Fluid Milk and Cream - Western U.S. Report 21

California milk production varies from steady to lighter for week 21. Stakeholders indicate warmer temperatures are reducing cow comfort in some areas. May 2026 milk production is up slightly compared to last month. Milk output continues to be up significantly year-over-year. Manufacturers note milk intakes are above expectations but are manageable. Although spot loads remain available, Central Valley processors describe milk volumes as balanced. 

In Arizona and New Mexico, farm level milk output varies from steady to lighter. Some manufacturers are securing spot milk loads. 

Milk production in the Pacific Northwest is steady. Some stakeholders indicate milk volumes are somewhat tight. 

In the mountain states of Idaho, Utah, and Colorado, farm level milk output is steady. Idaho processors report plenty of milk is available to meet needs and components remain strong. Colorado processors report milk volumes remain balanced relative to processing capacities. Class I, II, III, and IV demands vary from steady to lighter throughout the region with the upcoming holiday weekend and summer breaks beginning at educational institutions. 

Cream availability is accommodating buyer needs in the West. Cream demand and multiples are steady. No changes in condensed skim milk availability and demand are reported this week.

Thursday Midday Dairy Market Summary - Nonfat Dry Milk Falls

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$0.90 Lower
LIVE CATTLE:	$3.75Lower
DOW JONES:	265 Points Higher
NASDAQ:	78 Points Higher
CRUDE OIL:	$1.07 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 3.00 cents, closing at $1.54 with 10 loads traded. The barrel cheese price declined 3.50 cents, closing at $1.48 with two loads traded. It has been unusual to have any loads traded for barrels. The dry whey price increased 0.50 cent to close at 68.75 cents with no loads traded. Class III futures are 1-33 cents lower. The butter price declined 2.50 cents to close at $1.5250 with 31 loads traded. Grade A nonfat dry milk fell 11.75 cents to close at $2.0925 with seven loads traded. This is the largest one-day price decline since September 19, 2008. This solidifies that the top is in, and it may indicate that the market could fall faster than it went up. Class IV futures have only traded in the June contract, posting a loss of $0.39. Butter futures are 0.02 – 4.30 cents lower. Dry whey futures are 1.00 - 1.50 cents lower. Cheese futures are 2.10 cents lower to 0.10 cent higher. The April Livestock Slaughter report will be released today, providing the number of dairy cattle slaughtered for the month.

Thursday Morning Dairy Market Update - Weakness May Prevail

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	10 to 15 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk futures have little support with the weakness in the underlying cash. The bounce in the cheese price did not garner much buying interest from traders are it is expected to be short-lived. Milk output is not slowing down and it will not as long as the weather remains good for cow comfort. The April Milk Production report will be released on Friday, indicating the strength of production and the number of cows in the dairy herd. USDA will release the April Livestock Slaughter report Thursday afternoon. The report provides the level of dairy cattle slaughter for the month.

CHEESE:

The bounce in the block cheese price on Wednesday is expected to be short-lived, as there is little reason for buyers to step up and purchase cheese aggressively. Cheese production is increasing as more milk is moving to manufacturing.

BUTTER:

The butter market is dealing with plentiful supplies as churns operate seven days a week. It is not a matter of inventory building substantially, as it remains below a year ago, but manufacturers want to move supplies to the market as quickly as possible and are willing to offer them at lower prices. As long as selling remains aggressive, buyers will hold for lower prices.