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.
