Tuesday Closing Dairy Market Update - GDT Declines 1.0%

MILK:

There had been early hope of cheese prices being low enough to increase the buying interest in cheese, but such was not the case. Class III futures did not see the pressure that would have generally been placed on futures with the spot price declines, but losses were seen. There was little for traders to get excited over, leaving trading volume moderate. The Global Dairy Trade auction took place with the trade-weighted average declining 1.0% from the previous event. The average price was $4,389 per metric ton with 15,209 metric tons sold. Anhydrous milk fat declined 1.3% to $7,276 per metric ton or $3.30 per pound. Butter increased 1.4% to $7,890 per metric ton or $3.58 per pound. Cheddar cheese increased 5.1% to $4,992 per metric ton or $2.26 per pound. Lactose declined 3.6% to $1.323 per metric ton or $0.60 per pound. Mozzarella declined 1.9% to $ 4,802 per metric ton or $2.18 per pound. Skim milk powder declined 1.3% to $2,775 per metric ton or $1.26 per pound. Whole milk powder declined by 2.1% to $4,084 per metric ton or $1.85 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$18.42
6 Month:	$18.67
9 Month:	$18.60
12 Month:	$18.50

CHEESE:

Cheese prices continue to erode as sellers want to move supply rather than hold it for later and risk paying storage costs without being able to recover those costs. That gives the impression that there could be limited upside price potential. Higher cheese output will keep the market supplied, demand met, and inventories built for later demand. Buyers continue to hold back, letting the sellers come to their lower prices.

BUTTER:

The weakness of butter today may be short-lived as international demand remains strong due to the U.S. price being low compared to the world price. Export demand so far this year has been running 180% ahead of the same period last year. Buyers have been increasingly aggressive as they want to increase ownership of supply in case the market tightens as the year progresses.

Outside Markets Summary:

July corn closed down 3.25 cents per bushel at $4.3150, July soybeans closed up 4.25 cents at $10.7400 and July soybean meal closed up $1.40 per ton at $285.10. July Chicago wheat closed up 12.50 cents at $5.4900. August live cattle closed down $4.90 at $210.65. July crude oil is up $3.30 per barrel at $75.07. The Dow Jones Industrial Average is down 299 points at 42,216, with the NASDAQ down 180 points at 19,521.

Tuesday Midday Dairy Market Summary - Still No Bottom in Cheese

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$1.40 Higher
LIVE CATTLE:	$2.92 Lower
DOW JONES:	148 Points Lower
NASDAQ:	99 Points Lower
CRUDE OIL:	$2.14 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 2.50 cents, closing at $1.7550 with 13 loads traded. There were seven unfilled bids and three uncovered offers remaining at the close of spot trading. This could suggest a balanced market, but it does not indicate the price has found a bottom. The barrel cheese price declined by 2 cents, closing at $1.77 with one load traded. There were two unfilled bids and no offers. The dry whey price increased 0.50 cent, closing at 55.25 with no loads traded. Class III futures are mixed from 6 cents lower to 19 cents higher. The butter price declined 1.50 cents, closing at $2.5775 with five loads traded. Grade A nonfat dry milk declined 0.50 cent, closing at $1.2650 with one load traded. Class IV futures have only traded in the March contract at 8 cents lower. Butter futures are 0.50 to 3.22 cents lower. Dry whey futures are 0.50 cent lower to 0.55 cent higher.

Tuesday Morning Dairy Market Update - Traders Look for Bullish News

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The spot cheese market will need to prove itself before traders will be interested in buying Class III futures. Cheese prices have not found a level to trigger the buying interest in the spot market. Increased cheese production with more milk moving to manufacturing has resulted in greater interest in moving supply to the market rather than building supply at the plant level. Milk production has been holding strong after the spring flush peak, keeping sufficient milk available for bottling and manufacturing demand. The recent weakness of milk futures is dimming the price outlook for now, but it will not impede milk output as dairy farms will continue to push milk production for cash flow. Stalls are being kept full and feed prices are reasonable.

CHEESE:

Cheese has yet to find a bottom. It seems as if prices have fallen apart, but it has not been that long ago that prices were at the current levels. In the middle of March, cheese prices were about 20 cents lower than they currently are. The weakness is not as devastating as it feels, but there is hope prices will soon find a bottom.

BUTTER:

The butter price is following a seasonal direction and a pattern similar to 2023. The price remained in a range during the first half of that year and then moved to a record high over a three-month period. The fundamentals are not the same, but there are similarities in pattern. Churning is active, but cream supplies are not as abundant as they had been.

