Wednesday Closing Dairy Market Update - April Class III Milk Price is $16.82

GENERAL OVERVIEW:

Milk futures took a beating, posting substantial losses. Nearby Class III futures fell back to the lowest levels they have been since April 9, significantly impacting the bullish attitude that had developed. The April Federal Order class prices increased from March.

MILK:

Milk futures took a beating, posting large declines. The June Class III contract moved within a penny of the limit down at one point during the afternoon. Trading volume was moderate, with the May and June contracts showing the greatest activity. Futures gave up quite a bit of hard-earned gains. Class IV futures posted similar losses throughout the rest of the year. The block cheese price neared buyer resistance of the previous high price and retreated as buyers stepped back. The spot butter prices followed the pattern of falling back after an increase of a few days. The April Federal Order prices were released today with a Class II price of $18.82. This is an increase of $1.48 from March, but a decrease of $0.40 from April 2025. The Class III price is $16.82. This is an increase of $0.66 from March, but a decrease of $0.66 from a year ago. The Class IV price is $20.22. This is an increase of $1.28 from March and an increase of $2.30 from April 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.59
6 Month:	$18.24
9 Month:	$18.21
12 Month:	$18.09

CHEESE:

The block cheese price did not decline very much, but the disappointment of traders was very evident, resulting in substantial pressure on the market. There is concern that the weakness today may result in buyers being less aggressive on Thursday, with some moving to the sidelines in the near term. Spot milk prices have strengthened with reports of $3.00 under class to class. Increased manufacturing capacity has resulted in lower spot milk availability. However, milk supplies remain sufficient for demand.

BUTTER:

Butter production is strong due to plentiful milk and cream supplies. Manufacturers continue to offer supplies on the spot market at whatever prices they can receive. There is no desire or need to hold onto supplies to build inventory for later demand. Butter production is expected to remain strong throughout the rest of the year.

OUTSIDE MARKETS SUMMARY:

July corn closed up 2.25 cents per bushel at $4.7775, July soybeans closed up 7.75 cents at $11.9700, and July soybean meal closed down $3.60 per ton at $323.80. July Chicago wheat closed down 4.75 cents at $6.5300. June live cattle closed up $1.75 at $255.25. June crude oil is up $8.05 per barrel at $107.98. The Dow Jones Industrial Average is down 280 points at 48,862, with the NASDAQ up 9 points at 24,673.

Wednesday Midday Dairy Market Summary - Cash Prices Drop

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	8 Higher
SOYBEAN MEAL:	$7.10 Lower
LIVE CATTLE:	$4.20 Higher
DOW JONES:	312 Points Lower
NASDAQ:	47 Points Lower
CRUDE OIL:	$6.61 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 2.25 cents, closing at $1.63 with three loads traded. The barrel cheese price remained unchanged at $1.6150 with no loads traded. The dry whey price remained unchanged at 70.75 with no loads traded. Class III futures are steady to 56 cents lower. The butter price declined 4.50 cents, closing at $1.65 with 23 cents traded. Grade A nonfat dry milk declined 0.75 cent to close at $2.2575 with four loads traded. This is the first price decline in 17 consecutive trading days. Class IV futures are 48 cents lower, with trading taking place in only the June and August contracts. Butter futures are 1.77-6.20 cents lower. Dry whey futures are steady to 1.60 cents lower. Cheese futures are .20-3.60 cents lower. The April Federal Order class prices will be announced today.

Wednesday Morning Dairy Market Update - Traders Search For Price Direction

OPENING CALLS:

Class III Milk Futures:	2 to 4 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	3 to 4 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	3 to 4 Higher

MILK:

Milk futures closed lower Tuesday despite steady- to higher-cash prices. The minor gains were a disappointment to traders, resulting in selling pressure. Later-year futures contracts have maintained the uptrend despite the weakness on Tuesday. Milk production is increasing, but the market has absorbed it, keeping the outlook for milk prices better than had been anticipated earlier in the year. The April Federal Order class prices will be released Wednesday afternoon. The April Class III contract closed at $16.85 and the Class IV contract closed at $20.20. Futures and options will be settled according to the announced prices.

CHEESE:

Cheese prices remained unchanged Tuesday. This was disappointing to traders, resulting in increased selling pressure. The block cheese price is near the recent highs and may find price resistance near that level. Cheese supplies are sufficient for demand, limiting the need for buyers to be aggressive.

BUTTER:

Traders will remain cautious in the butter market. Price increases have been short-lived, keeping the market in a downtrend. This will change at some point, but so far there is no indication of price support. Even with the lower price, buyers have not had to be aggressive, as sellers have been willing to offer supplies to the spot market at lower prices to keep inventory from building at the plant level.