Friday Closing Dairy Market Update - April Corn and Hay Prices Increased While Milk Decreased

MILK:

It has been a volatile, holiday-shortened week with Class III milk futures closing lower than a week ago. Class IV futures closed higher. Market fundamentals have not changed, but buyers in the spot market turned aggressive, pushing prices higher. Class III futures are higher than Class IV through July and are near the same price for August. The butter price has been strong over the past week but has not been able to distance itself from the cheese prices. The April Agricultural Prices report was released today. The average corn price was $4.62 per bushel, up $0.05 from March and $0.23 higher than April 2024. The premium/supreme hay price was $252.00 per ton, up $10.00 per ton from March but $8.00 per ton below a year ago. The All-milk price was $21.00 per cwt, down $1.00 from March, but up $0.60 from April 2024. The average soybean meal price will be released on Monday by the FSA. That is when we can calculate the income over feed price for the Dairy Margin Coverage program.

AVERAGE CLASS III PRICES:

3 Month:	$19.14
6 Month:	$19.27
9 Month:	$19.11
12 Month:	$18.91

CHEESE:

For the week, blocks gained 7.75 cents with 26 loads traded. The weekly average price was $1.9413. Barrels gained 1.75 cents with 13 loads traded. The weekly average price was $1.8675. Dry whey gained 3 cents with nine loads traded. The weekly average price was 56.81 cents. The trading activity in cheese took place over three days, with no trading activity and no interest shown in spot trading today.

BUTTER:

For the week, butter gained 5.50 cents with 39 loads traded. The weekly average price was $2.4938. Grade A nonfat dry milk gained 3.50 cents with 14 loads traded. The weekly average price was $1.2819. Churning remains active with a sufficient cream supply despite ice cream production increasing ahead of the summer and using a significant amount of cream.

OUTSIDE MARKETS SUMMARY:

July corn closed down 3.00 cents per bushel at $4.4400, July soybeans closed down 10.00 cents at $10.4175 and July soybean meal closed down $.10 per ton at $296.30. July Chicago wheat closed steady at $5.3400 and August live cattle closed down $0.73 at $209.35. July crude oil is down $0.15 per barrel at $60.79. The Dow Jones Industrial Average is up 54 points at 42,270, with the NASDAQ down 62 points at 19,114.

Friday Midday Dairy Market Summary - Spot Trading Provides Little Price Direction

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	10 Lower
SOYBEAN MEAL:	$0.60 Higher
LIVE CATTLE:	$0.55 Higher
DOW JONES:	134 Points Lower
NASDAQ:	244 Points Lower
CRUDE OIL:	$0.31 Lower

MIDDAY MARKET UPDATE:

Both the block and barrel cheese prices remained steady at $1.9475 and $1.87, respectively. There were no loads traded. No buyers or sellers showed up to do business. The dry whey price slipped 0.25 cent, closing at 57.25 cents with one load traded. This did not provide much direction for traders with Class III futures ranging from 9 cents lower to 6 cents higher. The butter price increased 2 cents, closing at $2.4750 with 16 loads traded. There were three unfilled bids and four uncovered offers remaining at the close. Grade A nonfat dry milk increased 0.25 cent, closing at $1.2875 with seven loads traded. Class IV futures are 3-16 cents higher. Butter futures are 0.25 cent lower to 6.90 cents higher. Dry whey futures are steady to 0.25 cent higher. The USDA will release the April Agricultural Prices report this afternoon, providing most of the prices used in the calculation of the income over feed price for the Dairy Margin Coverage program.

Friday Morning Dairy Market Update - Traders Wait For Cash Direction

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 2 Higher
Soybean Futures:	1 to 3 Lower
Soybean Meal Futures:	$0.50 to $1.00 Higher
Wheat Futures:	1 to 2 Higher

MILK:

Milk futures fell back over the past two days as spot cheese prices may have reached a threshold, and butter fell back following strong gains. There is no shortage of milk in the country. More milk is moving to manufacturing, increasing the production of dairy products. This should leave a sufficient supply for demand unless demand improves more than expected. Spot milk prices remain at a discount to class, indicating the milk supply is holding after the spring flush season is past. Futures prices may trade mixed ahead of spot trading as traders are uncertain about the cash prices. The USDA will release the April Agricultural Prices report, showing the average prices used in calculating the income over feed price.

CHEESE:

Spot cheese prices may have reached a threshold at which buyers and sellers will be comfortable doing business. Cheese production remains strong as more milk moves to the vat. Retail cheese demand is improving and hopefully will keep up with the increased production.

BUTTER:

The sharp butter price decline on Thursday may keep buyers on the sidelines today. They may wait to see if the sellers will be aggressive again today. However, further weakness could increase the buying interest and support the market. Demand for butter is reportedly improving.

