Thursday Morning Dairy Market Update - Mixed Trading Activity Expected

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Lower
Soybean Futures:	6 to 7 Lower
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	1 to 2 Lower

MILK:

Milk futures are likely to continue following the same pattern as the past few days. Limited price movement is expected in the spot market. Business is being done with buyers and sellers comfortable at the current price levels. Milk production shows no signs of slowing down. Dairy demand remains strong and increasing in some categories. However, demand is insufficient to utilize production and tighten the market. This is expected to continue through the summer as end-users see no need to be concerned over supply.

CHEESE:

Cheese prices have been unable to increase. Cheese that is offered on the spot market is being absorbed without buyers having to bid up to obtain it. When a limited number of loads are offered at higher prices, the buyers are not interested in increasing their bids to purchase them.

BUTTER:

Butter has been able to hold its gains, but the upside price potential may be limited. However, if demand remains strong and increases during the second half of the year, the price may see further strength as buyers step up to increase ownership to meet that demand. Buying interest should provide support to the market.

Wednesday Closing Dairy Market Update - The May Class III Price is $16.92

GENERAL OVERVIEW:

There was not much for traders to provide price direction. Spot prices were unchanged or lower. The May class prices were higher in all classes.

MILK:

Any hope for a rebound in milk futures was dashed as underlying cash prices did not move much, and the movement that did take place showed weakness. Milk production in some areas of the country continues at spring flush levels. Others surpassed the peak but continue to remain strong. Fluid milk for school accounts has declined substantially as schools are closed for the summer. More milk is consumed at home, but consumption is generally not at the same level as it is in the school systems. Milk for butter and cheese production is plentiful, keeping manufacturing plants running on full schedules. The May Federal Order class prices were released. The Class II price is $20.28, up $1.46 from April and $1.56 higher than May 2025. The Class III price is $16.92, up $0.10 from April, but down $1.65 from a year ago. The Class IV price is $22.32, up $2.10 from April and $4.19 higher than May 2025.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$17.39
9 Month:	$17.50
12 Month:	$17.50

CHEESE:

Trading activity in the spot block cheese market was heavy for the first two days of the week but dried up today. Buyers did not aggressively pursue the market even though sellers did not offer many loads. Buyers are interested in buying but are not interested in bidding higher to get it. Increased cheese production keeps supplies readily available to the market.

BUTTER:

Buyers took advantage of the lower price early in spot trading as they became more aggressive, resulting in the butter holding its recent gains. Churns continue to operate seven days a week, with some now selling some of their cream supply to take advantage of higher premiums from other Class II products.

OUTSIDE MARKETS SUMMARY:

July corn closed down 9.00 cents per bushel at $4.3150, July soybeans closed down 11.25 cents at $11.5400, and July soybean meal closed down $5.40 per ton at $320.80. July Chicago wheat closed down 15.75 cents at $5.8725. August live cattle closed down $1.80 at $237.85. July crude oil is up $2.26 per barrel at $96.02. The Dow Jones Industrial Average is down 621 points at 50,687, with the NASDAQ down 240 points at 26,854.

Wednesday Midday Dairy Market Summary - Butter Remains Resilient

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	8 Lower
SOYBEAN MEAL:	$4.10 Lower
LIVE CATTLE:	$0.22 Lower
DOW JONES:	442 Points Lower
NASDAQ:	266 Points Higher
CRUDE OIL:	$2.44 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 0.75 cent, closing at $1.4675 with no loads traded. Apparently, blocks have not yet found a bottom. The barrel cheese price remained unchanged at $1.44 with no loads traded. The dry whey price slipped 0.25 cent to close at 67.50 with 2 loads traded. Class III futures are 11 cents lower to 7 cents higher. The only gain is seen in the April 2027 contract. The butter price remained steady at $1.7100 with 26 loads traded. The price initially declined to $1.6725 before buyers became aggressive and supported the maket. There were 6 unfilled bids and 26 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk declined 0.50 cent to close at $2.1450 with 5 loads traded. Class IV futures are 9-32 cents lower. Butter futures are 3.25 cents lower to 1.00 cents higher. Dry whey futures are 0.50 cent lower to 0.25 cent higher. Cheese futures are 1.40 cents lower to 0.40 cent higher. The May Federal Order class prices will be announced today.