Tuesday Closing Dairy Market Update - Lab-grown Dairy Products Banned in Mississippi

GENERAL OVERVIEW:

Class III futures were mostly higher while Class IV futures posted double-digit losses in all traded contracts. Mississippi made the first move to ban the manufacture and sale of lab-grown dairy products. The February income over feed prices is $8.46.

MILK:

The state of Mississippi was the first to step out and prohibit the manufacture and sale of lab-grown dairy products. The proposed legislation would classify lab-grown dairy separately from conventional dairy products and make it illegal to manufacture, market or sell the products in the state. Previously, Mississippi banned lab-grown meat along with Florida and Alabama. This is a controversial subject and one that will be a topic of many discussions. The February soybean meal price was the final price needed to calculate income over feed for the Dairy Margin Coverage program. The average price was $312.38 per ton, up $13.13 from January. This puts the income over feed at $8.46. Class III futures were mostly higher, riding on the strength of cheese prices. Class IV futures posted double-digit losses in those contracts that were traded.

AVERAGE CLASS III PRICES:

3 Month:	$15.24
6 Month:	$15.82
9 Month:	$16.37
12 Month:	$16.67

CHEESE:

The bounce in cheese prices provided the confidence for traders to support milk futures. However, the upside price potential may be limited as the spring flush increases the milk supply for manufacturing.

BUTTER:

The decline of the butter price was surprising, as demand is good and buyers are readily purchasing what is being offered in the spot market. The difference is that sellers are aggressively moving butter even at lower prices. As long as sufficient butter is available to the market, buyers see little reason to be aggressive. Cream supplies are lower due to an increase in ice cream production, but that may not be sufficient to tighten supply.

OUTSIDE MARKETS SUMMARY:

May corn closed up 2.00 cents per bushel at $4.5775, May soybeans closed up 11.25 cents at $11.7100, and May soybean meal closed up $1.50 per ton at $316.40. May Chicago wheat closed up 9.25 cents at $6.1625. June live cattle closed up $3.08 at $243.28. May crude oil is down $1.27 per barrel at $101.61. The Dow Jones Industrial Average is up 1,125 points at 46,342, with the NASDAQ up 796 points at 21,591.

Tuesday Midday Dairy Market Summary - Spot Butter Price Falls

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	14 Higher
SOYBEAN MEAL:	$1.80 Higher
LIVE CATTLE:	$2.55 Higher
DOW JONES:	832 Points Higher
NASDAQ:	662 Points Higher
CRUDE OIL:	$0.85 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1.75 cents to close at $1.6150 with no loads traded. The barrel cheese price increased 2.75 cents, closing at $1.5925 with no loads traded. No sellers showed up during spot trading. The dry whey price remained steady at 69.00 cents with no loads traded. Class III futures are 8 cents lower to 19 cents higher. The butter price decreased 5.00, closing at $1.7750 with 20 loads traded. This price matches the low from March 23. Grade A nonfat dry milk increased a penny, regaining the recent loss and moving to a new high. Class IV futures are 15 to 27 cents lower. Butter futures are 1.22 to 4.50 cents lower. Dry whey futures are steady to 0.22 cent lower. Cheese futures are 0.20 to 1.20 cents higher. The average soybean meal price for February was $312.38 per ton. This was an increase of $13.13 per ton. The income of feed price was $8.48, resulting in a $1.04 per cst payment under the Dairy Margin Coverage program.

Tuesday Morning Dairy Market Update - Limited Overnight Volatility

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The weakness of milk futures on Monday may have been indicative of what could take place this week. Futures adjusted to the underlying cash, with minor strength in block cheese and nonfat dry milk having no influence on price support. Milk production is improving seasonally as the spring flush gears up. This is not expected to overwhelm the market, but will keep sufficient milk available for demand. The potential for higher milk prices as the year progresses will keep farmers pushing milk production to take advantage of the higher prices. The demand for beef-on-dairy calves continues to increase, adding a sufficient income to the bottom line of the operations. Tuesday is the last day to trade March dairy futures and options.