Monday Closing Dairy Market Update - April Fluid Milk Sales Decline 1.8%

MILK:

Class III milk futures closed lower in most contracts, with the July and August contracts showing the greatest losses on moderate trading activity. Class IV futures closed higher, further widening the spread between Class III and Class IV contracts. Packaged fluid milk sales in April declined 1.8% compared to the previous year. This has been a trend for quite some time. Fortunately, demand has increased for cheese, yogurt, and other dairy products, keeping overall demand growing. Whole milk sales increased 1.3%; flavored whole milk increased 12.7%; reduced fat milk sales declined 4.4%; lower fat milk declined 8.6%; fat-free skim milk declined 5.6%; flavored reduced fat declined 10.7%, buttermilk sales increased 0.3%, with other fluid milk sales increasing 19.7%. Organic whole milk increased 7.7%; organic flavored whole milk fell 43.0%; organic reduced fat milk increased 3.9%; organic low-fat milk declined 21.0%; organic fat-free declined 13.2%; organic flavored fat-reduced milk fell 63.2%, with other organic fluid milk product sales up 76.9%.

AVERAGE CLASS III PRICES:

3 Month:	$18.43
6 Month:	$18.72
9 Month:	$18.63
12 Month:	$18.52

CHEESE:

Block cheese moved to the lowest level it has been since May 13, while barrels are at the lowest level since May 14. The weakness has not been kind to milk futures. Prices were much lower in March than they are currently. There may be significant downside potential, but lower prices should increase buyer interest. The hope is that it materializes soon.

BUTTER:

The butter price has moved in the opposite direction to the highest price it has been since January 13. After substantial volume has been traded on the spot market over the past two weeks, it was a surprise to see only one load traded today. After the one load was traded, there were no unfilled bids or uncovered offers remaining. It is difficult to determine whether buying interest has been satisfied for the time being or whether sellers have moved all they need to move for now.

Outside Markets Summary:

July corn closed down 9.75 cents per bushel at $4.3475, July soybeans closed steady at $10.6975 and July soybean meal closed down $8.20 per ton at $283.70. July Chicago wheat closed down 7.25 cents at $5.3650. August live cattle closed up $3.10 at $215.55. July crude oil is down $1.50 per barrel at $71.48. The Dow Jones Industrial Average is up 317 points at 42,515, with the NASDAQ up 294 points at 19,701.

Monday Midday Dairy Market Summary - Cheese Shows Further Pressure

OUTSIDE MARKETS SUMMARY:

CORN:	9 Lower
SOYBEANS:	1 Lower
SOYBEAN MEAL:	$7.80 Lower
LIVE CATTLE:	$1.85 Higher
DOW JONES:	384 Points Higher
NASDAQ:	307 Points Higher
CRUDE OIL:	$1.08 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 5.75 cents, closing at $1.78 with 11 loads traded. The barrel cheese price declined 4.50 cents, closing at $1.79 with no loads traded. Lower prices are unable to stimulate aggressive buying interest. The dry whey price declined 0.50 cents to 54.75 cents with one load traded. Class III futures are 20 cents lower to 6 cents higher. The butter price increased 2.25 cents, closing at $2.5925 with one load traded. Grade A nonfat dry milk increased 0.25 cent, closing at $1.27 with one load traded. Class IV futures are steady to 5 cents lower. Butter futures are 0.87 cent lower to 2.50 cents higher. Dry whey futures are 0.05 to 0.30 cent higher.

Monday Morning Dairy Market Update - Overnight Trade Points to Lower Prices

OPENING CALLS:

Class III Milk Futures:	3 to 6 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Lower
Soybean Futures:	2 to 4 Higher
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	5 to 6 Lower

MILK:

The bearish environment continued in overnight trade and may continue today unless buyers become aggressive at the lower prices of cheese and decide to increase ownership for later demand. Otherwise, there is little for traders to get excited over as cheese prices struggle. There is little indication of hot weather impacting milk production in most areas. Production remains above a year ago and is expected to continue that way for the foreseeable future. The current milk prices will not deter maintaining or adding cow numbers and increasing production per cow. Traders are expected to be cautious ahead of spot trading. They will wait for underlying cash to provide direction.

CHEESE:

Increased cheese output is being reflected in the spot market as cheese prices have not found support. Cheese demand has improved at the retail level, but increased cheese output leaves sufficient available for buyers. The lower cheese prices should garner buyer interest.

BUTTER:

The price moved to the highest level in five months as buyers have remained aggressive despite sellers offering a lot of loads. Last week, there were 135 loads traded on the spot market. Strength is expected to continue due to increased demand and a seasonal price increase. The market seems to be following a similar pattern to 2023.

