OVERVIEW:
Milk futures close lower to end the week on a negative note. Some optimism had been shown earlier in the week, but that changed somewhat due to lower spot prices. Packaged fluid milk sales in July declined 1.2% from the previous year.
MILK:
Milk futures showed some strength during the week but ended with weakness, as the underlying cash closed with lower prices on Friday. Milk futures closed higher than a week ago, with Class III contracts posting better gains than Class IV. Class IV futures struggled due to the weakness of butter. This increases the potential that milk prices will have difficulty showing strength throughout the rest of the year. If the underlying cash prices cannot find support during the time of year in which buying interest is strong, there may be little to support prices later in the year. Fluid milk sales in July declined 1.2% from July 2024. Whole milk sales declined 0.4%, flavored whole milk gained 4.7%, reduced-fat milk declined 7.0%, low-fat milk declined 5.8%, fat-free skim sales gained 13.3%, flavored fat-reduced milk jumped 22.0%, buttermilk gained 1.6%, while other fluid milk product sales gained 8.2%. Organic whole milk sales declined 3.2%, organic flavored whole milk gained 4.5%, organic reduced-fat milk declined 3.1%, organic low-fat milk declined 15.6%, organic fat-free skim declined 16.2%, organic flavored fat-reduced milk fell 39.5%, while organic other fluid milk products fell 46.5%.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.17 |
| 6 Month: | $17.08 |
| 9 Month: | $17.07 |
| 12 Month: | $17.13 |
CHEESE:
For the week, blocks increased 3.50 cents with 22 loads traded. The weekly average price was $1.6525. Barrels gained 2.75 cents with no loads traded. The weekly average price was $1.6290. Dry whey decreased by 1.75 cents with eight loads traded. The weekly average price was 61.70 cents. It is unusual for no loads to have traded in barrels during the week. Buyers may not have needed barrels and showed little interest in purchasing aggressively. Sellers may not have had much to offer, indicating that supply and demand may be balanced.
BUTTER:
For the week, butter fell 11 cents with 39 loads traded. The weekly average price was $1.7910. Grade A nonfat dry milk declined 1.75 cents with 33 loads traded. The weekly average price was $1.1475. The butter price fell to the lowest level for the year and the lowest price since Oct. 11, 2025.
OUTSIDE MARKETS SUMMARY:
December corn closed up 0.25 cent per bushel at $4.2400, November soybeans closed down 12 cents at $10.2550 and December soybean meal closed down $0.70 per ton at $284. December Chicago wheat closed down 1.75 cents at $5.2250. October live cattle closed up $1.20 at $233.58. November crude oil is down $0.90 per barrel at $62.36. The Dow Jones Industrial Average is up 173 points at 46,315, with the NASDAQ up 161 points at 22,631.
