Wednesday, January 21, 2026

Wednesday Morning Dairy Market Update - Butter Strength Continues Overnight

OPENING CALLS:

Class III Milk Futures: Mixed
Class IV Milk Futures: 0 to 3 Lower
Butter Futures: 2 to 4 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures: 1 to 3 Higher
Soybean Futures: 8 to 10 Higher
Soybean Meal Futures: $0.10 to $0.35 Higher
Wheat Futures: 3 to 4 Higher

MILK:

Class III milk futures look positive in overnight trade, setting us up for a higher day. Severe cold windchills are headed to the northern half of the United States later this week with a major ice storm predicted over the Southeast. An impact on production and available supply is expected but will be short-term as there is plenty of milk available at this time.

CHEESE:

Block cheese had an unexpected day higher, gaining 4.5 cents in Tuesday's cash trade. Barrels remained unchanged, showing supply still readily available but the demand is in the retail market. Traders are still pessimistic about how much of a rebound cheese can make with many expecting to revisit previous lows.

BUTTER:

The cash price of butter also shocked the market Tuesday with a 5-cent rally to kick off the short trading week. Most expected mixed trading as supply is plentiful. Export numbers released last week show demand for higher percentage of butterfat, so while that has little effect on our spot prices, it is a positive story to trade around for futures.



Wednesday Morning Dairy Market Update - Butter Strength Continues Overnight

OPENING CALLS: Class III Milk Futures: Mixed Class IV Milk Futures: 0 to 3 Lower ...