Friday Closing Dairy Market Update - Milk Output Is Expected to Increase

MILK:

USDA raised its estimate for milk production this year by 500 million pounds from its May estimate to 227.8 billion pounds. If this is realized, milk output would be 1.9 billion pounds higher than in 2024 and a record milk production. There is optimism over higher milk prices as the year unfolds, but the estimate for the average Class III milk price this year was lowered by $0.05 to $18.65. Unfortunately, the average estimated price for 2026 is $17.80, down $0.85 per cwt. The Class IV average price was raised by $0.40 to $18.85 this year, while the average price for 2026 is lower at $18.20. The All-milk piece for 2026 is estimated at $21.30. This would be $0.65 per cwt lower than the projected average for this year. All of the prices for this year are projected to be lower than last year, and the projections for 2026 are below this year. This does not make one feel very warm and fuzzy about future milk prices and income. However, much can change over the next 1 1/2 years.

AVERAGE CLASS III PRICES:

3 Month:	$18.54
6 Month:	$18.77
9 Month:	$18.66
12 Month:	$18.55

CHEESE:

For the week, blocks declined by 2.00 cents, with 26 loads traded. The weekly average price was $1.8595. Barrels declined 2.50 cents, with only one load traded. The weekly average price was $1.8520. Dry whey declined 2.75 cents, with seven loads traded. The weekly average price was 56.40 cents. USDA raised the average dry whey price this year to 56.50 cents, up 3.00 cents from the May estimate. The average for 2026 was raised 4.00 cents to average 51.00 cents per pound.

BUTTER:

For the week, butter increased 1.50 cents, with 135 loads traded. The weekly average price was $2.54. Over the past two weeks, 237 loads of butter have been traded on the spot market. The sellers were willing to move the supply with the buyers willing to purchase it. The strength of the butter price over the past few weeks prompted the USDA to raise its price estimate this year by 7.50 cents to an average of $2.5350 for this year.

Outside Markets Summary:

July corn closed up 6.00 cents per bushel at $4.4450, July soybeans closed up 27.50 cents at $10.6975 and July soybean meal closed down $2.60 per ton at $291.90. July Chicago wheat closed up 17.25 cents at $5.4375. August live cattle closed down $4.50 at $212.45. July crude oil is up $4.94 per barrel at $72.98. The Dow Jones Industrial Average is down 770 points at 42,198, with the NASDAQ down 256 points at 19,407.

Friday Morning Dairy Market Update - Cheese May Find Support at These Prices

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	Steady to 3 Higher
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	4 to 5 Higher

MILK:

Traders find little reason to buy milk futures aggressively. The underlying weakness of the cheese prices has turned the market bearish. The overall weather has been good for milk production, keeping sufficient milk available for bottling and manufacturing needs. Overnight trading activity was light but points to lower futures ahead of the spot trading period. Demand for dairy products is expected to improve as the summer progresses, but the extent of the increase may be limited due to high food prices and consumers adjusting their diets. Not only that, but all prices of goods and services have increased, reducing disposable income.

CHEESE:

Increased cheese output is being reflected in the spot market as cheese prices have not found support. Cheese demand has improved at the retail level, but increased cheese output leaves sufficient available for buyers. The lower cheese prices should garner buyer interest.

BUTTER:

There has been a lot of activity during spot trading, with 98 loads of butter changing hands this week. We may see more traded this week than last week, when there were 102 loads traded. Demand is improving and buyers are purchasing supplies to meet that demand and increase ownership for expected later demand.

Thursday Midday Dairy Market Summary - Butter Demand Strong

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	10 Lower
SOYBEAN MEAL:	Unchanged
LIVE CATTLE:	$0.15 Lower
DOW JONES:	5 Points Higher
NASDAQ:	27 Points Higher
CRUDE OIL:	$0.31 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 2 cents, closing at $1.84 with only one load traded. The barrel cheese price slipped 0.50 cent, closing at $1.8500 with no loads traded. The dry whey price declined 1.25 cents, closing at 55.25 with two loads traded. Barrel cheese closed spot trading on an offer. In barrels, there was one unfilled bid at $1.82. Class III futures are 3 to 14 cents lower. The butter price increased 1.50 cents, closing at $2.5450 with 23 loads traded. There were seven unfilled bids remaining at the close, with only one uncovered offer. Grade A nonfat dry milk remained unchanged at $1.2650 with no loads traded again today. Class IV futures are 2 cents lower to 4 cents higher. Butter futures are 0.475 to 7.475 cents higher. Dry whey futures are 0.225 to 0.925 cent lower.

Fluid Milk and Cream - Western U.S. Report 24

Milk production in California is seasonally decreasing. Manufacturers generally indicate milk volumes are sufficient for production needs. However, milk output levels are not allowing facilities to run at full capacities in some cases. Spot load availability is tighter. Class I demand is lighter. All other Class demands are steady. According to the California Department of Water Resources, as of June 10, 2025, the state precipitation total is 21.74 inches for the current 2024-25 Water Year, which is 0.87 inch below the historical mean. 