Thursday Closing Dairy Market Update - Milk Futures Suffer Significant Losses

MILK:

Class III milk futures fell as liquidation continued, with Class IV futures falling due to the drop in the spot butter price. The weather has been good in much of the nation, which has kept milk production strong. The spring flush period is finished in general, with milk production holding. Milk output is higher due to increased cow numbers and output per cow. The trend has been for more cows to be held rather than to cull heavily due to high replacement prices and tight numbers. More milk is moving to manufacturing as schools close for the summer. This is not expected to increase the supply of manufactured products to any great degree as demand improves seasonally during the second half of the year. The USDA will release the April Agricultural Prices report on Friday.

AVERAGE CLASS III PRICES:

3 Month:	$19.11
6 Month:	$19.25
9 Month:	$19.09
12 Month:	$18.87

CHEESE:

Cheese prices held well, with the dry whey price higher, but traders were intent on selling futures. There was concern that the potential for further upside price potential has diminished. Traders focused on the weakness of blocks. There are some reports that the cheese inventory in some areas has tightened. Inventory has increased each month this year, but stocks have not exceeded the previous year. If demand improves, this may result in tighter supplies during the second half of the year.

BUTTER:

Butter production remains strong as there is a sufficient cream supply for demand. Retail demand is improving, which has limited inventory growth in April. The result was that stocks in April were 7% below a year ago. Ice cream production is increasing, requiring more cream for manufacturing. This will reduce the amount available for churning.

OUTSIDE MARKETS SUMMARY:

July corn closed down 4.00 cents per bushel at $4.4700, July soybeans closed up 3.25 cents at $10.5175 and July soybean meal closed up $2.70 per ton at $296.40. July Chicago wheat closed up 3.75 cents at $5.3400. August live cattle closed up $1.90 at $210.08. July crude oil is down $0.90 per barrel at $60.94. The Dow Jones Industrial Average is up 117 points at 42,216, with the NASDAQ up 75 points at 19,176.

Thursday Midday Dairy Market Summary - Butter Falls Back

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	1 Lower
SOYBEAN MEAL:	$2.70 Higher
LIVE CATTLE:	$1.45 Higher
DOW JONES:	33 Points Higher
NASDAQ:	72 Points Higher
CRUDE OIL:	$0.90 Lower

MIDDAY MARKET UPDATE:

The block cheese slipped 0.25 cent, closing at $1.9475 with five loads traded. The price initially declined a penny until buyers took advantage of the price dip to buy what was offered to the market. The barrel cheese price increased 0.50 cent, closing at $1.87 with six loads traded. The dry whey price increased 0.50 cent, closing at 57.50 cents with one load traded. Even though blocks came back from the low, dry whey and barrels increased. Class III futures are under significant pressure, ranging from unchanged to 41 cents lower, with July showing the greatest loss. The butter price took it on the chin, falling 7 cents, closing at $2.4550 with four loads traded. Grade A nonfat dry milk remained unchanged at $1.2850 with four loads traded. Class IV futures have not yet been traded. Butter futures are 4.52 to 7.50 cents lower. Dry whey futures are steady to 1.95 cents higher.

Fluid Milk and Cream - Western U.S. Report 18

For California, milk production is lightening. Stakeholders convey spot milk load availability is not abundant. Central Valley stakeholders convey milk output is not pushing plants past capacities. That said, some manufacturers note milk intakes have been above anticipated volumes this month as we come to the finish line for May 2025. Demands for all Classes are unchanged. According to the California Department of Water Resources, as of May 27, 2025, the state received 21.69 inches of precipitation for the current 2024-25 Water Year, which is 0.62 inches below the historical mean. Concerning reservoir storage levels, the estimated statewide reservoir storage is at 32.80 million acre feet and 114 percent of the historical average as of May 28, 2025, according to the California Department of Water Resources. 

Farm level milk output in Arizona is lighter. Demands for all Classes are steady. 

Milk production in New Mexico is lighter. Class I demand is lighter with spring recesses at educational institutions beginning to take place. Class II, III, and IV demands are steady. 

Despite some lighter milk production for parts of the Pacific Northwest, some manufacturers convey milk intakes are above anticipated volumes. Stakeholders note milder than expected weather has contributed to this, but warmer weather is starting. All Class manufacturing demands are steady. 

Farm level milk output in the mountain states of Idaho, Utah, and Colorado varies from steady to lighter. Stakeholders indicate milk volumes are meeting the needs of manufacturers. All Class demands are steady. 

Cream volumes continue to be more than sufficient in the region. Demand is somewhat stronger. Cream multiples moved slightly higher for the bottom of both ranges. Condensed skim milk availability is mixed. Condensed skim milk demand is steady.

Thursday Morning Dairy Market Update - Spot Prices May See Further Strength

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 10 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures were lower on Wednesday despite the strength of underlying cash. Traders became cautious as the block cheese price did not hold the higher price reached during spot trading. The spot price closed higher, but the concern was whether a threshold may have been reached. The milk supply is sufficient for demand, with more milk moving to manufacturing. Milk output continues to exceed a year ago, with the improved outlook for milk prices likely to maintain that trend. The Federal Order reforms will be implemented next week, but that is not expected to impact the market as the changes in price will impact the utilization of each Federal Order and will not impact supply and demand.