CHEESE:

The block cheese price has decreased to the uptrend line and will need to regain the recent loss, or the price could move into a sideways pattern. The latter is likely as cheese production increases due to increasing milk receipts at the plant level.

BUTTER:

The butter price may continue to chop sideways with buyers and sellers content to take care of business at the current level. Easter demand has been filled and regular demand will need to increase to renew an uptrend in the price. Manufacturers continue to offer supplies to the spot market, satisfying buyer demand.

Monday Closing Dairy Market Update - February Agricultural Prices Increase

GENERAL OVERVIEW:

Milk futures closed lower with more weakness seen in Class IV futures. The price swings in Class III futures were significant in the closer months as overnight trade was active. The February Agricultural Prices report was released and showed an increase in all prices used in the calculation of income over feed.

MILK:

Class III futures had quite the price swings in the closer months, beginning with substantially higher trade in the overnight session. The March contract had a range of $0.91. This volatility has never before happened in the nearby contract, with only two days of trading remaining. The April contract moved in a $0.70 range. The May contract moved in a $0.41 range. In the end, most contracts closed lower. Class IV futures were under pressure despite a steady butter price and an increase in nonfat dry milk. The February Agricultural Prices report showed an average corn price of $4.11 per bushel, up $0.01 from January but down $0.47 from February 2025. The Supreme/ premium hay price was $229.00, an increase of $3.00 per ton from January and down $14.00 per ton from February 2025. The All-milk price was $18.30 per cwt. This was an increase of $0.80 per cwt from January, but down $5.30 per cwt from February 2025. The average soybean meal price will be released on Tuesday by the FSA to provide the prices needed to calculate income over feed for the Dairy Margin Coverage program. Other prices to take note of are the alfalfa hay price for February, which was $152 per ton, an increase of $3.00 per ton from January, and was $2.00 per ton lower than a year ago. The average soybean meal price was $10.60 per bushel, up $0.30 from January and up $0.40 from February 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.02
6 Month:	$17.77
9 Month:	$18.10
12 Month:	$18.01

CHEESE:

The increase in the block cheese price had little influence on Class III futures. There is uncertainty about the upside price potential as milk output increases and cheese supplies remain sufficient for demand.

BUTTER:

Butter output is higher than a year ago, but inventory has not been able to reduce the deficit of a year ago. Strong demand is keeping inventory from building significantly. This will support the market, but increased production may limit the upside price potential.

OUTSIDE MARKETS SUMMARY:

May corn closed down 6.25 cents per bushel at $4.5575, May soybeans closed up .50 cent at $11.5975, and May soybean meal closed down $.40 per ton at $314.90. May Chicago wheat closed 2.00 cents at $6.0700. June live cattle closed up $1.43 at $240.20. May crude oil is up $3.24 per barrel at $102.88. The Dow Jones Industrial Average is up 50 points at 45,216, with the NASDAQ down 154 points at 20,795.

Monday Midday Dairy Market Summary - Milk Futures Fail After Significant Movement Overnight

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$0.50 Higher
LIVE CATTLE:	$0.82 Higher
DOW JONES:	101 Points Higher
NASDAQ:	132 Points Lower
CRUDE OIL:	$3.93 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents to close at $1.5975 with 10 loads traded. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are 17 cents lower to 5 cents higher. The butter rice remained unchanged at $1.8250 with no loads traded. Grade A nonfat dry milk increased 0.75 cent to close at $1.9300 with two loads traded. Class IV futures are 12-21 cents lower with trading confined to the May, June and July contracts. Butter futures are steady to 4.00 cents lower. Dry whey futures are 0.22 cent lower to 1.02 cents higher. Cheese futures are 1.10 cents lower to 0.30 cent higher. USDA will release the February Agricultural Prices report this afternoon.

