Friday Closing Dairy Market Update - Butter Price Falls Substantially for the Week

OVERVIEW:

Class III futures closed mixed, with traders uncertain of price direction due to steady cheese prices. Class IV futures were steady to lower due to the weakness of the butter price. The feed and milk prices decreased in July compared to June.

MILK:

Class III milk futures closed mixed as the underlying cash price showed little direction. Futures gained slightly for the week amidst the volatility. Class IV futures were not AS fortunate, as prices declined substantially due to the weakness of the butter price. Milk futures do not follow the pattern of seasonal strength at this time of year. The USDA released the July Agricultural Prices report. The average corn price was $4.29 per bushel, down $0.18 from June. The average premium/ supreme hay price was $245.00 per ton, up $1.00 per ton from June and up $8.00 from July 2024. The All-milk price was $20.80, down $0.50 per cwt from June and down $2.00 per cwt from a year ago. The average soybean meal price will be released next week, completing the reporting of the prices used to calculate income over feed for the Dairy Margin Protection program. Other prices to take note of are the alfalfa hay average price in July, which was $173.00 per ton, down $4.00 per ton from June and down $10.00 per ton from a year ago. The soybean price was $10.20 per bushel, down $0.20 from June and down $1.10 from July 2024. The average price for a dairy cow was $3,010.00 in July compared to $2,360.00 in July 2024.

AVERAGE CLASS III PRICES:

3 Month:	$17.72
6 Month:	$17.65
9 Month:	$17.62
12 Month:	$17.64

CHEESE:

For the week, blocks increased 2.50 cents with 16 loads traded. The weekly average price was $1.7830. Barrels increased 2.00 cents with no loads traded. The weekly average price was $1.7810. Dry whey increased 1.50 cents with 10 loads traded. The weekly average price was 56.30 cents.

BUTTER:

For the week, butter fell 19.00 cents with 17 loads traded. The weekly average price was $2.1210. Grade A nonfat dry milk was unchanged at $1.26 with 21 loads traded. The weekly average price was $1.2570. Butter fell to a new low for the year, with the price falling back to the lowest level since Dec. 6, 2021.

OUTSIDE MARKETS SUMMARY:

December corn closed up 10.25 cents per bushel at $4.2025, November soybeans closed up 6.50 cents at $10.5450 and December soybean meal closed up $1.70 per ton at $289.00. December Chicago wheat closed up 5.25 cents at $5.3425. October live cattle closed up $2.73 at $239.65. October crude oil is down $0.59 per barrel at $64.01. The Dow Jones Industrial Average is down 92 points at 45,545, with the NASDAQ down 250 points at 21,456.

Friday Midday Dairy Market Summary - Butter Falls to New Low For Year

OUTSIDE MARKETS SUMMARY:

CORN:	10 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$2.00 Lower
LIVE CATTLE:	$1,72 Higher
DOW JONES:	112 Points Lower
NASDAQ:	265 Points Lower
CRUDE OIL:	$0.62 Lower

MIDDAY MARKET UPDATE:

Both block and barrel prices remained unchanged at $1.7750 and $1.7800, respectively, with no loads traded. There was an uncovered offer for a load of barrels with an unfilled bid, and 2 uncovered offers remaining for blocks at the close of spot trading. The dry whey price increased 1.50 cents, closing at 57.00 cents with 2 loads traded. Class III futures are 14 cents lower to 9 cents higher. The butter price fell back 4.00 cents to close at $2.0450, taking back the gain of Thursday and then some, moving to a new low for the year with one load traded. Grade A nonfat dry milk remained unchanged at $1.2600. Class IV futures are 14 to 20 cents lower. Butter futures are 1.52 to 4.65 cents lower. Dry whey futures are 1.25 to 2.97 cents higher. Cheese futures are 1.10 cents lower to 0.20 cent higher. USDA will release the July Agricultural Prices report Friday afternoon, providing the average prices for agricultural products for the month.

Friday Morning Dairy Market Update - Milk Futures May Find Little Price Direction

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$0.50 to $1.00 Lower
Wheat Futures:	Mixed

MILK:

There has been little change in fundamentals in the dairy industry. Milk futures may continue to chop around at the current levels with little solid direction. Milk futures being unable to trend higher during this time of year is unusual. Demand seasonally increases, resulting in increased buying interest on the spot market. So far, the buying interest has not been aggressive, with sellers continuing to offer supplies to the market. Higher milk production than last year is keeping the market supplied with milk. USDA will release the July Agricultural Prices report this afternoon, providing the average prices used in the income over feed calculation for the Dairy Margin Coverage program. The average soybean meal price is not in the report and will not be released until Tuesday.

CHEESE:

Cheese prices may have limited upside potential as supply and demand seem to be balanced. Price increases generate selling interest as plants want to move supplies rather than build inventory. Lower prices find buying interest as buyers look ahead to holiday demand. Buyers see no need to chase the market higher, and sellers see no need to hold supplies.

BUTTER:

The bounce in the butter price on Thursday was the interest of buyers to purchase butter due to the low price, and not because the market has bottomed and the price will trend higher. It may be difficult for the price to see much upside potential considering the current fundamentals. Cream supply is available, and churning is active. The supply of butter is sufficient to meet demand and reduce the volume needed to be supplemented from inventory.