CHEESE:

Cheese has found solid support as buyers are increasing ownership to hedge against the potential for higher prices if demand improves. Cheese production is strong with more milk moving to the vat. The supply is sufficient for demand and could limit the upside price potential.

BUTTER:

The butter price may continue to increase seasonally as buyers have turned more aggressive. Butter has been put into storage for later use, but the overall inventory is lower than a year ago. If the current trend of strong production and less inventory than a year ago continues, the price could move substantially higher.

Wednesday Closing Dairy Market Update - Uncertainty Dominated the Market

MILK:

Most of the country reports the spring flush is at or past its peak. That does not mean that milk production will fall back, but that production may stabilize. Hot summer weather will impact milk output as usual. However, it does not have the impact it once had due to the great strides made in cooling cows. Butterfat is showing signs of decreasing, which may tighten the butterfat supply as ice cream production ramps up. Higher volumes of milk are moving to manufacturing, but that is not expected to overwhelm plants. Class III futures diverged with contracts through October, closing lower, while later contracts were slightly higher. Class IV traders were uncertain of market strength, opting to mostly remain out of the market, with mixed futures ending the day.

AVERAGE CLASS III PRICES:

3 Month:	$19.29
6 Month:	$19.43
9 Month:	$19.22
12 Month:	$18.97

CHEESE:

Retail demand for cheese is improving, which may be one reason for the recent increase in spot cheese prices. Growth in demand may be limited due to the high prices of many food items, resulting in increased food bills. Consumers will balance purchases, limiting the purchase of some items. Cheese supplies are sufficient for demand. Supply is not tight, nor is it expected to tighten significantly anytime soon. Stocks are lower than a year ago but have been increasing so far this year, but not enough to exceed the levels of last year.

BUTTER:

Most manufacturers continue to run at full capacity as the cream supply remains abundant. However, ice cream production is pulling more cream from the market. Summer weather is expected to reduce butterfat and reduce the abundant supply of cream. This may reduce the heavy supply but may not tighten the supply substantially. There have been 19 loads of butter traded on the CME spot market over the past two days.

OUTSIDE MARKETS SUMMARY:

July corn closed down 8.50 cents per bushel at $4.5100, July soybeans closed down 14.00 cents at $10.4850 and July soybean meal closed down $2.60 per ton at $293.70. July Chicago wheat closed up 1.75 cents at $5.3025. August live cattle closed down $1.13 at $208.18. July crude oil is up $0.99 per barrel at $61.88. The Dow Jones Industrial Average is down 245 points at 42,099, with the NASDAQ down 98 points at 19,101.

Wednesday Midday Dairy Market Summary - Spot Prices Show Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	8 Lower
SOYBEANS:	13 Lower
SOYBEAN MEAL:	$2.30 Lower
LIVE CATTLE:	$0.85 Lower
DOW JONES:	119 Points Lower
NASDAQ:	6 Points Lower
CRUDE OIL:	$1.11 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3 cents, closing at $1.95 with 16 loads traded. The price moved to $1.9650 during trading but did not hold that level. There were two unfilled bids and two uncovered offers remaining. The barrel cheese price remained unchanged at $1.8650 with one load traded. One unfilled bid and three uncovered offers remaining at the close. The dry whey price increased 1.50 cents, closing at 57.00 cents with two loads traded. This is the highest dry whey price since Feb. 11. Class III futures are mixed, ranging from 24 cents lower to 11 cents higher. Contracts are lower through October and higher thereafter. The butter price increased 0.50 cent, closing at $2.5250 with 13 loads traded. There were three unfilled bids and two uncovered offers remaining at the close. Grade A nonfat dry milk increased 1.50 cents, closing at $1.2850 with two loads traded. Class IV futures are 17 to 32 cents higher. Butter futures are steady to 5.72 cents higher. Dry whey futures are steady to 0.35 cent lower.

Wednesday Morning Dairy Market Update - Higher Prices Expected

OPENING CALLS:

Class III Milk Futures:	3 to 6 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	2 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	2 to 3 Lower
Soybean Meal Futures:	Steady to $1 Lower
Wheat Futures:	3 to 5 Higher

MILK:

Buying interest was strong on Tuesday as all spot price categories posted nice gains. The recent reports have been digested with traders looking ahead to the potential for demand through the rest of the year. Buyers of dairy products seem to be more interested in increasing ownership to hedge against potentially higher prices later in the year, even though supplies are currently sufficient. Demand seasonally increases during the second half of the year, but the extent of that demand is uncertain. All schools will be closed over the next week, with manufacturing receiving higher milk volumes.

CHEESE:

There is a strong possibility that buyers may remain aggressive Wednesday. The increase may bring more buyers into the market to purchase before prices increase further. The realization that downside potential is limited may cause buyers to leapfrog to buy what sellers offer.

BUTTER:

The butter price has increased with a vengeance, gaining 17.75 cents over the past three trading days. This increased buyer excitement, and any price weakness will be viewed as a buying opportunity. Further strength is expected Wednesday.

