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 lower as the underlying cash price took a turn lower during Friday's trade, ending the week 47 cents lower on the September contract than last Friday. Class IV futures had limited volume to be able to show direction, but with butter trading higher the last two days, they most likely would be friendly futures. The USDA released the July Dairy Products Report this afternoon. A common theme across the report is higher output this July than July 2024. For Nonfat Dry Milk, output was 130 million pounds, up 7.1% from 2024. Skim Milk Powder was at 44.4 million pounds, down 14.3% from last year. Dry Whey totalled 68.3 million pounds, up 0.6% from July 2024. Ice Cream was higher in 2025; however, Sherbet and Frozen Yogurt had lower output this year.
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 decreased 7.50 cents with 13 loads traded. The weekly average price was $1.7375. Barrels decreased 8.00 cents with 1 load traded. The weekly average price was $1.7506. Dry whey decreased 0.50 cents with four loads traded. The weekly average price was 56.81 cents. In the July Dairy Products report, Cheese output was higher across all cheese products, totaling 1.21 billion pounds, which is 2.1% above July 2024 and 0.9% above June 2025.
BUTTER:
For the week, butter fell 2.25 cents with 9 loads traded. The weekly average price was $2.0156. Grade A nonfat dry milk decreased by 4 cents with five loads traded. The weekly average price was $1.2356. Butter production on the July Dairy Products Report, was reported at 180 million pounds, which is 9.8% above July 2024 but 4.4% below June 2025.
OUTSIDE MARKETS SUMMARY:
December corn closed up 1.75 cents per bushel at $4.180, November soybeans closed 6 cents lower at $10.27 and December soybean meal closed up $0.03 per ton at $284.00. December Chicago wheat closed down 0.50 cents at $5.3575. October live cattle closed down $0.975 at $235.975. October crude oil is down $1.47 per barrel at $62.01. The Dow Jones Industrial Average is down 220 points at 45,400, with the NASDAQ down 7 points at 21,700.