Thursday Closing Livestock Market Update - Milk Remains Sufficient For Demand

OVERVIEW:

Class III futures tried to hold into positive territory but succumbed to selling pressure into the close of trading after futures were settled. Class IV futures posted gains in response to the strength of butter and nonfat dry milk.

MILK:

There are continued reports that milk output continues to decline. Nevertheless, milk production continues to remain above last year. The recent mild temperatures in parts of the nation have resulted in an improvement in production as cow comfort has improved. Overall demand remains steady for all classes of milk, with sufficient milk supply available to meet demand. All schools will be open for the year after the holiday weekend, with milk moving to deficit areas to satisfy demand. Spot milk is available, but the supply is tightening, and prices are increasing. Spot milk in the Midwest is running at class up to $2.00 above. Class III milk futures closed lower despite a valiant effort for some contracts to remain in positive territory. Class IV futures moved in the opposite direction, as strength in butter and nonfat dry milk supported higher trade.

AVERAGE CLASS III PRICES:

3 Month:	$17.76
6 Month:	$17.67
9 Month:	$17.63
12 Month:	$17.65

CHEESE:

Cheese production is sufficient for demand, limiting the volume of cheese being pulled out of inventory. That may change as demand increases, as recutters and packagers require greater volumes for gift boxes. They are seasonally aggressive buyers through September as they prepare for holiday demand. However, demand has been slower than last year, which has changed the usual price movement of the market.

BUTTER:

The bounce in the butter price was not unexpected, as low prices should increase the interest of buyers. The problem today is that buyers were not able to purchase anything despite higher prices. Trying to take advantage of lower prices sometimes does not accomplish what was initially expected. It would not be a surprise to see the butter price show further strength again tomorrow.

OUTSIDE MARKETS SUMMARY:

December corn closed up 4.00 cents per bushel at $4.1000, November soybeans closed up .50 cent at $10.4800 and December soybean meal closed down $.90 per ton at $287.30. December Chicago wheat closed up 4.75 cents at $5.2900. October live cattle closed down $2.60 at $236.93. October crude oil is up $0.45 per barrel at $64.60. The Dow Jones Industrial Average is up 72 points at 45,637, with the NASDAQ up 115 points at 21,705.

Fluid Milk and Cream - Western U.S. Report 35

California milk production is lighter. Handlers note milk output for August 2025 is down compared to July 2025, but year over year milk output continues to be up. While some manufacturers report milk intakes below anticipated volumes for August 2025, many manufacturers describe milk volumes as ample to cover production needs and fat components are at good levels to provide plenty of cream. According to the California Department of Water Resources, as of August 26, 2025, the state precipitation total for the 2024-25 Water Year is 1.19 inches below the historical mean, and the estimated total statewide reservoir storage is above the historical average. 

Farm level milk output is lighter for Arizona and New Mexico. Stakeholders indicate milk volumes are meeting manufacturing needs. 

Milk production in the Pacific Northwest varies from steady to lighter. Handlers report weakening fat components in milk output. Most manufacturers indicate milk intakes are aligned with anticipated volumes. 

Week over week milk production in the mountain states of Idaho, Utah, and Colorado varies from somewhat lighter to somewhat stronger. Idaho handlers anticipate forecasted temperatures next week to negatively impact milk production. Idaho manufacturers report plenty of milk is available to cover processing needs. Idaho stakeholders report some dairy farmers in the state are increasing their herd sizes. Class I demand is stronger throughout the West with the end of summer break. Class II demand is lighter from ice cream manufacturers, and Class III and IV demands are steady throughout the West. 

Cream loads are available throughout the region and cream demand is up. Cream multiples moved higher on the bottom end of both ranges. Condensed skim milk demand and availability are steady.

Thursday Midday Dairy Market Summary - Butter Rebounds

 OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$6.70 Lower
LIVE CATTLE:	$4.25 Lower
DOW JONES:	21 Points Higher
NASDAQ:	112 Points Higher
CRUDE OIL:	$0.29 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents, closing at $1.7750 with 3 loads traded. The barrel cheese price decreased 0.50 cent, closing at $1.78 with no loads traded. There were 3 unfilled bids for blocks and one uncovered offer. There were 2 uncovered offers remaining in barrels. The dry whey price increased 0.50 cent, closing at 55.50 cents with 3 loads traded. Traders are uncertain of what to do with Class III futures, ranging from 11 cents lower to 6 cents higher. The butter price increased 3.50 cents, closing at $2.0850 with no loads traded. Buyers wanted to take advantage of the lower price but were unable to get any loads purchased. There were 2 unfilled bids and 3 uncovered offers remaining at the close. Grade A nonfat dry milk increased 0.50 cent to close at $1.26 with one load traded. Class IV futures are 4 cents lower to 17 cents higher. Butter futures are 2.45 to 6.50 cents higher. Dry whey futures are 0.25 to 0.55 cent lower. Cheese futures are 0.40 to 1.20 cent lower.

