Monday, June 30, 2025

Monday Morning Dairy Market Update - Traders Show Some Optimism in Overnight Trade

OPENING CALLS:

Class III Milk Futures: 3 to 5 Higher
Class IV Milk Futures: 3 to 5 Higher
Butter Futures: Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures had an impressive end to last week, with traders deciding the recent increase in underlying cash was sufficient to warrant aggressive buying. The strength in the equity markets may also have had an influence as this may keep and improve demand. Consumers may maintain or increase their purchases of dairy products as the year progresses. The nearby June contract will move very little as Tuesday is the last trading day for the contract. USDA will release the May Agricultural Prices report today, providing average prices used in calculating income over feed for the Dairy Margin Coverage program. The Planted Acreage and the Quarterly Grain Stocks reports will also be released.

CHEESE:

The recent increase in cheese prices may be sufficient to bring more buyers into the market, maintaining the upward trend. Buying should increase as seasonal demand improves and buyers prepare for demand later in the year. Increased milk availability for manufacturers keeps a sufficient supply of cheese available to the market.

BUTTER:

The butter price has been in a range and has not seen aggressive buyer interest recently. Bulk butter has seen better demand recently, but it has not been sufficient to trigger aggressive interest from buyers. Summer weather has had a minor impact on the cream supply, but not enough to tighten the market.




Wednesday Closing Dairy Market Update - Class III Milk Futures Ride the Wave

OVERVIEW: Class III futures were in a tug of war with initially stronger prices giving way to weakness, only to find strength later ...