Tuesday Closing Dairy Market Update - Milk Futures Post Strong Gains

MILK:

The July and August Class III futures contracts moved to new highs with July closing above $20.00 at $20.16. Class IV futures are a long way from new highs, but futures increased substantially. The bullish cold storage report has offset the bearishness of the milk production report. Seasonal buying has kicked in, with buyers stepping up more aggressively to purchase before prices increase further. This improves the outlook for milk prices immensely and will keep milk production strong unless something unforeseen happens. The income over feed price should improve significantly if the trend continues. The corn crop condition is rated at 68% good/excellent, with 87% planted. This is a strong start to the growing season and may keep corn prices low.

AVERAGE CLASS III PRICES:

3 Month:	$19.46
6 Month:	$19.53
9 Month:	$19.26
12 Month:	$19.00

CHEESE:

Buyers became aggressive after the extended weekend with the intent of increasing their ownership of supplies. Cheese inventory is not catching up with year-earlier supplies, indicating demand is holding well and is providing a positive outlook for prices.

Dry whey has moved to the highest level since February 18, providing substantial support to the Class III complex. The strength may bring more buyers into the market as they will want to purchase before prices increase. However, this will push prices higher as buyers may leapfrog over each other to purchase what is offered.

BUTTER:

Butter may make up for lost time as the price may have remained lower longer than it should have. Buyers have not been aggressive for three months, anticipating that the butter supply would remain large due to strong output from abundant cream supplies. The butter output has been strong, but it has been unable to keep the supply above the level of a year ago, according to the cold storage report.

OUTSIDE MARKETS SUMMARY:

July corn closed steady at $4.5950, July soybeans closed up 2.25 cents at $10.6250 and July soybean meal closed up $.10 per ton at $296.30. July Chicago wheat closed down 14.00 cents at $5.2850. August live cattle closed down $1.15 at $209.30. July crude oil is down $0.64 per barrel at $60.89. The Dow Jones Industrial Average is up 741 points at 42,344, with the NASDAQ up 462 points at 19,199.

Tuesday Midday Dairy Market Summary - Spot Prices Push Higher

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.30 Higher
LIVE CATTLE:	$0.90 Lower
DOW JONES:	664 Points Higher
NASDAQ:	452 Points Higher
CRUDE OIL:	$0.92 Lower

MIDDAY MARKET UPDATE:

Spot dairy prices were strong after the holiday weekend as buyers wanted to purchase supplies. The block cheese price increased 5 cents, closing at $1.92 with five loads traded. The barrel cheese price increased 1.25 cents, closing at $1.8650 with six loads traded. There were three unfilled bids for loads of blocks remaining at the close of spot trading, with no uncovered offers. There were two unfilled bids for barrels with three uncovered offers. The dry whey price increased 1.25 cents, closing at 55.50 cents with five loads traded. Class III futures are 3 to 51 cents higher with July above $20.00. The butter price jumped 10 cents, closing at $2.52 with seven loads traded. There were seven unfilled bids and five uncovered offers remaining at the close. The price has increased 17.75 cents over the past three trading days. Grade A nonfat dry milk increased 1.75 cents, closing at $1.27 with one load traded. Class IV futures are 24 to 65 cents higher. Butter futures are 0.25 to 7.50 cents higher with most contracts locked limit up. Dry whey futures are steady to 0.60 cent higher.

Tuesday Morning Dairy Market Update - Butter Could Show Further Strength

OPENING CALLS:

Class III Milk Futures:	4 to 8 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 5 Lower
Soybean Futures:	1 to 3 Higher
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	8 to 10 Lower

MILK:

There could be some short-covering in Class III milk futures ahead of spot trading. The decline on Friday due to cash weakness may be viewed with skepticism. Buyers may step in to take advantage of the decline to increase ownership of more cheese for later demand. However, the upside may be limited as milk production is stronger than a year ago and may continue that way. The spring flush has come to an end in much of the country. However, milk supplies are expected to be plentiful as schools close for the summer and more milk moves to manufacturing.

CHEESE:

Cheese prices could see further weakness as buyers may step back to see how aggressive sellers will be. However, Friday's weakness or further weakness may increase the buying interest of end users. The Cold Storage report was not bearish to the market as cheese inventory remains below a year ago.

BUTTER:

The butter price may see further support now that the price has broken out of the sideways trading range. This could increase further buying interest as the seasonal increase may begin. There is an indication that demand is improving. The Cold Storage report showed butter stocks 7% below a year ago, which is somewhat bullish.

Friday Closing Dairy Market Update - Inventory Increases Less Than Usual

MILK:

Class III futures were higher for the week, but the gains were trimmed today as cheese prices fell. Traders were pulled into the market as cheese prices increased and were caught on the wrong side at the end of the week. Class IV futures showed greater gains, with most of those taking place today in response to the increase in butter and nonfat dry milk prices. The decline in cheese prices may not indicate that a top is in, but increased milk production and schools closing will move more milk to manufacturing, possibly limiting the upside potential for the time being. The markets will be closed on Monday and will open at the regular time on Monday evening.