Thursday Morning Dairy Market Update - Spot Prices May Show Further Weakness

OPENING CALLS:

Class III Milk Futures:	6 to 10 Lower
Class IV Milk Futures:	5 to 10 Lower
Butter Futures:	1 to 3 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The nearby August contract adjusted lower after the release of the weekly AMS prices. Overnight trade is down 13 cents. The August Federal Order prices will be released on Sept. 4. The September Class III contract is the only one above $18.00 through the rest of the year. Milk prices may remain under pressure if demand does not improve and milk output remains above last year. Milk production per cow continues to increase along with higher cow numbers. This will provide sufficient milk for bottling and manufacturing.

CHEESE:

The retracement of the cheese prices on Wednesday solidifies the pattern of price increases being selling opportunities. Manufacturers are willing to move supplies as quickly as possible rather than hold for higher prices that may not develop. Demand needs to improve to tighten supply and provide support for prices. The inability of prices to increase at this time of year does not bode well for the market.

BUTTER:

The butter market is not in a good position as sellers continue to offer supplies to the spot market at lower prices. Even these lower prices have not been able to stimulate any long-term aggressive buying interest. The lower bids remaining at the close of spot trading on Wednesday are concerning, as they were below $2.00, with one bid at $1.69. Buyers are holding back due to the aggressive selling.

Wednesday Closing Dairy Market Update - Milk Futures Close Under Substantial Pressure

OVERVIEW:

Milk futures took a hit with Class III and Class IV contracts down nearly the same amount. The weakness of the underlying cash price at this time of year does not bode well for milk prices the rest of the year.

MILK:

Even though milk production has decreased due to increased temperature, it remains higher than a year ago. Cooler weather recently should improve cow comfort and milk production per cow. Milk components continue to remain higher than a year ago, improving cheese yield and providing cream for Class II dairy product production. So far, milk supplies have kept pace with demand. The demand for beef on dairy calves is exceptional, with high prices being paid. Feedlots are aggressively looking for calves and, in many cases, are paying higher prices than what the futures market is showing. As long as this continues, cow numbers will remain elevated as farmers hold cows to produce milk to improve cash flow.

AVERAGE CLASS III PRICES:

3 Month:	$17.81
6 Month:	$17.72
9 Month:	$17.69
12 Month:	$17.73

CHEESE:

Spot milk prices have increased, with milk available at class to $2.00 above. Milk moving to school accounts has tightened the available supply for manufacturing, resulting in higher spot prices. Cheese production is keeping up with demand, minimizing the decrease in inventory.

BUTTER:

Butter fell to a new low for the year and the lowest price since Dec. 9, 2021. This makes it more difficult to see much upside potential for the price anytime soon. Even if the price rallies, it will begin from a very low price. It is concerning that an underlying bid was placed during spot trading at $1.69. Many times, extreme bids or offers will be where the market eventually goes.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.50 cents per bushel at $4.0600, November soybeans closed down 2.00 cents at $10.4750 and December soybean meal closed down $5.10 per ton at $288.20. December Chicago wheat closed down 7.50 cents at $5.2425. October live cattle closed up $1.33 at $239.53. October crude oil is up $0.90 per barrel at $64.15. The Dow Jones Industrial Average is up 147 points at 45,565, with the NASDAQ up 46 points at 21,590.

Wednesday Midday Livestock Market Summary - Butter Price Fell Substantially

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	1 Lower
SOYBEAN MEAL:	$4.40 Lower
LIVE CATTLE:	$1.45 Higher
DOW JONES:	1657 Points Lower
NASDAQ:	805 Points Lower
CRUDE OIL:	$0.68 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 5.00 cents, closing at $1.76 with 3 loads traded. The barrel cheese price declined 1.50 cents, closing at $1.7650 with no loads traded. There were 2 unfilled bids for loads of blocks and one uncovered offer. An unfilled bid and uncovered offer remained in barrels. The dry whey price declined 2 cents, closing at 55.00 cents. Class III futures are 57 cents lower to 5 cents higher. April and later contracts show the strength, with the nearby October contract showing the greatest pressure. The butter price fell 13.50 cents, closing at $2.05 with 12 loads traded. There were 7 unfilled bids and 10 uncovered offers remaining at the close. The unfilled bids were below the market, with the lowest bid at $1.69. This is the lowest price since Dec. 9, 2021. Grade A nonfat dry milk gained 0.25 cent to close at $1.2550 with 14 loads traded. Class IV futures are 10-55 cents lower. Butter futures are 6.25 to 7.50 cents lower. Dry whey futures are 1.00 to 1.50 cents lower. Cheese futures are steady to 4.30 cents lower.

Wednesday Morning Dairy Market Update - Class III Futures Show Weakness Overnight

 OPENING CALLS:

Class III Milk Futures:	5 to 10 Lower
Class IV Milk Futures:	5 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The strength in the Class III milk futures may be short-lived if overnight trade is any indication of price direction. Higher futures prices may increase the interest of traders to sell into the market for potential weakness, as the market is expected to remain choppy. Class IV futures are expected to show further weakness due to the potential for lower butter prices. This may be a pattern moving through the rest of the year as milk production remains higher than a year ago. Buyers of dairy products have little concern over supplies and will purchase as needed. Lower prices will increase the buying interest for later demand.