Monday Morning Dairy Market Update - Overnight Trading Activity Was Impressive

OPENING CALLS:

Class III Milk Futures:	5 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	MIxed
Soybean Futures:	6 to 9 Higher
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	Mixed

MILK:

It was an interesting overnight market for Class III futures. Both the March and April contracts were active, with March showing 185 trades and April showing 237 trades at the time of this writing. This level of activity is rarely seen during overnight trade. Something triggered aggressive buying as the current bids are significantly below the last trades. Someone paid the price when buying the April contract with a market order, as it rose as much as 63 cents at one point. The current offer is 31 cents higher than Friday's close. The opposite was seen in the March contract as the price fell as much as 91 cents this morning, as again an inexperienced trader entered market orders. It is surprising to see the heavy trading activity in the March contract as Tuesday is the last trading day with the March Federal Order prices announced on Wednesday. USDA will release the February Agricultural Prices report Monday, providing most of the prices used in calculating income over feed for the Dairy Margin Coverage program.

CHEESE:

Cheese prices may see further weakness as buyers might have reached a threshold. Cheese output is strong as milk receipts increase at the plant level, and spot milk is available at a discount.

BUTTER:

Butter futures showed trading overnight, which is unusual, but may become more common as increased volatility has dominated the market. Price swings have been substantial as traders react to underlying cash. Butter orders for the Easter season have been met with business being done as usual.

Friday Closing Dairy Market Update - Large Volume of Butter Changes Hands This Week

GENERAL OVERVIEW:

Class IV futures felt the weight of lower spot prices, while Class III futures held up well overall. The block cheese price was unable to find support as had been expected from the cold storage report.

MILK:

Milk production across the country is strong, with some areas reporting they are experiencing the spring flush. Despite increasing production, milk components remain higher than they were this time last year. Bottling demand is variable, depending on the spring break periods for educational institutions. Milk that is being diverted is being handled easily, but has resulted in lower prices on the spot market. Spot milk prices in the Central region are as much as $6 below class. Class III futures closed mixed, with weakness in the spot cheese prices. The April through July contracts were lower, while the rest of the contracts were higher. The July and August contracts made new highs. Traders hold optimism that the weakness of cheese prices will be short-lived and will rebound and resume the uptrend. The potential for higher milk prices will keep milk production stronger than last year.

AVERAGE CLASS III PRICES:

3 Month:	$17.00
6 Month:	$17.81
9 Month:	$18.14
12 Month:	$18.06

CHEESE:

For the week, blocks declined 8 cents with 22 loads traded. The weekly average price is $1.6305. Barrels declined 0.50 cent with two loads traded. The weekly average price is $1.5710. Dry whey gained 3 cents with one load traded. The block price declined to the lowest level since March 16.

BUTTER:

For the week, butter gained 2.50 cents with 120 loads traded. The volume this week exceeded the high volume we saw a few weeks ago. The weekly average price is $1.8155. Grade A nonfat dry milk gained 5.25 cents with 46 loads traded. The weekly average price is $1.9140. Friday showed the first price decline in Grade A nonfat after 15 consecutive days.

OUTSIDE MARKETS SUMMARY:

May corn closed down 5 cents per bushel at $4.6200, May soybeans closed down 14.50 cents at $11.5925, and May soybean meal closed down $6.80 per ton at $315.30. May Chicago wheat closed steady at $6.0500, and June live cattle closed up $3.98 at $238.78. May crude oil is up $6.35 per barrel at $100.83. The Dow Jones Industrial Average is down 333 points at 45,167, with the NASDAQ down 460 points at 20,948.

Friday Midday Dairy Market Summary - Spot Prices Declined

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	16 Lower
SOYBEAN MEAL:	$5.20 Lower
LIVE CATTLE:	$3.27 Higher
DOW JONES:	641 Points Lower
NASDAQ:	414 Points Lower
CRUDE OIL:	$4.02 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 3.75 cents to close at $1.5825 with seven loads traded. The barrel cheese price declined 0.75, closing at $1.5650 with two loads traded. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are mixed, ranging from 29 cents lower to 15 cents higher. Traders maintain optimism as the block cheese price has declined the past three days, but that has had little impact on Class III futures. The butter price declined by 2.00 cents to close at $1.8250 with 17 loads traded. Grade A nonfat dry milk declined 1.50 cents to close at $1.9225 with 17 loads traded. Class IV futures are 28 cents lower to 21 cents higher. Butter futures are 1.20-4.25 cents lower. Dry whey futures are 0.45 cent lower to 1.05 cents higher. Cheese futures are 2.90 cents lower to 0.40 cent higher.