AVERAGE CLASS III PRICES:

3 Month:	$19.23
6 Month:	$19.29
9 Month:	$19.08
12 Month:	$18.83

CHEESE:

For the week, the block cheese price declined 6 cents with 32 loads traded. The weekly average price was $1.91. The barrel cheese price declined 2.75 cents with 13 loads traded. The weekly average price was $1.8550. Dry whey slipped 0.75 cent with seven loads traded. The weekly average price was 53.70 cents. The April Cold Storage report showed an increase in American cheese stocks of 10.3 million pounds, totaling 805.9 million pounds from March and 2% below a year ago. Swiss cheese decreased by 690,000 pounds, totaling 23.1 million pounds, and is 5% above a year ago. Other cheese stocks totaled 579.1 million pounds, up 753,000 pounds, but 3% below last year. Total cheese inventory reached 1.408 billion pounds, up 10.4 million pounds from March and 2% below April 2024.

BUTTER:

For the week, butter increased 1.25 cents with 16 loads traded. The weekly average price was $2.3420. Grade A nonfat dry milk increased 1.75 cents with 35 loads traded. The weekly average price was $1.2170. Butter inventory in April increased by 14.1 million pounds, totaling 337.4 million pounds. This is 7% below a year ago. This puts butter in a bullish posture as inventory falling below a year ago tightens supply more than anticipated. The price may slowly trend higher as increased demand may reduce inventory significantly.

OUTSIDE MARKETS SUMMARY:

July corn closed down 3.50 cents per bushel at $4.5950, July soybeans closed down 7.25 cents at $10.6025 and July soybean meal closed down $2.30 per ton at $296.20. July Chicago wheat closed down 2.00 cents at $5.4250. August live cattle closed down $0.05 at $210.45. July crude oil is up $0.33 per barrel at $61.53. The Dow Jones Industrial Average is down 256 points at 41,603, with the NASDAQ down 189 points at 18,737.

Friday Midday Dairy Market Summary - Block Cheese Falls, Butter Price Breaks Out

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$2.50 Lower
LIVE CATTLE:	$0.32 Higher
DOW JONES:	176 Points Lower
NASDAQ:	135 Points Lower
CRUDE OIL:	$0.39 Higher

MIDDAY MARKET UPDATE:

The block cheese price fell 7.75 cents, closing at $1.87 with three loads traded and an unfilled offer remaining at the close. The decline eliminated the gains since May 14. The barrel cheese price declined 1.75 cents, closing at $1.8525 with two loads traded. There was an unfilled bid and three uncovered offers remaining. The dry whey price remained unchanged at 54.25 cents with no loads traded. Class III futures posted double-digit gains until spot prices traded lower, quickly moving the gains to losses. Futures are 49 cents lower to 6 cents higher. June is taking the brunt of the selling. The butter price jumped 5.75 cents, closing at $2.42 with 15 loads traded. There were 17 unfilled bids and four uncovered offers remaining at the close. This moves the price out of the trading range it has been in since late February to the highest price since Feb. 20. Grade A nonfat dry milk gained 2.25 cents, closing at $1.2525 with seven loads traded. This moves the nonfat price to the highest level since Feb. 20. Class IV futures are 30 to 38 cents higher. Butter futures are 0.22 cent lower to 5.30 cents higher. Dry whey futures are 0.60 cent lower to 1.92 cents higher. USDA will release the April Cold Storage report this afternoon.

Friday Morning Dairy Market Update - Cold Storage Report Today

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 2 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	2 to 3 Lower

MILK:

The strength in Class III futures moved June, July and August to new highs. The July contract moved briefly above $20.00 on Thursday but did not hold at that level. The improved outlook for milk prices will continue to see lower dairy cattle slaughter and increased cow numbers. That does not mean that milk production will overwhelm the market, but it may indicate that the milk supply will be sufficient for demand. Schools are closing for the summer, resulting in more milk being available for manufacturing. The higher availability keeps spot milk prices as much as $7.00 below class in some areas. The markets will be closed on Monday in observance of Memorial Day.

CHEESE:

Cheese buyers have remained aggressive, purchasing what is offered during spot trading and bidding higher for more. The strength has been surprising. Retail demand has been improving, which should absorb the increase in milk production. The April Cold Storage report will be released Friday and will show whether supplies increased or if demand has been able to keep inventory lower than a year ago.

BUTTER:

The butter price is poised to break out of the sideways trading range it has maintained for much of the year. Retail demand is improving and should increase buyer interest in the spot market. Inventory is expected to have increased in April, but stocks may not be much higher than a year ago. 

Thursday Closing Dairy Market Update - Dairy Cattle Slaughter Declines

MILK:

The June, July, and August Class III contracts established new highs again today. Buyers remain interested in purchasing available supplies to increase ownership for later demand. There is no shortage of milk as milk production remains higher than a year ago and seems to be gaining momentum. April milk output showed the highest year-over-year increase in 2025. Cow numbers continue to increase, with production per cow better than expected. There has been much discussion over how cow numbers can continue to increase with the tight heifer supply. One reason is the decrease in dairy cattle slaughter. Dairy cattle slaughter in April totaled 207,200 head, according to the April Livestock Slaughter report. This was a decline of 10,700 head from March and was 31,000 head less than April 2024. There have now been 20 consecutive months with lower dairy cattle slaughter than the previous year. Dairy cattle slaughter in April was the lowest since June 2014. The higher futures prices and the improved outlook for milk prices will continue this trend.