CHEESE:

Cheese production is steady despite increased volumes of milk moving to bottling for school accounts. Cheese demand is steady, with an ample supply available to the market. This may keep cheese prices in a range over the next two months when demand is stronger. It may be difficult for the market to trend higher.

BUTTER:

Time is running out for the butter price to increase seasonally. Even if demand improves, it is unlikely the price will move back to the previous high of $2.62 on July 7. More cream is becoming available for churning. Increased butter production will limit the seasonal decline of inventory.

Tuesday Closing Dairy Market Update - Class IV Futures Move Below Class III Futures

OVERVIEW:

Class III and IV with futures diverging with the September, October, and November Class IV contracts below Class III. The butter price fell below the low on Friday and moved to the lowest price for the year.

MILK:

Class III milk prices showed some hope, but extended gains need to be seen before traders will turn more aggressive buyers. Much of the trading activity is confined to scalping the market to hopefully make a profit. Most traders are not taking long-term positions due to market choppiness. The September, October, and November Class IV contracts are below Class III futures, providing a negative outlook for Class IV milk. Price increases in underlying cash will reach a level that will bring sellers to the market as they will move more supply. The current Class III futures prices are enough to keep farms holding onto cows and pushing more milk production for cash flow. Plentiful feed supplies at lower prices will keep the income over feed price at a good level. The USDA will release the July Agricultural Prices report on Friday, which is expected to continue to show a strong income over feed.

AVERAGE CLASS III PRICES:

3 Month:	$18.09
6 Month:	$17.97
9 Month:	$17.86
12 Month:	$17.85

CHEESE:

Spot cheese prices have developed a sideways pattern with a bias to the downside when you look at the daily price charts. The supply of cheese is not overwhelming the market, and demand is good, but it is not enough to tighten the supply of cheese. Inventory is slightly higher than a year ago and may remain that way through the rest of the year. Higher milk production will leave sufficient milk for manufacturing demand.

BUTTER:

The potential of higher butter prices this year is becoming dimmer by the day as the spot price moved to the lowest level of the year and back to the lowest level since December 21, 2021. Butter production will slowly rise as more cream is available for churning as the year progresses.

OUTSIDE MARKETS SUMMARY:

December corn closed down 2.75 cents per bushel at $4.0950, November soybeans closed up 1.75 cents at $10.4950 and December soybean meal closed up $2.40 per ton at $293.30. December Chicago wheat closed up 2.00 cents at $5.3175. October live cattle closed up $1.38 at $238.20. October crude oil is down $1.47 per barrel at $63.33. The Dow Jones Industrial Average is up 136 points at 45,418, with the NASDAQ up 95 points at 21,544.

Tuesday Midday Dairy Market Summary - Butter Falls To a New Low For The Year

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$2.20 Higher
LIVE CATTLE:	$1.87 Higher
DOW JONES:	6 Points Higher
NASDAQ:	25 Points Higher
CRUDE OIL:	$1.46 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents, closing at $1.81 with one load traded. The barrel price increased 4.00 cents, closing at $1.80 with no loads traded. An uncovered offer remained for a load of barrels with two unfilled bids for barrels and an uncovered offer for blocks. The dry whey price remained unchanged at 57.00 cents with no loads traded. Class III futures are 1-39 cents higher. The butter price declined 5.50 cents, closing at a new low for the year of $2.1850 with one load traded. There were eight unfilled bids and nine uncovered offers remaining at the close. The new low in butter brings the price spread closer together, and is the nearest it has been in over two years. Grade A nonfat dry milk price decreased 0.50 cent, closing at $1.2525 with one load traded. Class IV futures are 15-21 cents lower. Butter futures are 0.26 0 6.35 cents lower. Dry whey futures are 0.50-1.22 cents higher. Cheese futures are 0.20 cent lower to 3.90 cents higher.

Tuesday Morning Dairy Market Update - Underlying Cash Strength May Be Limited

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	4 to 7 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	Mixed

MILK:

The sufficient milk supply is keeping demand satisfied and upside price potential limited. Increased demand for fluid milk to supply the school systems has reduced the amount of milk available for manufacturing, but it will not create a shortage. Milk production is higher than a year ago, leaving a sufficient supply available. Demand from buyers should increase prices seasonally, but the current fundamentals of supply and demand may limit the upside potential of prices. There has always been a strong correlation between milk prices to corn prices, and that again seems to be the case. With the expectation of a large corn crop and lower prices, higher milk prices may not develop.

CHEESE:

Cheese prices in 2024 increased substantially throughout August and then peaked in early September. History certainly has not been repeated this year. Once the strong buying was completed by packagers and recutters in preparation for the holidays last year, prices fell back substantially. Cheese prices have been unable to move above $2.00 so far this year.

BUTTER:

The butter supply is sufficient for demand, leaving little reason for buyers to be aggressive in the spot market. Churning is active, and slowly increasing cream supplies will keep the market supplied. Inventory should decrease as demand improves, but higher production will limit the amount of butter moving out of storage.

