Wednesday Midday Dairy Market Summary - Nonfat Dry Milk Falls

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	7 Higher
SOYBEAN MEAL:	$1.70 Higher
LIVE CATTLE:	Unchanged
DOW JONES:	139 Points Higher
NASDAQ:	62 Points Lower
CRUDE OIL:	$1.24 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged during spot trading, with no loads traded in barrels, but 21 loads traded in blocks. The dry whey price remained unchanged at 68.50 cents with no loads traded. Class III futures are 3 -- 26 cents lower in moderate trading activity. The butter price declined 1.75 cents to close at $1.6800 with 22 loads traded. The Grade A nonfat dry milk price fell 9.50 cents to close at $1.5350 with 19 loads traded. This is the lowest price since February 4th. Further weakness is expected in the near term. Class IV futures are 5 -- 25 cents lower. Futures have not been under pressure in relation to the decline in spot prices, as the weakness on Tuesday had much of this already factored in. Butter futures are 1.92 cents lower to 1.97 cents higher. Dry whey futures are 1.00 -- 1.10 cents lower. Nonfat dry milk futures are 2.52 -- 5.02 cents lower. Cheese futures are 2.60 cents lower to 0.50 cent higher.

Wednesday Morning Dairy Market Update - Traders Show Little Interest in Overnight Market

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	10 to 15 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	Mixed
Soybean Meal Futures:	Mixed
Wheat Futures:	2 to 3 Higher

MILK:

Milk production continues to roll along, exceeding last year's level. Hot weather is affecting milk production, but it is not expected to tighten the milk supply enough to cause shortages for bottling and manufacturing. Farms have done a significantly better job keeping cows cool and improving feed intakes during the summer. Milk production is expected to exceed that of a year ago throughout the rest of this year. Spot milk supplies are expected to tighten, and prices are expected to increase as manufacturers look for extra supply to maintain production schedules and plant efficiency. However, the increase in spot prices may not have much impact on milk prices. The June Federal Order class prices will be announced today.

CHEESE:

Cheese prices are expected to have limited upside potential for the time being. Manufacturers do not want plant inventories to build and will move them to the spot market. This may leave buyers less aggressive as they do not see supplies tightening anytime soon. Cheese prices may remain choppy.

BUTTER:

It seems there is greater interest from buyers to purchase butter for upcoming demand. That may provide support to the price. However, churning is active, and supplies are sufficient. Manufacturers want to limit building inventory and continue to offer loads on the spot market. Hopefully, demand will increase, and buyers will remain aggressive.

Tuesday Closing Dairy Market Update - May Income Over Feed Price Was $10.62

GENERAL OVERVIEW:

Class IV futures came under increasing pressure as the day progressed, posting a day of substantial losses. The May income over feed price was $10.62.

MILK:

Class III milk futures were lower despite a slight increase in the block cheese price and a steady dry whey price. Class IV futures took a beating in response to a slight decline in butter and a significant decline in nonfat dry milk. Some contracts fell over 70 cents, with others over 80 cents by the end of the day. The average soybean meal price for May was released at $338.72 per ton. This was an increase of $8.44 per ton from April and $49.97 per ton higher than May 2025. This was the last price needed to determine income over feed for the Dairy Margin Coverage program. The May income over feed was $10.62. It would seem as if the income over feed price would be lower, but we need to realize this was based on May prices and not current prices. The June Federal Order class prices will be announced on Wednesday.

AVERAGE CLASS III PRICES:

3 Month:	$16.35
6 Month:	$16.97
9 Month:	$17.11
12 Month:	$17.17

CHEESE:

Cheese prices may continue to struggle due to supplies being sufficient for demand. Buyers have been complacent and not willing to build inventory. The upside price potential may be limited in the near term.

BUTTER:

The continued increase in butter and the large jump in the nonfat dry milk price set the stage for higher prices, as buyers may step into the market to purchase to get ahead of increasing prices. Seasonal buying may also be taking place. Increasing temperatures will impact the butterfat level in milk, which could reduce cream supplies.

OUTSIDE MARKETS SUMMARY:

July corn closed down 10.75 cents per bushel at $4.0200, November soybeans closed down 17.25 cents at $11.3900, and July soybean meal closed down $2.30 per ton at $304.70. September Chicago wheat closed down 10.00 cents at $5.7975. August live cattle closed down $2.25 at $243.58. August crude oil is up $1.52 per barrel at $70.75. The Dow Jones Industrial Average is up 307 points at 52,183, with the NASDAQ up 523 points at 25,820.