Tuesday Midday Dairy Market Summary - Steady Prices Provide Little Support

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	13 Lower
SOYBEAN MEAL:	$2.90 Lower
LIVE CATTLE:	$1.12 Higher
DOW JONES:	1032 Points Higher
NASDAQ:	674 Points Higher
CRUDE OIL:	$4.65 Lower

MIDDAY MARKET UPDATE:

Both the block and barrel cheese prices remained unchanged at $1.5600 and $1.5475 respectively. There were three loads traded of blocks and no loads of barrels. The dry whey price closed at 69.00 cents, down 0.25 cent with no loads traded. Class III milk futures are mixed, ranging from 21 cents lower to 2 cents higher. The butter price remained unchanged at $1.4850 with no loads traded. Manufacturers want to sell butter, but not aggressively. There were unfilled bids for 58 loads remaining at the close of spot trading. The Grade A nonfat dry milk price increased 4.50 cents, closing at $1.5700 with 10 loads traded. Class IV futures have only had trading activity in July and August at unchanged prices. Butter futures are 1.25 -- 4.30 cents higher. Dry whey futures have not yet traded. Cheese futures are 0.20 -- 1.70 cents lower. Nonfat dry milk futures are steady to 3.50 cents higher. July futures and options have ceased trading, with August taking over as the lead month. The July Federal Order class prices will be released today.

Tuesday Morning Dairy Market Update - Traders Show Overnight Optimism

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	6 to 8 Lower
Soybean Meal Futures:	$2 to $4 Lower
Wheat Futures:	2 to 4 Lower

MILK:

There is ample milk supply to meet the needs of bottling and manufacturing. Milk output is lower due to higher temperatures, but higher cow numbers and higher per-cow production keep milk from being tight. Milk components have decreased. The decrease in butterfat content has tightened the cream supply. The demand for fluid milk from bottlers will increase as they prepare for the reopening of schools. This will reduce the amount available for the cheese vat and other dairy product production. However, this may not provide much support to the market unless demand improves significantly.

CHEESE:

The weakness in block cheese on Monday may indicate the market may remain choppy. Some feel that buying interest will increase as buyers prepare for expected fall and holiday demand. However, with sufficient supplies available, that buying may be delayed.

BUTTER:

Cream supplies have tightened, but it may not be sufficient to reduce the supply available for butter production. Butter inventories have been below a year ago, but buyers have not been concerned over it. Manufacturers continue to offer butter on the spot market.

Monday Closing Dairy Market Update - June Income Over Feed Was $10.88

GENERAL OVERVIEW:

Class III futures closed mixed while Class IV futures closed lower in most contracts. Traders resigned to the fact that the market may not be ready to trend higher. Tuesday is the last day to trade July futures and options.

MILK:

Optimism was revived last week as both the underlying cash and futures increased. There were hopes that increased buying interest would support the market. Class III futures traded higher in overnight trading in anticipation that spot prices would see continued strength. However, milk supplies remain sufficient for demand, limiting concerns over supply tightness. Higher prices will increase seller interest, limiting the upside potential. The average soybean meal for June was released at $319.68 per ton. This was down $19.04 per ton from May, but up $38.98 per ton from June 2025. This price was needed to finalize the income over feed price for June. The income over feed price was $10.88, up $0.26 from May and the highest price since August 2025. Tuesday is the last trading day for July futures and options, with the Federal Order class prices announced on Wednesday.

AVERAGE CLASS III PRICES:

3 Month:	$16.71
6 Month:	$17.18
9 Month:	$17.30
12 Month:	$17.39

CHEESE:

There is no indication whether the block cheese price will slip back again or whether seasonal buying interest could increase. Even if buyers are more aggressive, the price may not increase by leaps and bounds as cheese supplies are sufficient for demand and likely will remain that way.

BUTTER:

Last week, the butter price only increased 0.75 cent from the previous week. The weakness today keeps the market in a downtrend. The sellers in the spot market that were absent on Friday showed up again today with offers above the market. The positive aspect is that they were not aggressive, or the price could have been under further pressure.

OUTSIDE MARKETS SUMMARY:

December corn closed up 8.50 cents per bushel at $4.7250, November soybeans closed up 4.75 cents at $11.9225 and December soybean meal closed up $0.40 per ton at $321.60. September Chicago wheat closed up 11.75 cents at $6.5100. October live cattle closed down $0.53 at $226.73. September crude oil is down $4.71 per barrel at $79.96. The Dow Jones Industrial Average is up 693 points at 53,178, with the NASDAQ up 540 points at 25,914.