Monday Closing Dairy Market Update - Milk Futures Close Unchanged To Moderately Higher

OVERVIEW:

Class III closed higher but could not hold the highs of the day in nearby contracts. The strength of cheese, butter, and dry whey. It is difficult to determine whether the lows of Friday established a bottom in the market.

MILK:

Class III milk futures closed higher but without conviction. Traders covered their short positions from last week, taking any profits that might have been had just in case prices trend higher in the near term due to renewed buying interest at the lower prices. Class IV futures close mixed. Increasing milk production compared to a year ago and cheese inventories remaining close to last year do not bode well for much upside price potential. Dairy cattle slaughter in July totaled 225,800 head. This was 37.000 more than June and 1,000 less than June 2024. The June-to-July slaughter was nearly identical to last year. In June 2024, dairy cattle slaughter totaled 186,400 head, with July slaughter increasing 39,500, totaling 225,900 head. This was somewhat of a surprise due to the increase in cow numbers in July of 10,000 head.

AVERAGE CLASS III PRICES:

3 Month:	$17.91
6 Month:	$17.82
9 Month:	$17.75
12 Month:	$17.76

CHEESE:

Greater volumes of milk have been moving to bottling plants for school accounts. However, there is sufficient milk for manufacturing needs, keeping supplies available for buyers. Demand is good but has not increased as much as usual and anticipated. This could be a limiting factor in the potential for prices as the year progresses and higher demand generally unfolds.

BUTTER:

Buyers in the cash market were a bit more aggressive, taking advantage of the lower price that had recently developed. It is not certain that the price has found solid support, but low prices should cure low prices. The July butter inventory was 6.0% below July 2024, but that has not resulted in a tight market due to demand being slower than usual at this time of year. The butter price at the end of August 2023 moved sharply higher in September, reaching a record high on October 6. We cannot expect a similar move this year, as fundamentals are different and supplies are readily available.

OUTSIDE MARKETS SUMMARY:

December corn closed up .75 cent per bushel at $4.1225, November soybeans closed down 10.75 cents at $10.4775 and December soybean meal closed down $.60 per ton at $290.90. December Chicago wheat closed up 2.50 cents at $5.2975. October live cattle closed down $1.05 at $236.83. October crude oil is up $1.12 per barrel at $64.78. The Dow Jones Industrial Average is down 349 points at 45,282, with the NASDAQ down 47 points at 21,449.

Monday Midday Dairy Market Summary - Cheese and Butter Prices Bounce

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	12 Lower
SOYBEAN MEAL:	$1.10 Lower
LIVE CATTLE:	$0.22 Lower
DOW JONES:	266 Points Lower
NASDAQ:	34 Points Higher
CRUDE OIL:	$1.29 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 4.50 cents, closing at $1.7950 with nine loads traded. The barrel cheese price remained unchanged at $1.76 with no loads traded. There were two unfilled bids for loads of blocks and one uncovered offer for a load of barrels remaining at the close. The dry whey price increased 1.50 cents, closing at 57.00 cents with one load traded. Class III futures are steady to 24 cents higher, with October showing the greatest strength. The butter price increased 0.50 cents, closing at $2.24 with three loads traded. Grade A non-fat dry milk slipped 0.25 cent to close at $1.2575 with five loads traded. Class IV futures are 10 to 13 cents higher. Butter futures are 1.12 to 4.20 cents higher. Dry whey futures are 0.40 to 1.90 cents higher. Cheese futures are 0.50 cent lower to 1.70 cent higher.

Monday Morning Dairy Market Update - Light Trading Activity Expected

OPENING CALLS:

Class III Milk Futures:	Steady to 5 Lower
Class IV Milk Futures:	4 to 6 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

It may be difficult for traders to buy into milk futures before spot trading, as the negative activity on Friday in the cash markets will leave traders cautious. The July Cold Storage report showed a decrease in inventory, but lighter than usual, leaving the market in a neutral position. One thing we see is that milk production may not slow down anytime soon, and cow numbers may continue to increase. Less expensive feed prices will keep farmers focused on milk output to improve cash flow.

CHEESE:

It is uncertain whether the lower cheese prices on Friday will generate increased buying interest or sufficient supplies will leave buyers less aggressive and purchasing on further weakness. The inability of spot prices to trend higher during this time of year does not bode well for the upside potential of the market.

BUTTER:

The spot butter price moved back to multi-year lows on Friday, which may indicate further weakness as buyers are not aggressive and sellers continue to offer supplies to the market. Manufacturers do not want to build plant inventories and buyers do not see the need to be aggressive.

Friday Closing Dairy Market Update - Butter and Cheese Inventories Decline In July

OVERVIEW:

Milk futures closed lower in response to the bearish milk production report and lower spot prices. The July Cold Storage report showed a good decline in butter inventory and a slight decline in cheese inventory.