For Arizona, farm level milk output is trending downward. Stakeholders note daytime temperatures have gotten to triple digits. Demands for all Classes are steady. 

Milk production in New Mexico is lighter. All Class manufacturing demands are steady. 

Farm level milk output in the Pacific Northwest is lighter. Some manufacturers note parts of the Pacific Northwest had record setting temperatures recently and that this contributed to lower than anticipated milk intake volumes. Class I, II, III, and IV demands are steady. 

Milk production in the mountain states of Idaho and Utah varies from steady to lighter. Manufacturers convey milk volumes remain more than adequate for the most part. 

Milk production in Colorado is lighter. Class I, II, III, and IV demands in the mountain states are steady. 

Cream loads are available in the region. Although stakeholders describe cream demand as stronger, cream multiples have not changed from week 23. Condensed skim milk availability is tighter. Condensed skim milk demand is steady.

Thursday Morning Dairy Market Update - Milk Futures Lack Support

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 Higher
Soybean Futures:	2 to 4 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	1 to 2 Higher

MILK:

Milk futures have not been able to find a bottom with Class III contracts nearly eliminating the gains since the beginning of May. Traders have had little to get excited about as underlying cash has been unable to trend higher. The higher prices seen a few weeks ago have evaporated, but that has not dampened the interest of farmers to maintain cow numbers and improve milk production. USDA will release the World Agricultural Supply and Demand (WASDE) report this morning. The report contains USDA's estimates for milk production, milk prices and dairy product prices for this year and 2026.

CHEESE:

Retail cheese demand is improving, but it has not been enough to offset the increasing cheese production; otherwise, cash prices would be trending higher. Cheese buyers see no need to be aggressive as the supply keeps up with demand. Buyers are purchasing what comes to the spot market without being concerned about supply.

BUTTER:

The butter price seems to have found a level where buyers and sellers are comfortable and may remain sideways. However, strong export demand and improving retail demand should support the market. Churning remains active but is expected to slow as summer weather impacts milk output and component values.

Wednesday Closing Dairy Market Update - April Exports Decline 5%

MILK:

Milk production is higher than a year ago. The spring flush is past its peak, but output remains strong. Reports from the Eastern region of the country indicate that milk output and components are higher than a year ago. More milk is moving to manufacturing due to schools being closed for the summer, resulting in higher cheese production. More cheese is available to the market, with sellers moving it to the spot market to limit inventory building at the plant level. Dairy exports declined 5% in April. Much of the weakness came from significant declines in whey and nonfat dry milk due to the trade tensions with China. Low-protein whey exports to China declined 37% from a year ago. Cheese exports decreased by 60%, and nonfat dry milk/skim milk powder exports decreased by 50%. It was not as bad as it sounds, as China imports low volumes of cheese and nonfat dry milk/skim milk powder. However, it is a concern as lower exports to China may continue.

AVERAGE CLASS III PRICES:

3 Month:	$18.60
6 Month:	$18.82
9 Month:	$18.70
12 Month:	$18.58

CHEESE:

April cheese exports totaled 49,392 metric tons, up 7.5% from April 2024. Year-to-date exports are up 7.1%. Whey exports fell 20.5%, totaling 36,023 metric tons. Year-to-date exports are 4.1% lower than a year ago. Whey protein concentrate +80 exports totaled 8,643 metric tons, up 22.7% from a year ago, with year-to-date exports up 12.3%. Lactose exports increased 11.3%, totaling 36,541 metric tons, with year-to-date exports down 3.0%.

BUTTER:

April butterfat exports jumped 159.0% from April 2024, totaling 8,497 metric tons. Year-to-date exports are 180.8% above the same period last year. Nonfat dry milk/skim milk powder exports fell 21.2%, totaling 51,492 metric tons, with year-to-date exports down 16.2%.

OUTSIDE MARKETS SUMMARY:

July corn closed down 1.75 cents per bushel at $4.3700, July soybeans closed down 7.25 cents at $10.5050 and July soybean meal closed down $1.70 per ton at $294.20. July Chicago wheat closed down .25 cent at $5.3425. August live cattle closed down $0.18 at $218.03. July crude oil is up $3.05 per barrel at $68.03. The Dow Jones Industrial Average is down one point at 42,866, with the NASDAQ down 99 points at 19,616.

