activity has been limited, with sellers either reluctant to offer supplies on the spot market or waiting for higher prices to move supplies. Most cheese plants are running full schedules due to increasing milk receipts. Spot milk is running as much as $5.00 below class. Inventory is increasing seasonally.

BUTTER:

Buyers and sellers seem comfortable doing business at the current price level. Sellers have butter to sell while buyers see value in purchasing at the current price. Butter inventory is increasing, but the increase may not be as much as last year.

OUTSIDE MARKETS SUMMARY:

May corn closed steady at $4.5400, May soybeans closed up 1.75 cents at $11.5700, and May soybean meal closed down $.50 per ton at $311.70. May Chicago wheat closed down 7.50 cents at $5.8975. April live cattle closed up $1.98 at $235.23. April crude oil is up $2.53 per barrel at $96.03. The Dow Jones Industrial Average is up 47 points at 46,993, with the NASDAQ up 105 points at 22,480.