Friday Morning Dairy Market Update - Overnight Trade Shows Continued Optimism

OPENING CALLS:

Class III Milk Futures:	5 to 10 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	2 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	4 to 5 Higher

MILK:

Traders continue to support Class III futures in the expectation that underlying spot cheese prices will maintain the current level or move higher. Strong demand is keeping pace with increased milk production. This is limiting the increase in inventory. Milk output remaining significantly above a year ago is not viewed as bearish, as it was late last year. The better prices the futures are currently showing throughout the rest of the year will keep milk production strong, and dairy farms will continue to hold onto and add cows.

CHEESE:

The block cheese price showed weakness over the past two days and it is uncertain whether that weakness will continue Friday. Buyers may hold back if the sellers remain actively wanting to move product to limit inventory building at the plant level.

BUTTER:

The market seems to be balanced as buyer interest in the spot market is being met with sellers wanting to move supplies. Sellers are not holding back to see how aggressive buyers will be. Strong butter output needs to be moved and the fact that inventory remains below a year ago is testimony to strong demand.

Thursday Closing Dairy Market Update - January Fluid Milk Sales Decline 2.3%

GENERAL OVERVIEW:

Class III futures were mixed, with pressure on nearby contracts due to further weakness of block cheese. Class IV futures were mostly higher on the increase in butter and nonfat dry milk. January fluid milk sales declined 2.3% from January 2025.

MILK:

Most milk futures contracts showed further gains on Thursday. The confidence of those who have been bullish due to the cold storage report is being tested, as the block cheese price has declined since the report. If there is another day of weakness, liquidation could be triggered. Fluid milk sales in January were 2.3% lower than a year earlier. Whole milk sales increased 1.6%; flavored whole milk jumped 17.8%; reduced fat declined 5.2%; low-fat milk fell 10.3%; flavored fat-reduced milk declined 6.2%; buttermilk sales declined 2.5%; and other fluid milk products increased 2.2%. Organic whole milk sales declined 2.4%; organic flavored whole milk jumped 16.1%; organic reduced-fat milk declined 3.1%; organic low-fat milk sales fell 24.9%; organic fat-free milk declined 15.7%; organic flavored fat-reduced milk sales fell 28.3%; and other organic milk products fell 65.4% from January 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.22
6 Month:	$17.95
9 Month:	$18.22
12 Month:	$18.11

CHEESE:

The spot cheese prices have not responded as many had anticipated after the February Cold Storage report showed a decline in American cheese stocks from January, with inventory 3.0% below February 2025. The weakness of block cheese over the past two days has had little impact on Class III futures. Buyers have not been aggressive, resulting in sellers lowering their offers.

BUTTER:

The spot butter price has responded to another month of inventory remaining 17% below the previous year. Sellers have been offering loads to the spot market, but buyers have purchased those loads, resulting in minor gains. The spot price pushed higher early during spot trading as buyers wanted to take advantage of the lower price. However, gains were trimmed due to sellers willing to take advantage of the aggressive buying and offering loads aggressively. So far this week, there have been 103 loads of butter traded.

OUTSIDE MARKETS SUMMARY:

May corn closed down 0.25 cent per bushel at $4.6700, May soybeans closed up 2 cents at $11.7375, and May soybean meal closed up $2.30 per ton at $322.10. May Chicago wheat closed up 7.25 cents at $6.0500. June live cattle closed up $0.95 at $234.80. May crude oil is up $3.34 per barrel at $93.66. The Dow Jones Industrial Average is down 469 points at 45,960, with the NASDAQ down 522 points at 21,408.

Fluid Milk and Cream - Western U.S. Report 13

California milk production is generally steady. Handlers report slight increases in milk output from last month and year over year milk production is up. Some handlers indicate peak spring volumes are at hand, while others indicate they are yet to arrive. Central Valley processors are taking in plenty of milk. Spot loads are available. 