AVERAGE CLASS III PRICES:

3 Month:	$19.51
6 Month:	$19.52
9 Month:	$19.23
12 Month:	$18.95

CHEESE:

Cheese plants are running on mostly full schedules as milk production is slowing but still increasing as the spring flush continues in many areas. Plants are seeing more milk moving to them as schools are closing for the summer. This movement of milk keeps spot milk prices running as much as $7.00 below class. Retail cheese sales in the Central region are steady to stronger. Cheese buyers are active even though milk production is higher than a year ago, and cheese supplies are sufficient for demand.

BUTTER:

The butter price is near the high seen on March 27. The market may be poised to break out of the trading range as retail demand improves. The USDA will release the April Cold Storage report on Friday. It will be interesting to see whether inventory has narrowed the gap between current supplies and the inventory of a year ago.

OUTSIDE MARKETS SUMMARY:

July corn closed up 2.00 cents per bushel at $4.6300, July soybeans closed up 4.75 cents at $10.6750 and July soybean meal closed up $4.40 per ton at $298.50. July Chicago wheat closed down 4.75 cents at $5.4450. August live cattle closed up $1.85 at $210.50. July crude oil is down $0.77 per barrel at $60.80. The Dow Jones Industrial Average is down one point at 41,859, with the NASDAQ up 53 points at 18,926.

Thursday Midday Dairy Market Update - Spot Prices Push Higher

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$4.40 Higher
LIVE CATTLE:	$1.45 Higher
DOW JONES:	147 Points Higher
NASDAQ:	136 Points Higher
CRUDE OIL:	$0.53 Lower

MIDDAY MARKET UPDATE:

Buyers were aggressive in the spot market Thursday. The block cheese price increased 1.25 cents, closing at $1.9475 with five loads traded. This is the highest price since Oct. 7, 2024. The barrel cheese price increased 0.75 cent, closing at $1.87 with five loads traded. There were two unfilled bids each for blocks and barrels, and one uncovered offer for a load of blocks remaining at the close. The dry whey price increased 0.75 cent, closing at 54.25 cents with no loads traded. Class III futures were lower before spot trading but turned higher with contracts posting gains of 3 to 31 cents. The butter price increased 2.00 cents, closing at $2.3625 with 24 loads traded. After a slow first half of the week with no trading activity, the buyers and sellers came out of the woodwork to take care of business. Grade A nonfat dry milk increased 0.50 cent, closing at $1.23 with seven loads traded. Class IV futures are steady to 21 cents higher. Butter futures are 2.00 to 4.75 cents higher. Dry whey futures are 0.75 to 1.27 cents higher.

Fluid Milk and Cream - Western U.S. Report 17

Milk production in California is trending downward. Week-to-week milk production generally is decreasing this month. Some handlers indicate 2025 year-over-year milk output remains down as of week 21, but the 2025 year-over-year gap is continuing to close and is much closer to flat than it was in week 1. Some manufacturers note milk intakes for May 2025 are above anticipated volumes. Central Valley stakeholders convey milk output is in good balance with processing capacities. Class I, III, and IV demands are steady. Class II demand is stronger. 

Farm level milk output in Arizona varies from steady to lighter. Handlers generally describe May 2025 year-over-year milk output as flat. Stakeholders note milk volumes are in good balance with processing capacities and no spot sales for week 21. Class I demand is lighter as educational institutions begin spring recesses. All other Class demands are steady. 

For New Mexico, milk production varies from steady to lighter. Demands for all Classes are unchanged. 

Farm level milk output in the Pacific Northwest varies from steady to lighter. Manufacturers convey milk intakes are meeting anticipated volumes. Class II demand is stronger. Demands for all other Classes are steady. 

Milk production in the mountain states of Idaho, Utah, and Colorado varies from steady to lighter. Some Idaho/Utah handlers convey fat component levels in milk output remain on the high end. Class I demand is lighter as spring recesses start at some educational institutions in the mountain states area. Class II demand is stronger. Class III and IV demands are steady. 

Cream loads continue to be widely available. Demand is stronger. Cream multiples moved higher this week across all facets of both ranges. Condensed skim milk availability and demand are steady.

Thursday Morning Dairy Market Update - Lower Milk Futures Expected

OPENING CALLS:

Class III Milk Futures:	5 to 15 Lower
Class IV Milk Futures:	3 to 5 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	6 to 8 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	5 to 7 Lower

MILK:

The April Milk Production report released on Wednesday was bearish for prices unless demand increases as the year progresses. Milk production was up 1.5%, and the highest it has been so far this year compared to last year. Production is improving, cow numbers are increasing and production per cow is rising. It has been anticipated that milk production per cow would not exceed last year's level, but March and April have seen higher output per cow than the previous year. Increasing underlying cash prices and higher futures prices will keep milk production strong and cow numbers growing. It will be up to demand to continue to support prices.

