Friday Closing Dairy Market Update - March Income Over Feed Was $9.57

GENERAL OVERVIEW:

It has not been a good week for milk futures. The May and June Class III contracts fell by over $1.00 per cwt since Monday. The cheese price only declined by 0.50 cent. The March income over feed price was $9.57.

MILK:

Milk futures took a beating this week, with the May and June Class III contracts falling over $1.00 per cwt. This certainly was a surprise when making the correlation to the underlying spot prices. The block cheese price only decreased by 0.50 cent for the week. The barrel cheese price remained unchanged. The decline in the butter price influenced Class III futures, but not to the extent shown by the milk futures. Traders maintained a bearish posture throughout the week as the outlook for higher milk prices dimmed. Milk production continues to increase seasonally as the spring flush continues. The average soybean meal price for March was $326.15 per ton. This was an increase of $13.77 per ton from February and $22.35 per ton from March 2025. This results in an income over feed price for March of $9.57.

AVERAGE CLASS III PRICES:

3 Month:	$17.47
6 Month:	$18.08
9 Month:	$18.11
12 Month:	$18.01

CHEESE:

For the week, blocks declined 0.50 cent with 11 loads traded. The weekly average price is $1.6430. Barels remained unchanged at $1.5150 with no loads traded. The weekly average price is $1.6150. Dry whey remained unchanged at 69.75 cents with three loads traded. The weekly average price is 70.25 cents. Cheese prices may remain in a range for a time as the milk supply remains sufficient for demand. Cheese production has increased due to higher milk receipts at the plant.

BUTTER:

For the week, butter fell 11.00 cents with 92 loads traded. The weekly average price is $1.6505. Grade A nonfat dry milk increased 0.25 cent with 19 loads traded. The weekly average price is $2.2590. Butter continues to trend lower as manufacturers are moving product as quickly as possible to keep inventory from building at the plant level.

OUTSIDE MARKETS SUMMARY:

July corn closed up 5.50 cents per bushel at $4.8025, July soybeans closed up 7.75 cents at $12.0325, and July soybean meal closed up $.40 per ton at $319.30. July Chicago wheat closed up 1.00 cent at $6.3775. June live cattle closed down $1.00 at $253.00. June crude oil is down $3.13 per barrel at $101.94. The Dow Jones Industrial Average is down 153 points at 49,499, with the NASDAQ up 222 points at 25,114.

Friday Midday Dairy Market Summary - Milk Futures Remain Under Pressure

OUTSIDE MARKETS SUMMARY:

CORN:	5 Higher
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$0.70 Lower
LIVE CATTLE:	$0.60 Lower
DOW JONES:	20 Points Higher
NASDAQ:	291 Points Higher
CRUDE OIL:	$3.28 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.64 and $1.6150, respectively. There were four loads traded for blocks with no loads traded in barrels. The dry whey price remained unchanged at 69.75 with no loads traded. Class III futures are 7-16 cents lower. The butter price declined 3.00 cents $1.5950 with 21 loads traded. Grade A nonfat dry milk gained 1.25 cents to close at $2.2625 with 12 loads traded. This moved the price within 0.25 cent of the high. Class IV futures are 10-36 cents lower as traders focus on the weakness of butter. Butter futures are 1.00 cents lower to 0.30 cent higher. Dry whey futures are steady to 0.70 cent lower. Cheese futures are 1.30 cents lower to 0.30 cent higher. The income over feed price for March was $9.57 after the calculation was made when the soybean meal price was released.

Friday Morning Dairy Market Update - Light Trading Activity

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	5 to 7 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	Mixed

MILK:

Trading was not active overnight as there was little to influence price direction. Futures have declined substantially this week, with the potential for some short-covering to take place ahead of the weekend. There is no concern over an unexpected change in fundamentals that would cause traders to liquidate their short positions, but the substantial declines this week have resulted in the market being overdone to the downside. The average soybean meal price for March will be released Friday morning, providing the last price needed to calculate income over feed for the Dairy Margin Coverage program.

CHEESE:

Cheese is expected to remain choppy, with the price remaining in a range. Cheese production is strong, supplying sufficient cheese to the market. Demand is steady, which has kept inventory below that of a year ago. This keeps the upside price potential limited and provides support below the market.

BUTTER:

The butter price remains in a downtrend. It is uncertain as to where support may be found. As long as manufacturers continue to move supplies to the spot market aggressively, buyers will hold back and purchase at lower prices. End users see no reason to be concerned about supplies.