Wednesday Midday Dairy Market Summary - Cheese Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	6 Lower
SOYBEAN MEAL:	$1.80 Lower
LIVE CATTLE:	$0.85 Higher
DOW JONES:	203 Points Higher
NASDAQ:	10 Points Higher
CRUDE OIL:	$1.97 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 2 cents, closing at $1.86 with five loads traded. The barrel cheese price slipped 0.50 cent, closing at $1.8550 with no loads traded. The dry whey price declined 0.75 cent, closing at 56.50 with three loads traded. Blocked cheese closed spot trading on an offer. There were two unfilled bids, with one at $1.82 and one at $1.8275. It is a concern that those are the nearest prices buyers were willing to do business. Class III futures are 27 cents lower to 8 cents higher. The butter price increased 2.50 cents, closing at $2.53 with 35 loads traded. There were 32 unfilled bids remaining at the close, with only one uncovered offer. Grade A nonfat dry milk remained unchanged at $1.2650 with no loads traded. Class IV futures are 6 cents lower to 12 cents higher. Butter futures are steady to 2.50 cents higher. Dry whey futures are 0.35 to 0.55 cent lower.

Wednesday Morning Dairy Market Update - Milk Futures Struggle to Find Support

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Traders seem to embrace bearishness more readily than bullishness. The steady cheese prices and the slight decline of dry whey on Tuesday triggered aggressive selling in Class III futures. Class IV futures were lower, but that stands to reason due to the weakness of butter. The market will need to prove itself before traders will turn bullish. The hope is that the market will find stability and then increase seasonally. Even with milk futures at the current levels, farmers will keep stalls full and push production. Cow numbers are anticipated to increase as the high heifer prices are being paid and culling remains slower than a year ago.

CHEESE:

The current supply of cheese is sufficient for demand and may keep a lid on the upside price potential for the time being. Cheese manufacturing remains steady at a higher level after schools closed for the summer. Cheese buyers will purchase at lower prices but may remain unaggressive unless there is an increase in demand requiring them to increase ownership.

BUTTER:

There has been quite a bit of cash activity so far this week. Sellers are moving supplies to limit the inventory at the plant level. Lower prices keep buyers active as they purchase what is offered to increase ownership and protect against higher prices later in the year. This should limit downside risk.

Tuesday Closing Dairy Market Update - Milk Futures Close Under Pressure

MILK:

Class III milk futures suffered greater losses than Class IV, but not by very much. With cheese prices remaining steady and butter showing weakness, it should have put more pressure on Class III contracts. Milk production is higher than a year ago, and more milk is moving to manufacturing, but it is not overwhelming the market. Demand shows signs of improvement, which could limit downside price weakness. The prices today are concerning as traders are quick to sell the market with disappointing cash activity. Nearby July Class III futures made a new low, moving to the lowest price since May 5. The August contract fell 32 cents, remaining barely above $19.

AVERAGE CLASS III PRICES:

3 Month:	$18.78
6 Month:	$18.99
9 Month:	$18.85
12 Month:	$18.69

CHEESE:

Buyers and sellers were comfortable with the current prices with no urgency to buy or sell. The buyers are trying to limit purchases to current demand or expected demand in the near term. They want to limit buying for the long term to avoid having to pay more for storage.

BUTTER:

The butter price declined, but there are willing buyers. There were 30 loads traded today, with quite a few unfilled bids remaining at the close, indicating buyers are willing to pick up what is being offered if the sellers reduced prices. Even though butter buying has been active numerous times this year and butter was put into storage, buyers want to hedge against the potential for higher prices by increasing ownership.

OUTSIDE MARKETS SUMMARY:

July corn closed up 5.25 cents per bushel at $4.3875/bu, July soybeans closed up 1.75 cents at $10.5775 and July soybean meal was up $0.40 per ton at $295.90. July Chicago wheat was down 7.50 cents at $5.3450. August live cattle closed down $1.05 at $218.20. July crude oil is down $0.31 per barrel at $64.98. The Dow Jones Industrial Average is up 105 points at 42,867 points, with the NASDAQ up 124 points at 19,715.

Tuesday Morning Dairy Market Update - Milk Futures May Consolidate

OPENING CALLS:

Class III Milk Futures:	4 to 6 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	Mixed
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	4 to 6 Lower

MILK:

Milk futures are having a difficult time regaining the losses sustained this month. Underlying cheese prices may be developing a level at which buyers and sellers are comfortable taking care of business. This will limit the upside price potential in the near term. Milk production continues to outpace a year ago and is expected to remain that way as cow numbers are higher and production per cow increases. The World Agricultural Supply and Demand report will be released on Thursday and is expected to show USDA raising its estimates for milk and dairy product prices.

CHEESE:

Block cheese may regain the loss that took place Friday, but further upside price gains may be difficult to achieve. Cheese supply remains sufficient for demand, with cheese output increasing. Inventory should decrease during the last half of the year, which could support prices through the fall.

BUTTER:

The butter price seems to be consolidating but is expected to trend higher as the summer progresses. Retail demand is improving, and cream supplies will slowly tighten as hot weather reduces the butterfat content in milk. Ice cream production is pulling larger quantities of cream for production.