MILK:

It was not long ago that September Class III futures were at $19.00. The close of today has September at $18.26. Futures have declined in the past three days as traders anticipated weakness and then reacted to it. Class IV futures followed a similar pattern, with futures declining over the past four days. More milk has been moving to bottling for school accounts, but that has had little impact on the market due to milk production running significantly higher than last year. It does not appear that this will change anytime soon. Farms are holding onto cows that normally might have been culled and are finding out that another lactation is showing better milk production in some cases, and the cow is able to have another crossbred calf that brings a substantial amount of money. Another added benefit is that the cow might be paid for rather than replacing it with an expensive heifer. The price of the beef-on-dairy calf sold after it is a few days old may hold the values of as much as 5,000 pounds of milk at $20.00 per cwt. Cows are not being culled as much to generate extra income anymore.

AVERAGE CLASS III PRICES:

3 Month:	$17.80
6 Month:	$17.72
9 Month:	$17.66
12 Month:	$17.67

CHEESE:

The July Cold Storage report showed American cheese inventory decreasing by 2.9 million pounds, totaling 808.2 million pounds, and 2% above July 2024. The inventory of Swiss cheese decreased by 503,000 pounds to a total of 22.5 million pounds, and 1% above a year ago. Other cheese inventories increased 248,000 pounds and were 1% below a year ago. This resulted in total cheese inventory declining by 3.2 million pounds and is 1% above July 2024. For the week, blocks declined 2.50 cents with 18 loads traded. Barrels declined 2.00 cents with four loads traded. Dry whey declined by 4.50 cents with 15 loads traded.

BUTTER:

The inventory of butter declined by 24.0 million pounds to 331.4 million pounds, down 6% from July 2024. This was not a large decline, but a decline. Lower stocks than a year ago still have not been able to support the market. For the week, butter declined 6.50 cents with 16 loads traded. Grade A nonfat dry milk declined a penny with 28 loads traded.

OUTSIDE MARKETS SUMMARY:

December corn closed down .25 cent per bushel at $4.1150, November soybeans closed up 2.50 cents at $10.5850 and December soybean meal closed down $2.70 per ton at $291.50. December Chicago wheat closed down 2.50 cents at $5.2725. October live cattle closed up $3.15 at $237.88. October crude oil is up $0.14 per barrel at $63.66. The Dow Jones Industrial Average is up 853 points at 45,632, with the NASDAQ up 396 points at 21,497.

Friday Midday Dairy Market Summary - Butter Falls to Multi-Year Low

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$0.70 Lower
LIVE CATTLE:	$1.32 Higher
DOW JONES:	923 Points Higher
NASDAQ:	426 Points Higher
CRUDE OIL:	$0.20 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 3.00 cents, closing at $1.75 with six loads traded. The barrel cheese price declined 5.00 cents, closing at $1.76 with no loads traded. Only uncovered offers remained for blocks and barrels at the close. The dry whey price declined 1.50 cents, closing at 55.50 cents with three loads traded. Class III futures are one cent higher to 22 cents lower. The only gain is seen in the August contract. The butter price slipped 0.50 cent, closing at $3.2350 with no loads traded. This moves the price to the lowest level since Dec. 22, 2021. Grade A nonfat dry milk remained unchanged at $1.26 with six loads traded. Class IV futures have not yet been traded. Butter futures are 1.75 to 5.50 cents lower. Dry whey futures are 0.15 to 1.40 cents lower. Cheese futures are steady to 1.50 cents lower. USDA will release the July Cold Storage report this afternoon.

Friday Morning Dairy Market Update - USDA Will Release the July Cold Storage Report

OPENING CALLS:

Class III Milk Futures:	10 to 20 Lower
Class IV Milk Futures:	5 to 12 Lower
Butter Futures:	2 to 3 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The July Milk Production report was bearish to the market and dims the potential for milk prices the rest of the year. U.S. milk production being up 3.4% indicates there will be sufficient milk supplies for both bottling and manufacturing. Any price increases may be temporary unless demand improves dramatically, or some other unforeseen event takes place that would tighten the milk supply. However, traders only need to look back at last year and the expected bullish impact that the bird flu was expected to have on milk production, which did not materialize. It will take much more bullish news to generate higher milk prices anytime soon. Culling remains slow, and cow numbers continue to increase, adding more milk to the market.

CHEESE:

The fall of the block cheese price on Thursday was unexpected, but again, indicated how prices can fall faster than they gain. The supply of cheese is not burdensome, but buyers see no need to buy aggressively for the upcoming demand. Cheese inventory is similar to what it was a year ago, and supplies are expected to have increased slightly in July. This may keep prices rangebound.

BUTTER:

If the butter price slips further, it will move to the lowest level since June 2023. The market is not following a seasonal pattern where buying interest is stronger in preparation for holiday demand. Butter inventory is lower than a year ago, but supplies are sufficient due to steady to lower demand from retail and food services. The price is not expected to see much upside potential the rest of the year. The July Cold Storage report may show a slight increase in butter inventory from June.

Thursday Closing Dairy Market Update - July Milk Production Jumps 3.4%

OVERVIEW:

Milk futures sold off heavily in response to the weakness of the underlying cash. There was also some caution over the milk production report that was to be released. The report showed July milk production went up 3.4% over July 2024, putting further pressure on the market in late afternoon trading.

