Friday Closing Dairy Market Update - Class III Futures Showed Further Losses

GENERAL OVERVIEW:

Class III milk futures closed mixed, experiencing some pressure from the slight decline in cheese prices. Class IV futures came under pressure as the day progressed due to the weakness in nonfat dry milk, as traders focused on the weakness rather than the strength of butter. July milk production was 2.2% above a year ago.

MILK:

Milk futures closed the week without fanfare. Class IV futures showed weakness as traders focused on the weakness of nonfat dry milk. July milk production in the top 24 states was 2.3% higher than a year ago, totaling 19.4 billion pounds. Milk production in June was revised 0.7% higher, increasing 3.1% from June 2025. That was an unusually large revision. Milk production per cow in July averaged 2,093 pounds, or 5 pounds above a year ago. Cow numbers increased by 2,000 head, totaling 9.27 million head. U.S. milk production was 2.2% above July 2025, totaling 20.1 billion pounds. Output per cow was 2,075 pounds, or 3 pounds above a year ago. Cow numbers were unchanged from June. The nation's dairy herd was 199,000 head more than a year ago at 9.71 million head. The growth in cow numbers has slowed, but milk production has not.

AVERAGE CLASS III PRICES:

3 Month:	$16.76
6 Month:	$17.10
9 Month:	$17.23
12 Month:	$17.34

CHEESE:

For the week, blocks declined 7.25 cents with 10 loads traded. The weekly average price is $1.5620. Barrels remained unchanged with no loads traded. The weekly average price is $1.5650. Dry whey increased 1.25 cents with two loads traded. The weekly average price is 69.75 cents. Blocks ran into headwinds this week with the price closing the week 0.75 cent above the low from August 5.

BUTTER:

For the week, butter increased 0.25 cent with 60 loads traded. The weekly average price is $1.4510. Grade A nonfat dry milk increased 5.50 cents with 41 loads traded. The weekly average price is $1.7925. Nonfat dry milk may have reached a level of price resistance. The July Cold Storage report will be released on Monday and will show if inventory has increased due to strong output.

OUTSIDE MARKETS SUMMARY:

December corn closed up 5.00 cents per bushel at $5.0850, November soybeans closed up 3.00 cents at $12.3950, and December soybean meal closed up $2.00 per ton at $325.80. December Chicago wheat closed down 0.75 cent at $6.9925. October live cattle closed down $0.08 at $217.93. October crude oil is up $0.23 per barrel at $87.06. The Dow Jones Industrial Average is up 518 points at 53,277, with the NASDAQ up 113 points at 26,180.

July Milk Production in the United States up 2.2 Percent

July Milk Production up 2.3 Percent        

Milk production in the 24 major States during July totaled 19.4 billion pounds, up 2.3 percent from July 2025. June revised production, at 19.1 billion pounds, was up 3.1 percent from June 2025. The June revision represented an increase of 124 million pounds or 0.7 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,093 pounds for July, 5 pounds above July 2025.   The number of milk cows on farms in the 24 major States was 9.27 million head, 185,000 head more than July 2025, and 2,000 head more than June 2026.   

July Milk Production in the United States up 2.2 Percent  

Milk production in the United States during July totaled 20.1 billion pounds, up 2.2 percent from July 2025.  Production per cow in the United States averaged 2,075 pounds for July, 3 pounds above July 2025.  The number of milk cows on farms in the United States was 9.71 million head, 199,000 head more than July 2025, but unchanged from June 2026. 

Friday Midday Dairy Market Summary - Nonfat Dry Milk Price Drops Back

OUTSIDE MARKETS SUMMARY:

CORN:	4 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$1.40 Higher
LIVE CATTLE:	$0.35 Lower
DOW JONES:	441 Points Higher
NASDAQ:	120 Points Higher
CRUDE OIL:	$0.40 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.50 cents to close at $1.5275 with no loads traded. There were 3 unfilled bids and 13 uncovered offers remaining at the close. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price remained unchanged at 70.25 cents with no loads traded. Class III futures are mixed, ranging from 24 cents lower to 9 cents higher. The butter price increased 3.25 cents to close at $1.4625 with four loads traded. There were 2 unfilled bids and 35 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk decreased 2.00 cents to close at $1.8000 with nine loads traded. Class IV futures are 9 cents lower to 2 cents higher. Butter futures are 1.25 cents lower to 3.25 cents higher. Dry whey futures are 0.45 cents higher. Cheese futures are 1.80 cents lower to 0.40 cents higher. Nonfat dry milk futures are 2.80 cents lower to 0.25 cent higher. The July Milk Production report will be released this afternoon.