Friday Midday Dairy Market Summary - Spot Prices Declined

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	16 Lower
SOYBEAN MEAL:	$5.20 Lower
LIVE CATTLE:	$3.27 Higher
DOW JONES:	641 Points Lower
NASDAQ:	414 Points Lower
CRUDE OIL:	$4.02 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 3.75 cents to close at $1.5825 with seven loads traded. The barrel cheese price declined 0.75, closing at $1.5650 with two loads traded. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are mixed, ranging from 29 cents lower to 15 cents higher. Traders maintain optimism as the block cheese price has declined the past three days, but that has had little impact on Class III futures. The butter price declined by 2.00 cents to close at $1.8250 with 17 loads traded. Grade A nonfat dry milk declined 1.50 cents to close at $1.9225 with 17 loads traded. Class IV futures are 28 cents lower to 21 cents higher. Butter futures are 1.20-4.25 cents lower. Dry whey futures are 0.45 cent lower to 1.05 cents higher. Cheese futures are 2.90 cents lower to 0.40 cent higher.

Friday Morning Dairy Market Update - Overnight Trade Shows Continued Optimism

OPENING CALLS:

Class III Milk Futures:	5 to 10 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	2 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	4 to 5 Higher

MILK:

Traders continue to support Class III futures in the expectation that underlying spot cheese prices will maintain the current level or move higher. Strong demand is keeping pace with increased milk production. This is limiting the increase in inventory. Milk output remaining significantly above a year ago is not viewed as bearish, as it was late last year. The better prices the futures are currently showing throughout the rest of the year will keep milk production strong, and dairy farms will continue to hold onto and add cows.

CHEESE:

The block cheese price showed weakness over the past two days and it is uncertain whether that weakness will continue Friday. Buyers may hold back if the sellers remain actively wanting to move product to limit inventory building at the plant level.

BUTTER:

The market seems to be balanced as buyer interest in the spot market is being met with sellers wanting to move supplies. Sellers are not holding back to see how aggressive buyers will be. Strong butter output needs to be moved and the fact that inventory remains below a year ago is testimony to strong demand.

Thursday Closing Dairy Market Update - January Fluid Milk Sales Decline 2.3%

GENERAL OVERVIEW:

Class III futures were mixed, with pressure on nearby contracts due to further weakness of block cheese. Class IV futures were mostly higher on the increase in butter and nonfat dry milk. January fluid milk sales declined 2.3% from January 2025.

MILK:

Most milk futures contracts showed further gains on Thursday. The confidence of those who have been bullish due to the cold storage report is being tested, as the block cheese price has declined since the report. If there is another day of weakness, liquidation could be triggered. Fluid milk sales in January were 2.3% lower than a year earlier. Whole milk sales increased 1.6%; flavored whole milk jumped 17.8%; reduced fat declined 5.2%; low-fat milk fell 10.3%; flavored fat-reduced milk declined 6.2%; buttermilk sales declined 2.5%; and other fluid milk products increased 2.2%. Organic whole milk sales declined 2.4%; organic flavored whole milk jumped 16.1%; organic reduced-fat milk declined 3.1%; organic low-fat milk sales fell 24.9%; organic fat-free milk declined 15.7%; organic flavored fat-reduced milk sales fell 28.3%; and other organic milk products fell 65.4% from January 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.22
6 Month:	$17.95
9 Month:	$18.22
12 Month:	$18.11

CHEESE:

The spot cheese prices have not responded as many had anticipated after the February Cold Storage report showed a decline in American cheese stocks from January, with inventory 3.0% below February 2025. The weakness of block cheese over the past two days has had little impact on Class III futures. Buyers have not been aggressive, resulting in sellers lowering their offers.

BUTTER:

The spot butter price has responded to another month of inventory remaining 17% below the previous year. Sellers have been offering loads to the spot market, but buyers have purchased those loads, resulting in minor gains. The spot price pushed higher early during spot trading as buyers wanted to take advantage of the lower price. However, gains were trimmed due to sellers willing to take advantage of the aggressive buying and offering loads aggressively. So far this week, there have been 103 loads of butter traded.

OUTSIDE MARKETS SUMMARY:

May corn closed down 0.25 cent per bushel at $4.6700, May soybeans closed up 2 cents at $11.7375, and May soybean meal closed up $2.30 per ton at $322.10. May Chicago wheat closed up 7.25 cents at $6.0500. June live cattle closed up $0.95 at $234.80. May crude oil is up $3.34 per barrel at $93.66. The Dow Jones Industrial Average is down 469 points at 45,960, with the NASDAQ down 522 points at 21,408.