MILK:

The milk production report likely solidified the reality that milk prices may have limited upside potential throughout the rest of the year. Milk production in the top 24 states was 3.5% above July 2024. July production totaled 18.8 billion pounds. Milk production per cow jumped 36 pounds from a year ago, averaging 2,081 pounds. Cow numbers increased by 8,000 head from June, totaling 9.040 million head. This is 154,000 more than July 2024. Milk production in the U.S. totaled 19.6 billion pounds, up 3.4% from July 2024. Milk production per cow jumped 34 pounds to 2,063. Cow numbers increased by 10,000 head from June, with the total milk cow herd at 9.485 million head. This is 159,000 more than a year ago. The nation's dairy herd is the largest it has been since July 2021. This is the largest percentage increase so far this year, and at a time when milk production decreases due to hot weather. This is a bearish report, indicating that milk production will remain strong, keeping a sufficient milk supply available for demand.

AVERAGE CLASS III PRICES:

3 Month:	$17.78
6 Month:	$17.73
9 Month:	$17.68
12 Month:	$17.71

CHEESE:

The block cheese price again fell faster than it increased and nearly eliminated the gains realized since the previous decline. Substantially higher milk production than a year ago in July will make it more difficult for prices to see much upside price potential. Cheese buyers may be less willing to purchase supplies aggressively, as there should be sufficient supply for demand. The July Cold Storage report will be released on Friday and is expected to show further increases in inventory.

BUTTER:

The fundamentals of butter have been more bearish than cheese, and the milk production report will maintain that bearishness. Ice cream production is slowing, and greater volumes of milk are being standardized for school accounts, leaving more cream available for churning. The July Cold Storage report is expected to show inventory below a year ago, but an increase in supply from June.

OUTSIDE MARKETS SUMMARY:

December corn closed up 7.75 cents per bushel at $4.1175, November soybeans closed up 20.00 cents at $10.5600 and December soybean meal closed down $3.00 per ton at $294.20. December Chicago wheat closed up 1.50 cents at $5.2975. October live cattle closed down $0.13 at $234.73. October crude oil is up $0.81 per barrel at $63.52. The Dow Jones Industrial Average is down 153 points at 44,786, with the NASDAQ down 73 points at 21,100.

July Milk Production in the United States up 3.4 Percent

July Milk Production up 3.5 Percent        

Milk production in the 24 major States during July totaled 18.8 billion pounds, up 3.5 percent from July 2024. June revised production, at 18.5 billion pounds, was up 3.4 percent from June 2024. The June revision represented an increase of 5 million pounds or less than 0.1 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,081 pounds for July, 36 pounds above July 2024.   The number of milk cows on farms in the 24 major States was 9.04 million head, 154,000 head more than July 2024, and 8,000 head more than June 2025.   

July Milk Production in the United States up 3.4 Percent  

Milk production in the United States during July totaled 19.6 billion pounds, up 3.4 percent from July 2024.  Production per cow in the United States averaged 2,063 pounds for July, 34 pounds above July 2024.  The number of milk cows on farms in the United States was 9.49 million head, 159,000 head more than July 2024, and 10,000 head more than June 2025. 

Thursday Midday Dairy Market Summary - Block Cheese Falls Back

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	19 Higher
SOYBEAN MEAL:	$2.40 Higher
LIVE CATTLE:	$0.40 Higher
DOW JONES:	158 Points Lower
NASDAQ:	88 Points Lower
CRUDE OIL:	$0.87 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.75 cents, closing at $1.8675 with three loads traded. The barrel cheese price remained unchanged at $1.81 for the second day, with one load traded. There were only two unfilled bids for loads of blocks remaining at the close of spot trading. Buyers are interested in buying, but not aggressively. The dry whey price decreased 2.25 cents, closing at 56.75 cents with seven loads traded. Class III futures are 1 to 20 cents lower. The butter price decreased by 3.00 cents, closing at $2.29 with five loads traded. One unfilled bid remained at the close of spot trading with 13 uncovered offers. Grade A nonfat dry milk decreased 0.75 cent to close at $1.2575 with five loads traded. Class IV futures are 16 to 17 cents lower. Butter futures are 3.12 cents lower to 0.07 cent higher. Dry whey futures are 1.00 cents lower to 0.27 cent higher.

Fluid Milk and Cream - Western U.S. Report 34

California milk production is lightening. Handlers convey hotter summer temperatures are taking hold and negatively impacting milk output. However, some manufacturers note milk intakes are above anticipated volumes. Handlers report July 2025 year over year milk production was up and August 2025 year over year milk production is also trending upward. Central Valley processors report balanced milk volumes, but downtime from equipment damage is expected to bring milk output closer to processing capacities.  

Milk production in Arizona is lighter. Handlers indicate August 2025 year over year milk production is trending upward. 

New Mexico farm level milk output is lighter. 

Pacific Northwest handlers indicate week over week milk production is generally steady, but fat components in milk output are decreasing. Manufacturers convey milk intakes are at anticipated volumes. 

Week over week milk production in the mountain states of Idaho, Utah, and Colorado are mixed. Colorado handlers convey milk decreases are milder than anticipated and year over year milk output is up this summer. Idaho stakeholders note spot milk volumes are ample enough to accommodate manufacturing needs. Class I demand varies from steady to stronger as some educational institutions are beginning the new school year now. Class II demand varies from steady to lighter throughout the region. Class III and IV demands are steady throughout the region. 

