Tuesday Midday Dairy Market Summary - Milk Futures Show Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$0.80 Lower
LIVE CATTLE:	$1.45 Higher
DOW JONES:	155 Points Higher
NASDAQ:	97 Points Higher
CRUDE OIL:	$2.25 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3.00 cents, closing at $1.59 with no loads traded. There were six unfilled bids, with no uncovered offers. The barrel cheese price increased 1.00 cents, closing at $1.54 with no loads traded. There was one unfilled bid and no uncovered offer remaining. The dry whey price remained unchanged at 66.00 cents with no loads traded. Class III futures are unchanged to 25 cents higher. The butter price remained steady at $1.85 with 17 loads traded. There were five unfilled bids and five uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 0.50 cent to close at $1.80 with one load traded. Class IV futures are 16 cents lower to 20 cents higher. Butter futures are taking a beating, ranging from 0.15-4.00 cents lower. Dry whey futures are 0.25-0.75 cent higher. Cheese futures are 0.10 cent lower to 2.00 cents higher.

Tuesday Morning Dairy Market Update - Overnight Trade Shows Optimism

OPENING CALLS:

Class III Milk Futures:	10 to 15 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	4 to 12 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	Steady to 1 Higher

MILK:

Class III milk futures posted mostly double-digit gains overnight. The expectation for future strength in spot cheese may be influencing trader buying interest. Volume is good for overnight activity. However, rather than a change in the market direction, it may maintain a choppy market. It would be surprising to see sustained strength in spot cheese and butter prices as milk production increases seasonally. The Class IV price is another story, as strong support stems from demand for nonfat dry milk. Futures have recovered their recent losses and are poised to resume the uptrend.

CHEESE:

Spot cheese prices may find strength, but it may be limited. Higher cheese production should keep a sufficient supply readily available for demand and also increase inventory. Inventory seasonally increased during the first half of the year.

BUTTER:

The butter price is low enough to generate buying interest, but the buyers may not be as aggressive as they have been. The high volume of loads on the spot market may have allowed buyers to build a supply cushion that may leave them less aggressive moving forward. However, lower retail prices have improved consumer demand.

Monday Closing Dairy Market Update - January Dairy Export Increase 12%

GENERAL OVERVIEW:

Milk futures were higher due to the strength in block cheese and nonfat dry milk. The April and May Class IV contracts are now above $20.00. January exports increased 12%.

MILK:

Milk futures continued the strength of Friday, supported by higher block cheese and nonfat dry milk prices. Butter has a minor influence, but the real support came from Grade A nonfat, gaining 3.00 cents and moving to the highest price since July 1, 2022. Class IV futures have recovered all of the previous losses, with the April and May contracts above $20.00. Class III futures are expected to continue to chop around in a sideways pattern, moving through the spring flush. January dairy exports on a milk solids basis were 12% higher than January 2025. The value of exports increased by 4.0% to $740 million. There may be some challenges facing dairy exports as the conflict in Iran and elevated fuel prices may impact international demand.

AVERAGE CLASS III PRICES:

3 Month:	$16.82
6 Month:	$17.53
9 Month:	$17.86
12 Month:	$17.77

CHEESE:

January cheese exports totaled 51,688 metric tons, up 10.7% from January 2025. Lactose exports totaled 32,986 metric tons, an increase of 3.6% from a year earlier. Whey exports totaled 45,048 metric tons, up 7.4% from a year ago. Whey protein concentrate +80 exports totaled 5,320 metric tons, down 36.1% from January 2025.

BUTTER:

Butterfat exports totaled 13,776 metric tons, up 94.0% above January 2025. Strong exports are expected to continue as the U.S. price remains attractive to international demand. Nonfat dry milk/skim milk powder exports totaled 55,767 metric tons, up 19.2% from a year ago. Whole milk powder exports were up 161.5% over January, totaling 3, 242 metric tons.

OUTSIDE MARKETS SUMMARY:

May corn closed down 13.25 cents per bushel at $4.5400, May soybeans closed down 70.00 cents at $11.5525 and May soybean meal closed down $10.50 per ton at $312.20. May Chicago wheat closed down 16.50 cents at $5.9725. April live cattle closed up $2.35 at $233.25. April crude oil is down $4.39 per barrel at $94.32. The Dow Jones Industrial Average is up 388 points at 46,946, with the NASDAQ is up 269 points at 22,374.