Thursday Midday Dairy Market Summary - Butter Climbs Higher

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	14 Lower
SOYBEAN MEAL:	$0.80 Higher
LIVE CATTLE:	$1.50 Lower
DOW JONES:	150 Points higher
NASDAQ:	12 Points Higher
CRUDE OIL:	$1.49 Higher

MIDDAY MARKET UPDATE:

Both the block and barrel cheese prices closed steady at $1.4750 and $1.4400 respectively. There were 15 loads of blocks traded and 2 loads of barrels. There were 5 unfilled bids for blocks and 2 uncovered offers remaining at the close of spot trading. The dry whey price declined 1.75 cents, closing at 67.75 cents with 2 loads traded. Class III futures range from 13 cents lower to 8 cents higher. The butter price increased 4.00 cents to close at $1.71 with 23 loads traded. There were 22 unfilled and 21 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 2.0 cents to close at $2.15 with 6 loads traded. Class IV futures are 15 cents lower to 7 cents higher. The increase in spot prices was already factored in, leaving futures mixed. Butter futures are steady to 2.97 cents higher. Dry whey futures are 0.15--0.75 cent higher. Cheese futures have not yet been traded. Today is the last day to trade May futures and options with the Federal Order class prices to be announced on Wednesday.

Tuesday Morning Dairy Market Update - Limited Activity Ahead of Spot Trading

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 10 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 4 Lower
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	Mixecd
Wheat Futures:	4 to 5 Lower

MILK:

Class III milk futures have been under pressure and may remain that way for the near term. There is little reason for cheese buyers to be aggressive and higher milk production and more milk moving to the vat now that schools are closed will keep sufficient cheese supplies readily available to the market. The dryness in many areas has been good for forage harvesting. Hay quality is expected to be very good, resulting in strong milk production. Higher milk production will result in increased dairy product output. Consumer demand will need to remain strong to absorb the supply. Milk prices are not expected to increase in the near term.

CHEESE:

The upside price potential for cheese is limited under the current market fundamentals. Even though domestic demand is good and international demand is strong, there is sufficient supply to meet the demand.

BUTTER:

The butter price has increased nicely over the past week. Hopefully, demand is increasing to the point that buyers will be more aggressive in the spot market. Inventory is 9.0% below a year ago, even though butter output has been strong. This indicates demand is strong and is expected to continue. 

Monday Closing Dairy Market Update - April Income Over Feed is $10.54

GENERAL OVERVIEW:

Class III futures were able to show strength in nearby contracts at the close of trading, but nothing provided a catalyst for strong buying or selling. Class IV futures ended another strong day with significant gains. The income over feed price for April was $10.54.

MILK:

Class IV traders found more direction for a short-term trade from the increase in butter and nonfat dry milk prices. It may not be a change in direction, but it provides sufficient volatility for traders to hopefully make a profit from scalping the market. There is limited expectation for the market to trend higher anytime soon. The average soybean meal price for April was released this morning at $330.28 per ton. This was an increase of $4.13 per ton from March and was $35.25 per ton higher than April 2025. The income over feed price for April was $10.54. This was $0.97 higher than March. There will be no Dairy Margin Coverage payment.

AVERAGE CLASS III PRICES:

3 Month:	$16.73
6 Month:	$17.31
9 Month:	$17.52
12 Month:	$17.52

CHEESE:

It was surprising that the block cheese price remained steady in light of the volume of loads traded on the spot market. The price is at a level where both buyers and sellers are comfortable. Cheese needs to come to the spot market to keep inventory from building at the plant level. The buyers were ready to purchase rather than step back to see if the sellers would lower their offers.

BUTTER:

Butter was able to eke out another minor gain, keeping support under the market. Traders responded with strong buying in butter futures. It may be possible that the trend has changed. However, there is no shortage of supply in the market.

OUTSIDE MARKETS SUMMARY:

July corn closed down 2.75 cents per bushel at $4.4400, July soybeans closed down 6.00 cents at $11.8075, and July soybean meal closed down $3.30 per ton at $326.50. July Chicago wheat closed down 1.75 cents at $6.0875. August live cattle closed up $1.55 at $240.60. July crude oil is up $5.14 per barrel at $92.50. The Dow Jones Industrial Average is up 46 points at 51,079, with the NASDAQ up 114 points at 27,087.