Cream availability is somewhat tighter and demand is steady. Cream multiples are unchanged this week. Condensed skim milk demand and availability are steady.

Thursday Morning Dairy Market Update - USDA to Release the July Milk Production Report

OPENING CALLS:

Class III Milk Futures:	4 to 8 Lower
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Traders indicate they believe cheese prices may be near price resistance. Class III milk futures were lower despite stronger block cheese and steady barrel prices on Wednesday. Some of the pressure may be due to the expectation that milk production will continue to remain significantly above a year ago. I estimate July milk production to be 2.9% above a year ago, with cow numbers to be 4,000 head more than in June. Less expensive feed prices and high milk replacement prices should keep farmers holding onto cows. If milk output in July was strong, the potential for continued strength the rest of the year is certain.

CHEESE:

The block cheese price is 1.25 cents from the previous high of last week. The price may have difficulty moving above that level as sellers may take advantage of the higher price to move more cheese to the market. However, seasonal buying could provide support and push the price back to the high of early June.

BUTTER:

The butter price continues to struggle and could retest the low of 2.28 set on Aug. 14. A break below that level would move the price to the lowest level since April 29. The price has been moving counter-seasonally due to continued strong butter production throughout the year. The July Cold Storage report will be released on Friday and is expected to show increased inventory from July 2024.

Wednesday Closing Dairy Market Update - Global Dairy Trade Average Price Declined 0.3%

OVERVIEW:

Both Class III and IV futures posted similar losses, with most contracts showing double-digit losses. Traders still hold an overall bearishness in the market and continue to remain cautious.

MILK:

There is a tug of war between the potential for higher prices seasonally and the overall choppiness and times of weakness in the market. Higher milk output than a year ago may keep the upside price potential limited moving through the last half of the year. The USDA will release the July Milk Production report on Thursday. It is expected to show strong milk production relative to a year ago. I estimate milk production to be 2.9% above a year ago, with cow numbers up 4,000 head from June.

The Global Dairy Trade auction took place on Tuesday, resulting in the trade-weighted average declining 0.3% from the previous event. There were 36,553 metric tons of dairy products sold at an average price of $4,291 per metric ton. Anhydrous milk fat increased 0.1% to $7,078 per metric ton or $3.21 per pound. Butter decreased 1.0% to 7,144 per metric ton or $3.24 per pound. Cheddar cheese decreased 0.5% to $4,548 per metric ton or $2.06 per pound. Mozzarella decreased 2.7% to $4,447 per metric ton or $2.20 per pound. Skim milk powder decreased 1.8% to $2,756 per metric ton or $1.25 per pound. Whole milk powder increased 0.3% to $4,036 per metric ton or $1.83 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$18.01
6 Month:	$17.91
9 Month:	$17.84
12 Month:	$17.85

CHEESE:

Cheese output is steady to lighter in some cases due to lower milk production, due to weather impact, and more fluid milk moving to deficit areas for school system needs. Periods of cooler weather have resulted in slight increases in production. Spot milk availability has tightened in some areas, with prices ranging from $3.00 under to $2.00 over class. Cheese contracts and immediate orders are being filled without difficulty.

BUTTER:

The butter price is headed down to the previous low of $2.28. If it moves below that level, it will move back to the lowest level since April 29. It appears the butter price may have limited upside potential throughout the rest of the year if the current fundamentals persist. There are reports of butter production picking up as cream becomes available.

OUTSIDE MARKETS SUMMARY:

December corn closed up .75 cent per bushel at $4.0400, November soybeans closed up 2.25 cents at $10.3600 and December soybean meal closed up $1.30 per ton at $297.20. December Chicago wheat closed up 7.00 cents at $5.2825. October live cattle closed up $3.50 at $234.85. October crude oil is up $0.94 per barrel at $62.71. The Dow Jones Industrial Average is up 16 points at 44,938, with the NASDAQ down 142 points at 21,173.

Wednesday Midday Dairy Market Summary - Butter Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$2.27 Higher
LIVE CATTLE:	$0.90 Higher
DOW JONES:	8 Points Higher
NASDAQ:	169 Points Lower
CRUDE OIL:	$5.11 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1.75 cents, closing at $1.8675 with three loads traded. The barrel cheese price remained unchanged at $1.81 for the second day, with one load traded. There were only two unfilled bids for loads of blocks remaining at the close of spot trading. Buyers are interested in buying, but not aggressively. The dry whey price decreased 2.25 cents, closing at 56.75 cents with seven loads traded. Class III futures are 1 to 20 cents lower. The butter price decreased by 3.00 cents, closing at $2.29 with five loads traded. One unfilled bid remained at the close of spot trading with 13 uncovered offers. Grade A nonfat dry milk decreased 0.75 cent to close at $1.2575 with five loads traded. Class IV futures are 16 to 17 cents lower. Butter futures are 3.12 cents lower to 0.07 cent higher. Dry whey futures are 1.00 cents lower to 0.27 cent higher.