GENERAL OVERVIEW:
Milk futures closed under pressure despite steady to higher spot prices. Traders seem to have moved into the realm of creating more volatility and contrary trading. Nonfat dry milk continues to see exceptional strength.
MILK:
It has been an exceptional week for milk futures despite the underlying spot prices generally increasing throughout the week. It seems that traders have found that trading contrary to the movement of the underlying cash can reap significant benefits. Futures have been pushed outside the correlation to the movement of spot prices. This volatility increases the potential to scalp the market for greater profits. Higher futures prices have improved the outlook for milk prices for the year. Contracts have returned a good amount of gains realized this week, even with the decline today.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.57 |
| 6 Month: | $17.09 |
| 9 Month: | $17.37 |
| 12 Month: | $17.41 |
CHEESE:
For the week, blocks jumped 11.00 cents with 51 loads traded. The weekly average price is $1.4315. Barels increased 5.00 cents with no loads traded. The weekly average price is $1.4240. Dry whey declined 2.00 cents with three loads traded. The weekly average price is 72.60 cents. The block cheese price increased each day this week as buyers remained aggressive and willing to purchase at higher prices.
BUTTER:
For the week, the butter price jumped 15.00 cents with 21 loads traded. The weekly average price is $1.6375. The price moved to the highest since Oct. 3, 2025. The Grade A nonfat dry milk price jumped 18 cents with three loads traded. The weekly average price is $1.5475. The last time the price had a similar move was in 2012. This is the highest price since July 29, 2022.
OUTSIDE MARKETS SUMMARY:
March corn closed down 4.75 cents per bushel at $4.3025, March soybeans closed up 3.00 cents at $11.1525, and March soybean meal closed up $.40 per ton at $303.60. March Chicago wheat closed down 5.50 cents at $5.2975. April live cattle closed up $1.65 at $237.25. March crude oil is up $0.22 per barrel at $63.51. The Dow Jones Industrial Average is up 1,207 points at 50,116, with the NASDAQ up 491 points at 23,031.
