MILK:
Traders held Class III futures rather consistently throughout much of the day, with pressure on the nearby months and higher later months. However, as the afternoon progressed, further pressure was put on the nearby months as traders who had anticipated strength in the underlying cash decided to liquidate their positions. The feeling that the upside price potential is limited seems to have increased. Class IV futures increased with double-digit gains as the butter price might be trending higher. The trading volume was very light, with August showing the most activity, and only 231 contracts traded. July had 166 contracts traded, with all the other months showing fewer than 100 contracts. It has been quite some time since trading activity has been that light. Crop conditions remain good with corn showing 74% good/excellent compared to 68% a year ago. The soybean crop is at 66% good/excellent compared to 68% a year ago. Spring wheat is 50% good/excellent compared to 75% a year ago.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.06 |
| 6 Month: | $18.48 |
| 9 Month: | $18.36 |
| 12 Month: | $18.30 |
CHEESE:
The market has little to get excited over. There is sufficient milk available for manufacturing. Spot milk prices in the Central region remained as much as $8.00 below class compared to a year ago, when spot milk was about $2.00 below. Sellers continue to offer supplies to the market rather than storing them and risking lower prices later in the year.
BUTTER:
The butter price increasing to the level last seen on November 15, 2025, may receive greater attention from buyers. Buyers may step up more aggressively to purchase supplies to attempt to avoid further price increases as the summer progresses. The trend seems similar to 2023, when the price increased this time of year and moved substantially higher into October.
Outside Markets Summary:
December corn closed down 16.25 cents per bushel at $4.2075, November soybeans closed down 28.50 cents at $10.2075 and December soybean meal closed down $6.30 per ton at $285.90. September Chicago wheat closed down 8.25 cents at $5.4850. August live cattle closed up $1.85 at $215.90. August crude oil is up $0.93 per barrel at $67.93. The Dow Jones Industrial Average is down 422 points at 44,406 with the NASDAQ down 189 points at 20,413.
