Monday Midday Dairy Market Summary - Butter Slides Further

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$1.80 Higher
LIVE CATTLE:	$2.00 Lower
DOW JONES:	101 Points Lower
NASDAQ:	184 Points Higher
CRUDE OIL:	$1.21 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1.00 cent to close at $1.3250 with one load traded. The barrel price remained unchanged at $1.4525 with no loads traded. The dry whey price increased 1.00 cent to close at 83.50 cents with no loads traded. Class III futures are 5-18 cents higher. The butter price decreased 2.50 cents to close at $1.3150 with 24 loads traded. There were 16 unfilled bids with 125 uncovered offers remaining. That is the most uncovered offers ever remaining at the close of spot trading. Grade A nonfat dry milk remained steady at $2.2200 with one load traded. Class IV futures have not yet been traded. Butter futures are steady to 2.40 cents lower. Dry whey futures are 0.50-0.52 cents higher. Cheese futures are 0.30-1.30 cents higher. Nonfat dry milk futures are 0.97 cent lower to 1.00 cent higher. USDA will release the August Dairy Products report this afternoon.

Monday Morning Dairy Market Update - Market Fundamentals Show Little Change

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	9 to 10 Higher
Soybean Meal Futures:	Steady to $1 Lower
Wheat Futures:	8 to 10 Higher

MILK:

Milk futures are expected to follow a similar pattern as they have over the past weeks. There may be limited upside potential for Class III futures, and Class IV futures may remain supported as long as the nonfat dry milk price remains strong. Current market fundamentals indicate there will be little change anytime soon. Low milk prices and reduced calf prices are impacting farm income, but expansions are continuing, and cow numbers are expected to remain high. The August Dairy Products report will be released this afternoon. It will show the output level for dairy products, indicating demand.

CHEESE:

The block cheese price is expected to remain choppy with little upside price potential for the foreseeable future. Cheese production is increasing as milk production improves. Demand is steady but is expected to improve as the holiday season approaches.

BUTTER:

Butter will follow a similar pattern as cheese with limited upside price potential. Churning is active as more cream is becoming available. Retail demand is showing signs of improving, but it remains to be seen whether it will be sufficient to tighten supply and support the price. 

Friday Closing Dairy Market Update - Forward Pricing Program Expired

GENERAL OVERVIEW:

Class III milk futures did not close the week positively. Strength in the block cheese price was met with skepticism. The block cheese price, nonfat dry milk price, and the dry whey price increased for the week.

MILK:

Traders are not convinced the increase in the block cheese price is going to hold for very long. The pattern has been that price increases are short-lived, and it may continue that way. There is sufficient supply to meet demand, and then some, as cheese inventory increased in August. Milk production continues to outpace a year ago and is expected to remain that way despite the outlook for low milk prices. Culling may increase as farms may reduce some of their cow numbers to reduce feed costs depending on the age of the cow and her milk output. At some point, some of the cows that have been kept in the herd will be culled as calf income may no longer be sufficient to offset the low milk prices. Due to the Farm Bill not having been passed by September 30th, the Dairy Forward Pricing Program has expired. Proprietary handlers establishing new forward contracts on or after October 1, 2026, will not be exempt from paying minimum Federal order prices on milk pooled in the order. This may eliminate proprietary milk plants from offering forward contracts to their patrons.

AVERAGE CLASS III PRICES:

3 Month:	$15.49
6 Month:	$16.10
9 Month:	$16.47
12 Month:	$16.74

CHEESE:

For the week, the block cheese price increased by 0.75 cent with 20 loads traded. The weekly average price is $1.2940. The barrel cheese price remained unchanged for the second consecutive week, with no loads traded. The weekly average price is $1.4525. The dry whey price increased by 2.00 cents with 3 loads traded. The weekly average price is 81.40 cents. This is the highest price since February 9, 2022.

BUTTER:

For the week, the butter price decreased by 6.00 cents with 99 loads traded. The weekly average price is $1.3444. Grade A nonfat dry milk increased 5.00 cents with 16 loads traded. The weekly average price is $2.1995. This is the highest price since May 19th.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.50 cents per bushel at $4.9775, November soybeans closed down 5.75 cents at $12.7825, and December soybean meal closed down $5.80 per ton at $347.50. December Chicago wheat closed up 0.25 cent at $6.8300.

December live cattle closed down $1.70 at $221.48. November crude oil is down $1.63 per barrel at $91.24. The Dow Jones Industrial Average is up 250 points at 51,177, with the NASDAQ up 319 points at 27,191.