Monday Closing Dairy Market Update - Milk Futures Could Not Hold Early Strength

MILK:

Milk production has passed the spring flush period but is holding steady in many areas. Hot weather has not been widespread and has not had much impact on milk production or component values. Schools are now closed for the summer, with more milk moving to manufacturing. That is not expected to pressure prices as demand should utilize the supply. Crop conditions are improving as good rains have fallen in most areas. The weekly corn crop condition is 71% good/excellent. This was an increase of 2% from last week. The soybean crop is 68% good/excellent, up 1% from last week. If this continues, it will ensure plentiful feed supplies and low prices. That will improve the income over feed prices if milk prices maintain the current levels and increase as the year progresses.

AVERAGE CLASS III PRICES:

3 Month:	$18.99
6 Month:	$19.13
9 Month:	$18.95
12 Month:	$18.78

CHEESE:

Cheese prices may have found a level at which buyers and sellers might be comfortable doing business. Supplies are sufficient for demand. Cheese output has been steady, with an increase expected with more milk moving to the vat. The question is whether demand will absorb the extra production, allowing prices to improve as time progresses. The current inventory remains below a year ago but will not be the only reason cheese prices will see upside price potential. Demand needs to exceed supply to push prices higher.

BUTTER:

Butter is holding the gains from last week, but buyers have not been aggressive to begin the week. The price is expected to see further gains as domestic demand improves and international demand remains strong. The price generally increases during the summer, and this year should be no exception due to the inventory falling in April below a year earlier.

OUTSIDE MARKETS SUMMARY:

July corn closed down 9.00 cents per bushel at $4.3350, July soybeans closed down 1.25 cents at $10.5600 and July soybean meal closed down $.20 per ton at $295.50. July Chicago wheat closed down 12.75 cents at $5.4200. August live cattle closed up $0.38 at $219.25. July crude oil is up $0.71 per barrel at $65.29. The Dow Jones Industrial Average is down 1 point at 42,762, with the NASDAQ up 61 points at 19,591.

Monday Midday Dairy Market Summary - Mixed Spot Prices

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	1 Lower
SOYBEAN MEAL:	$0.30 Lower
LIVE CATTLE:	$0.35 Higher
DOW JONES:	13 Points Lower
NASDAQ:	74 Points Higher
CRUDE OIL:	$0.25 Higher

MIDDAY MARKET UPDATE:

The block cheese price gained 2.25 cents, closing at $1.88 with five loads traded. The barrel cheese price remained steady at $1.86 with no loads traded. The dry whey price slipped 0.25 cent, closing at 57.75 cents with no loads traded. Traders did not get excited about blocks regaining some of the loss from Friday, looking at the market movement as just normal business being done. Class III futures are 3 cents lower to 6 cents higher. The butter price declined 0.50 cent, closing at $2.55 with 10 loads traded. Grade A nonfat dry milk gained 0.25 cent, closing at $1.2650 with six loads traded. Class IV futures are 20 to 21 cents lower. Butter futures are 1.37 to 4.15 cents lower. Dry whey futures are unchanged to 0.35 cent lower.

Monday Morning Dairy Market Update - Limited Futures Activity Ahead of Spot Trading

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The beginning of the week is expected to be slow with traders uncertain of the direction of the underlying cash. The weakness of block cheese on Friday was a surprise and an indication that cash will remain volatile. There is no shortage of milk for manufacturing as schools are closed for the summer. This leaves sufficient milk available for the production of dairy products. Demand is showing signs of increasing, which should support milk prices. The extent of that support is uncertain. Demand needs to improve to keep pace with increasing milk production or milk prices will have limited upside potential.

CHEESE:

The weakness of block cheese seen on Friday is expected to be short lived. Buyers may take advantage of the weakness to purchase any cheese that might be available at lower prices. Sellers may not be too adamant about selling at lower prices, limiting the downside.

BUTTER:

The butter price is expected to increase slowly. Buyers are active as 102 loads changed hands on the spot market last week and the price still gained 8 cents, moving to the highest price since Jan. 15. The market may follow a similar pattern to 2023. Fundamentals are different, but price movement may be similar.

Friday Closing Dairy Market Update - An Active Week for Butter

MILK:

Class III futures moved in the opposite direction from what the underlying spot cheese prices would have indicated. Some of the influences that provided strength were the bullish implications of the Dairy Products report. The higher production of dairy products was unable to move inventory above a year ago, indicating good demand. This triggered aggressive buying interest from traders who sold positions at the beginning of the week, wanting to preserve some of their profits ahead of the weekend. This triggered increased buying interest with some of the profits that had been realized fizzling before some positions were offset. Trading activity was moderate with most of the activity confined to the July contract.

