Monday Midday Dairy Market Summary - Block Cheese Price Falls

OUTSIDE MARKETS SUMMARY:

CORN:	13 Lower
SOYBEANS:	17 Lower
SOYBEAN MEAL:	$0.19 Lower
LIVE CATTLE:	$0.83 Lower
DOW JONES:	61 Points Lower
NASDAQ:	79 Points Lower
CRUDE OIL:	$0.06 Lower

MIDDAY MARKET UPDATE:

The block cheese price fell 5.50 cents, closing at $1.72 with 10 loads traded. The barrel cheese price increased 0.250 cents, closing at $1.7825 with four loads traded. The dry whey price remained steady, closing at 51.00 cents with no loads traded. The price is down to the lowest level since July 18, 2024. Buyers are not interested in aggressively purchasing despite the low prices. Class III futures are 1 to 12 cents lower. The February contract will go off the board Tuesday. The butter price held steady at $2.3450 with 10 loads traded. Grade A nonfat dry milk remained declined 0.75 cents, closing at $1.1925 with four loads traded. Class IV futures have not yet traded Monday. Butter futures are 0.77 cent lower to 3.02 cents higher. Dry whey futures are 1.5 cents lower to unchanged.

Monday Morning Dairy Market Update - Selling Pressure May Continue

OPENING CALLS:

Class III Milk Futures:	Steady to 4 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk futures will remain bearish unless solid support surfaces in underlying cash. That may be a lot to ask in the current market environment. The bearishness that surfaced as President Trump announced tariffs on Canada and Mexico with added tariffs on China, remains in place. The calendar is moving closer to the time of year known as spring flush and will put more milk on the market. The increase will be difficult to anticipate as milk production per cow has been lagging a year ago. Nevertheless, there will be an increase in milk output. Demand needs to improve or prices will remain low with limited upside potential. Futures are expected to be under further pressure unless traders see strength in cash.

CHEESE:

The large decline of block cheese on Friday was a surprise, the bearishness of the decline will be difficult to overcome. Buyers may step in to purchase at the lower price, but they may not be aggressive. Sellers have cheese to sell and continue to offer it to the market. Manufacturers want to keep the supply from building at the plant level.

BUTTER:

Butter manufacturers continue to work through abundant cream supplies. This has resulted in low multiple cream supplies as excess needs to clear the market. Most plants are operating on full schedules and have sufficient cream from current supplies or patrons. The abundance allows buyers to purchase without having to chase the market. They have been buying on the continued weakness.