Monday Midday Dairy Market Summary - Weakness in Butter Eliminates the Gains

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$2.40 Higher
LIVE CATTLE:	$2.25 Higher
DOW JONES:	189 Points Lower
NASDAQ:	25 Points Lower
CRUDE OIL:	$1.58 Higher

MIDDAY MARKET UPDATE:

Both the block and barrel cheese prices remained unchanged at $1.6725 and $1.5925, respectively. No loads were traded in either category. There was only one unfilled bid for a load of blocks with no uncovered offers in either category. The dry whey price increased 0.25 cent to close at 69.00 cents. Class III futures are 27 cents lower to 3 cents higher with only the December contract showing a gain. The butter price declined 3.75 cents, closing at $1.7525 with 20 loads changing hands. This moved the price back to the level it was last Wednesday. Grade A nonfat dry milk declined a penny to close at $1.9625 with no loads traded. Class IV futures are 11 cents lower in both the May and June contracts and are the only contracts that have been traded. Butter futures are 0.05-4.02 cents lower. Dry whey futures are 1.02 cents lower to 0.22 cent higher. Cheese futures are 2.22 cents lower to 0.10 higher.

Monday Morning Dairy Market Update - Overnight Trade Shows Mixed Signals

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Overnight Class III milk futures were stronger in nearby contracts and weaker in later contracts. Activity was good with over 200 contracts traded in May and over 100 contracts in June and July. There was no significant fundamental change over the extended weekend, with traders anticipating further support in underlying cash. Milk production should continue to increase seasonally as the spring flush continues.

CHEESE:

Cheese demand has been good, resulting in an increase in inventory at a lower pace than a year ago. This continues to provide support to cheese prices. However, that support may be limited as buyers in the spot market may reach a threshold. Cheese production is higher than a year ago as higher milk receipts are increasing cheese production schedules.

BUTTER:

The butter price is floundering as sellers continue to offer supplies to the spot market. Buyers have not had to be aggressive and have been able to purchase substantial volumes of butter for improved demand, as well as to put into inventory in some cases. However, inventory remains significantly lower than a year ago, but that is not impacting the price.

Thursday Closing Dairy Market Update - Butter, Cheese Production Exceed a Year Ago

GENERAL OVERVIEW:

Class IV futures closed mostly lower despite the increase in butter and nonfat dry milk prices. Class III futures closed higher for the week. The February Dairy Products report showed an increase in the production of butter and cheese from February 2025.

MILK:

Class III futures closed higher for the week while Class IV futures closed lower. The outlook for Class III milk prices has improved significantly, with some contracts moving to new highs. However, caution needs to be exercised as increasing milk production may limit the upside price potential. But even with increasing cow numbers and milk output significantly higher than a year ago, prices are trending higher. The improved outlook will keep farmers pushing for higher milk production and increasing cow numbers. Beef-on-dairy calves continue to bring exceptional prices and are expected to continue to do so. Minnesota's largest dairy farm has applied to build the largest operation in the state. The application is for a feedlot and a dairy with a capacity for 18,855 milking cows. Of course, this expansion creates concerns about the environmental impact it may have.

AVERAGE CLASS III PRICES:

3 Month:	$18.13
6 Month:	$18.57
9 Month:	$18.63
12 Month:	$18.14

CHEESE:

For the week, blocks increased 9.00 cents with 15 loads traded. The weekly average price is $1.6306. Barrels increased 2.75 cents with no loads traded. The weekly average price is $1.5856. Dry whey slipped 0.25 cent with no loads traded. The weekly average price is 68.88 cents. The February Dairy Products report showed American cheese production totaling 451 million pounds, up 1.9% from February 2025. Italian-type cheese production totaled 506 million pounds, up 6.8% from a year ago. Total cheese output reached 1.16 billion pounds, up 3.9% from a year earlier. Dry whey output reached 67.3 million pounds, up 12.0%.

BUTTER:

For the week, butter declined 3.50 cents with 55 loads traded. The weekly average price is $1.7856. Grade A nonfat dry milk gained 5.00 cents with 5 loads traded. The weekly average price is $1.9450. Butter production in February totaled 221 million pounds. This was 9.1% above February 2025. Nonfat dry milk output reached 159 million pounds, up 8.7%. Skim milk powder output totaled 28.2 million pounds, down 8.3% from a year earlier.

OUTSIDE MARKETS SUMMARY:

May corn closed down 2.00 cents per bushel at $4.5225, May soybeans closed down 5.00 cents at $11.6350, and May soybean meal closed down $3.00 per ton at $315.20. May Chicago wheat closed up .75 cent at $5.9825. June live cattle closed up $1.98 at $246.33. May crude oil is up $11.63 per barrel at $111.75. The Dow Jones Industrial Average is down 61 points at 46,505, with the NASDAQ up 38 points at 21,879.