AVERAGE CLASS III PRICES:

3 Month:	$19.03
6 Month:	$19.15
9 Month:	$18.97
12 Month:	$18.79

CHEESE:

For the week, blocks fell 9 cents with 34 loads traded. The weekly average price was $1.9215. Barrels declined a penny with seven loads traded. The weekly average price was $1.8545. Dry whey gained 0.75 cent with 12 loads traded. The weekly average price was 56.75 cents. Barrels closed above blocks for the first time since May 6.

BUTTER:

For the week, butter jumped 8 cents with 102 loads traded. The weekly average price was $2.5365. Sellers were actively looking to move supplies to keep plant inventories from increasing more than desired. Buyers were willing to purchase what was offered without holding back. Grade A nonfat dry milk declined 2.50 cents for the week, with 13 loads traded. The weekly average price was $1.2725.

OUTSIDE MARKETS SUMMARY:

July corn closed up 3.00 cents per bushel at $4.4250, July soybeans closed up 5.50 cents at $10.5725 and July soybean meal closed down $1.40 per ton at $295.70. July Chicago wheat closed up 9.25 cents at $5.5475. August live cattle closed up $2.05 at $218.88. July crude oil is up $1.40 per barrel at $64.77. The Dow Jones Industrial Average is up 443 points at 42,763 with the NASDAQ up 232 points at 19,530.

Friday Midday Dairy Market Summary - Block Cheese Falls Below Barrels

OUTSIDE MARKETS SUMMARY:

CORN:	4 Higher
SOYBEANS:	7 Higher
SOYBEAN MEAL:	$0.70 Lower
LIVE CATTLE:	$2.40 Higher
DOW JONES:	354 Points Higher
NASDAQ:	236 Points Higher
CRUDE OIL:	$1.15 Higher

MIDDAY MARKET UPDATE:

The block cheese price fell 6.25 cents, closing at $1.8575 with 21 loads traded. The barrel cheese price remained unchanged at $1.86 with no loads traded. There were four unfilled bids remaining for blocks at the close, with no buyers or sellers showing up to do any business in barrels. The dry whey price increased 1.25 cents, closing at 58.00 cents with two loads traded. Class III futures should have been lower due to the pressure on blocks, with the price falling below barrels. However, Class III futures are 14 cents lower to 31 cents higher, with the losses confined to the February and later contracts. The butter price slipped 0.25 cent, closing at $2.5550 with 23 loads traded. Grade A nonfat dry milk remained unchanged at $1.2625 with three loads traded. Class IV futures have not yet been traded. Butter futures are steady to 0.92 cent lower. Dry whey futures are 0.20 cent lower to 1.00 cents higher.

Friday Morning Dairy Market Update - Milk Futures May Rebound

OPENING CALLS:

Class III Milk Futures:	5 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	3 to 4 Lower

MILK:

The April Dairy Products report released on Thursday was bullish, indicating that butter and cheese output were higher than a year ago, but this was not reflected in the Cold Storage report. Inventory increased in April but not at the usual rate, with cheese supplies remaining below a year ago and butter falling below a year ago. Strong milk production has not had the impact that had been anticipated earlier in the year. The potential impact of tariffs on exports has not materialized as exports have remained strong. Improving demand should support milk prices, but readily available supplies may limit the upside price potential.

CHEESE:

Cheese prices may chop around for a time, as buyers and sellers may be comfortable at the current price levels. Cheese production is steady, even though more milk is available for manufacturing.

BUTTER:

The butter price slipped on Thursday, but buyers were willing to purchase what was offered on the spot market. There have been 79 loads of butter traded this week, with more likely to change hands Friday. There may be substantial upside price potential due to strong exports and improving domestic demand.

Thursday Closing Dairy Market Update - April Dairy Product Production Outpaces a Year Ago

MILK:

Milk futures have been struggling as traders are uncertain over the upside price potential in the near term. Milk production has passed the peak of spring flush but is holding well in most areas. Some plants are not running at capacity but are not short of milk by any means. Most plants indicate production is adequate for demand. Milk supply is expected to decrease as the weather turns hotter, but the level of decline is difficult to determine due to greater efficiency in cooling cows. Milk components are holding well and remain above a year ago. Spot milk prices range from $5.00 under class to $1.00 over class.

AVERAGE CLASS III PRICES:

3 Month:	$18.85
6 Month:	$18.93
9 Month:	$18.78
12 Month:	$18.67

CHEESE:

The April Dairy Products report showed American cheese output at 492 million pounds, up 6.1% from April 2024. Italian-type cheese production totaled 517 million pounds, up 2.2% from a year ago. Total cheese output reached 1.23 billion pounds, up 3.1% above April 2024. Strong cheese output did not overwhelm the market. The inventory of cheese increased in April but remained below a year ago. This indicates demand has been strong as higher production has not been able to build inventory very much. Dry whey production totaled 68.9 million pounds, down 14.9% from a year earlier. Lactose output reached 95.4 million pounds, up 4.0%. Whey protein concentrate totaled 42.2 million pounds, up 6.5%.