CHEESE:

The unfilled bids remaining at the close of spot trading on Wednesday suggest buyers will remain aggressive Thursday. However, they may step back as they see milk production increasing compared to a year ago. This indicates there should be sufficient milk supply for manufacturing. Cheese prices may be near a threshold.

BUTTER:

Retail butter demand is improving, but whether it will be enough to generate more aggressive buying interest on the spot market over the next few months is unclear. The price should rise seasonally but may not increase as much as in the past two years. The April Cold Storage report will be released on Friday, providing a better idea of potential.

Wednesday Closing Dairy Market Update - April Milk Production Increased 1.5%

MILK:

Strong price increases in Class III futures improve the price outlook for this year. Class III futures have moved near the highs in some contracts, with the July contract making a new high. This has improved the outlook for milk prices and will keep farmers maintaining cow numbers and pushing milk production. This is clearly seen in the April Milk Production report. Milk futures look better now than they did in April, indicating there may be a greater determination to improve milk production. Milk production in April totaled 18.6 billion pounds, up 1.6% from April 2024 in the top 24 states. Milk production per cow totaled 2,071 pounds, up 12 pounds from a year ago. Milk cows increased by 7,000 head from March, with cow numbers 93,000 head more than a year ago. Milk production in the country was 1.5% higher than a year ago at 19.4 billion pounds. Milk production per cow was 11 pounds higher than a year ago. Cow numbers were 5,000 head above April 2024, totaling 9.425 million head. This paints a bearish outlook for the year, as milk production has been increasing significantly so far this year compared to a year ago. U.S. cow numbers are at the highest level since March 2023. The potential for higher milk prices will push milk production and cow numbers higher.

AVERAGE CLASS III PRICES:

3 Month:	$19.14
6 Month:	$19.19
9 Month:	$18.99
12 Month:	$18.75

CHEESE:

The unfilled bids at the close of spot trading would suggest that cheese prices may move higher again on Thursday. However, the milk production report showed significantly higher milk production, indicating the milk supply may remain strong. An increasing milk supply will keep sufficient milk available for bottling and manufacturing. Buyer interest may be limited over the next few months.

BUTTER:

Butter is not exhibiting any indication of concern from buyers. Supplies have been purchased and moved to inventory, with price weakness allowing buyers to add to those inventories. The butter price has remained in a 12.50-cent sideways range since late February.

OUTSIDE MARKETS SUMMARY:

July corn closed up 6.50 cents per bushel at $4.6100, July soybeans closed up 9.75 cents at $10.6275 and July soybean meal closed up $1.50 per ton at $294.10. July Chicago wheat closed up 3.25 cents at $5.4925. August live cattle closed up $0.80 at $208.65. July crude oil is down $0.69 per barrel at $61.34. The Dow Jones Industrial Average is down 817 points at 41,860, with the NASDAQ down 270 points at 18,873.

April Milk Production in the United States up 1.5 Percent

April Milk Production up 1.6 Percent        

Milk production in the 24 major States during April totaled 18.6 billion pounds, up 1.6 percent from April 2024. March revised production, at 19.1 billion pounds, was up 1.1 percent from March 2024. The March revision represented an increase of 26 million pounds or 0.1 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,071 pounds for April, 12 pounds above April 2024.   The number of milk cows on farms in the 24 major States was 8.98 million head, 93,000 head more than April 2024, and 7,000 head more than March 2025.   

April Milk Production in the United States up 1.5 Percent  

Milk production in the United States during April totaled 19.4 billion pounds, up 1.5 percent from April 2024.  Production per cow in the United States averaged 2,055 pounds for April, 11 pounds above April 2024.  The number of milk cows on farms in the United States was 9.43 million head, 89,000 head more than April 2024, and 5,000 head more than March 2025. 

Wednesday Midday Dairy Market Summary - Class III Futures Jump

OUTSIDE MARKETS SUMMARY:

CORN:	7 Higher
SOYBEANS:	9 Higher
SOYBEAN MEAL:	$1.40 Higher
LIVE CATTLE:	$0.90 Higher
DOW JONES:	713 Points Lower
NASDAQ:	182 Points Lower
CRUDE OIL:	$0.39 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 3.50 cents, closing at $1.9350 with two loads traded. This is the highest price since Jan. 6. The barrel cheese price increased 2.75 cents, closing at $1.8625 with no loads traded. Unfilled bids remained at the close of spot trading with no offers. The dry whey price gained a penny, closing at 53.50 with no loads traded. Class III futures are 3 to 61 cents higher with June showing the greatest gain. The butter price remained unchanged at $2.3425 with no loads traded. Grade A nonfat dry milk remained unchanged at $1.2250 with no loads traded. Class IV futures are 9 to 10 cents lower. Butter futures are 1.00 cents lower to 0.40 cent higher. Dry whey futures are 0.25 to 1.20 cents higher. USDA will release the April Milk Production report this afternoon.

