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.