BUTTER:

Butter production in April totaled 216 million pounds, up 3.9% from a year earlier. Even with the strong production inventory fell 7% below a year ago. Heavy cream supply and active churning have not had a negative impact on the market. Nonfat dry milk production totaled 163 million pounds, down 6.1%. Skim milk powder declined 20.8% to 35.5 million pounds.

OUTSIDE MARKETS SUMMARY:

July corn closed up .75 cent per bushel at $4.3950, July soybeans closed up 6.75 cents at $10.5175 and July soybean meal closed steady at $297.10. July Chicago wheat closed up 2.25 cents at $5.4550. August live cattle closed up $4.48 at $216.83. July crude oil is up $0.40 per barrel at $63.25. The Dow Jones Industrial Average is down 108 points at 42,320 with the NASDAQ down 162 points at 19,298.

Thursday Midday Dairy Market Summary - Class III Futures Under Pressure

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	8 Higher
SOYBEAN MEAL:	$1.10 Higher
LIVE CATTLE:	$3.77 Higher
DOW JONES:	18 Points Higher
NASDAQ:	22 Points Lower
CRUDE OIL:	$0.44 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.75 cents, closing at $1.92 with one load traded. The barrel cheese price moved in the other direction, increasing 1.75 cents, closing at $1.86 with one load traded. Class III futures are lower because that is what the traders will follow now that barrels are not part of the weekly prices used in calculating the class prices. The dry whey price increased 0.50 cents, but was not the focus of traders, and was not enough to offset the decline of blocks. Class III futures are 27 cents lower to 3 cents higher. The butter price slipped 0.25 cent, closing at $2.5575 with 24 loads traded. Even though the price slipped, buyers are interested in purchasing what is being offered. Grade A nonfat dry milk declined a penny, closing at $1.2625 with five loads traded. Class IV futures have not yet been traded. Butter futures are 0.82 to 4.95 cents lower. Dry whey futures are 0.50 lower to 0.50 cents higher. USDA will release the April Dairy Products report this afternoon.

Fluid Milk and Cream - Western U.S. Report 23

For California, milk production is trending downward. Handlers indicate milk production is generally decreasing week-to-week. Stakeholders note that although daytime temperatures are heating up, nighttime temperatures are cool enough to hold off more dramatic decreases in week-to-week milk output. Handlers indicate May 2025 year-over-year milk production is down. Some manufacturers note production capacities are not entirely filled. Spot load offers at below Class prices are recently noted. Manufacturers describe milk volumes as comfortable. Class I demand is lighter as summer breaks at educational institutions are fast approaching. Class II, III, and IV demands are steady. 

Milk production in Arizona is lighter. Handlers note hotter temperatures are becoming more consistent. Class I, II, III, and IV demands are steady. 

For New Mexico, farm level milk output is lighter. All Class demands are steady. 

In the Pacific Northwest farm level milk output varies from steady to lighter. Some manufacturers note milk intakes are above anticipated volumes. Stakeholders indicate temperatures are beginning to heat up and this will negatively impact milk output. All Class demands are steady. 

Milk production in the mountain states of Idaho, Utah, and Colorado varies from steady to lighter. Colorado handlers convey milk output passed the seasonal peak. Idaho manufactures convey milk volumes remain more than ample for manufacturing needs. All Class manufacturing demands are steady. 

Cream volumes are seasonally decreasing, but remain sufficient enough to accommodate the needs of stakeholders. Demand is stronger. Cream multiples moved slightly lower on the bottom ends of the All-Classes range. Condensed skim milk availability and demand are steady.

Thursday Morning Dairy Market Update - Milk Futures Show Further Weakness Overnight

OPENING CALLS:

Class III Milk Futures:	4 to 8 Lower
Class IV Milk Futures:	Steady to 5 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures did not respond positively to the steady to higher cheese prices on Wednesday. Traders maintained their caution overnight, waiting to see further confirmation of support before renewing their buying interest. The milk supply is sufficient for demand, with more moving to manufacturing. This is not expected to increase inventory as the seasonal increase in demand should keep supplies from building. Milk production is expected to remain above a year ago, keeping processing facilities supplied.

CHEESE:

Cheese production is increasing with more milk being available. However, production is not expected to overwhelm the market and result in inventories remaining below a year ago. The April Dairy Products report will be released this afternoon and is expected to show stronger cheese production than a year ago, as has been the pattern so far this year.

BUTTER:

The butter price showed its resiliency with the strong gain on Wednesday. The buyers on the spot market have been serious in their desire to increase ownership for expected later demand. Further price increases are likely. Churning remains active due to sufficient cream supply, even though there is more demand from Class II products for the summer.