Wednesday Morning Dairy Market Update - Milk Futures May Find Stability

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:	6 to 8 Higher
Soybean Meal Futures:	Steady to $1 Higher
Wheat Futures:	2 to 3 Higher

MILK:

Milk futures are finding some stability due to the choppy action of the underlying cash. It is uncertain whether underlying cash prices will hold at the current level and move higher as the summer progresses and buyers prepare for later demand or whether milk production will increase, keeping prices suppressed for an extended period. The April Milk Production report will be released Wednesday and indicate what we may see as the year progresses. I estimate milk production to be 0.8% above a year ago and cow numbers up 4,000 head from March. The better price outlook has likely increased the desire of farms to keep stalls full and push milk production.

CHEESE:

Cheese demand will need to improve to keep supply from building. Cheese production is increasing as more milk moves to manufacturing as schools close for the summer. Buyers may not be quite as active as they had been as the supply of cheese remains readily available. Prices may need to decline somewhat to stimulate buying interest for demand later in the year.

BUTTER:

There is not much to be said about butter, as supply and demand seem to be balanced. Churning remains active with butter inventory higher than a year ago. Buyers purchased quite a bit of butter earlier at lower prices for later demand. This may leave them less aggressive later in the year. The price is expected to remain sideways.

Tuesday Closing Dairy Market Update - Global Dairy Trade Declines 0.9%

MILK:

Milk futures closed mixed after initial weakness in the morning. The fundamentals remained much as they have been leaving the market reacting to daily trading activity. The Global Dairy Trade Auction trade-weighted average declined 0.9% from the previous event. There were 15,194 metric tons of products traded at an average price of $4,589 per metric ton. Anhydrous milk fat increased 0.9% to $7,237 per metric ton or $3.28 per pound. The butter price decreased 1.5% to $7,821 per metric ton or $3.55 per pound. Cheddar cheese decreased 9.2% to $5.007 per metric ton or $2.27 per pound. Lactose fell 13.2% to $1,398 per metric ton or $0.63 per pound. Skim milk powder price decreased 0.7% to $2,817 per metric ton or $1.28 per pound. The whole milk powder decreased 1.0% to $4,337 per metric ton or $1.97 per pound. Mozzarella increased 0.7% to $4,786 per metric ton or $2.17 per pound. The USDA will release the April Milk Production report on Wednesday.

AVERAGE CLASS III PRICES:

3 Month:	$18.84
6 Month:	$18.97
9 Month:	$18.84
12 Month:	$18.62

CHEESE:

Cheese prices may have reached a threshold from which further upside price potential may be limited in the near term. Buyers may not be interested in paying much more for cheese as much of their immediate needs are filled, and it is too early to build inventory for later demand. Inventory is increasing seasonally as cheese production increases, but buyers do not want to increase inventory and pay for storage being uncertain of the increase in demand.

BUTTER:

The butter price is in a range and may remain that way into the summer. Seasonally, the butter price increases during the second half of the year and that is possible this year as well. Retail demand is reportedly increasing as the reasonable price increases buying interest.

OUTSIDE MARKETS SUMMARY:

July corn closed up 7.00 cents per bushel at $4.5450, July soybeans closed up 3.50 cents at $10.5425 and July soybean meal closed down $.80 per ton at $291.10. July Chicago wheat closed up 18.25 cents at $5.4725. June live cattle closed up $0.75 at $212.97. July crude oil is up $0.11 per barrel at $62.25. The Dow Jones Industrial Average is down 115 points at 42,677, with the NASDAQ down 73 points at 19,143.

Tuesday Midday Dairy Market Summary - Traders Focus on Blocks

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$2.30 Higher
LIVE CATTLE:	$0.50 Higher
DOW JONES:	114 Points Lower
NASDAQ:	49 Points Lower
CRUDE OIL:	$0.20 Higher

MIDDAY MARKET UPDATE:

The block cheese price gained 0.25 cent, closing at $1.90 with 11 loads traded. The price initially declined 1.25 cents before more aggressive buying brought it back up off the low. There were two unfilled bids and three uncovered offers remaining at the close. The barrel price declined 2.00 cents, closing at $1.8350 with two loads traded. The dry whey price declined 1.50 cents, closing at 52.50 cents with five loads traded. The decline of barrel and dry whey prices should have kept significant pressure on Class III futures, but current contracts are mixed, ranging from 15 cents lower to 11 cents higher. The butter price remained unchanged with no loads traded. Buyers are comfortable with the current price, with bids and offers placed during spot trading, but had no interest or need to move those prices. Grade A nonfat dry milk slipped 0.50 cent, closing at $1.2250 with two loads traded. Class IV futures showed trading activity in the March contract with the price up 2 cents. Butter futures are 0.17 cent lower to 0.25 cent higher. Dry whey futures are 0.50 to 1.47 cents lower. The Global Dairy Trade Auction trade-weighted average decreased 0.9% from the previous event.