Arizona stakeholders report stronger farm level milk output for March and stable year over year milk output. 

New Mexico milk production is steady. 

Stakeholders in the Pacific Northwest cite winter weather in the back half of March for reduced cow comfort. Farm level milk output varies from lighter to steady. Some manufacturers note lower than anticipated milk intakes. 

Milk production in the mountain states of Idaho, Utah, and Colorado is generally steady. Manufacturers describe milk volumes and processing capacities as mostly balanced with each other. Some spot milk loads are available. Class I demand is lighter as educational institutions enter their respective spring break weeks. Class II demand varies from steady to stronger. Class III and IV demands are steady. 

Cream multiples increased at the bottom of both ranges. Cream availability is slightly tighter. Cream demand is somewhat stronger, but some buyers are passing up loads due to freight costs. No changes in condensed skim milk availability or demand are reported this week.

Thursday Midday Dairy Market Update - Block Cheese Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$1.90 Higher
LIVE CATTLE:	$0.32 Lower
DOW JONES:	365 Points Lower
NASDAQ:	345 Points Lower
CRUDE OIL:	$4.53 Higher

MIDDAY MARKET UPDATE:

The block cheese price decreased 2.00 cents to close at $1.6200 with one load traded. The barrel cheese price remained unchanged at $1.5725 with no loads traded. Traders may be rethinking their bullish expectations of the market due to cheese inventory in February being below that of a year ago. It has not been reflected in the spot market. The dry whey price increased a penny, closing at 69.00 cents with one load traded. Class III futures are 13 cents lower to 10 cents higher. The butter price increased 2.75 cents to close at $1.8450 with 16 loads traded. The price moved to $1.8625 and then met more aggressive selling, which moved the price off the high. Grade A nonfat dry milk increased 1.50 cents to close at $1.9375 with 12 loads traded. Class IV futures are 19 cents lower to 23 cents higher, with the May and June contracts solidly above $21.00. Butter futures are 2.50 cents lower to 4.85 cents higher. The only loss is in the nearby March contract, with only one load traded. Dry whey futures are 0.05 cent lower to 0.50 cent higher. Cheese futures are 1.10 cents lower to 0.1 cent higher.

Thursday Morning Dairy Market Update - Traders Remain Optimistic

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	Mixed
Soybean Meal Futures:	$1 to $3 Lower
Wheat Futures:	3 to 4 Lower

MILK:

Traders feel confident about continued support for milk prices based on the February Cold Storage report showing American cheese, total cheese, and butter inventories below a year ago. The weakness in the block cheese price on Wednesday had no impact on Class III milk futures. The strength in dry whey and optimism over better milk prices provided the support for traders to be aggressive buyers. This optimism continued in the overnight trade, but may run into resistance as traders may take profits on long positions in case of further weakness in the underlying cash. The pattern of the past few months suggests this possibility.

CHEESE:

It was interesting the block cheese price declined even though the Cold Storage report was supportive of the market. However, the spot maket is what is happening currently. Increased cheese production in March may have added significantly to inventory.

BUTTER:

Surprisingly, the butter price is not being supported due to inventory being substantially below a year ago. Buying interest is strong in the spot market, but manufacturers are aggressively moving supplies. This keeps the supply readily available for the market.

Wednesday Closing Dairy Market Update - May Class IV Closes Above $21

GENERAL OVERVIEW:

Milk futures posted a very strong day on Wednesday. Traders moved Class III futures higher in overnight trade in reaction to the Cold Storage report. That strength continued throughout the day despite the weakness of the block cheese price. Class IV futures were supported.

MILK:

The strength in Class III futures moved the June and later contracts to new highs. The gains on Wednesday were more from the optimism garnered from the February Cold Storage report, showing American and total cheese inventory below a year ago, and not what the actual spot market did. What we can see is that the market is absorbing increased milk production due to strong demand. The market appears to have solid support, and any weakness of the underlying cash may be short-lived. Class III futures are not far from reaching above $19 in later contracts. Class IV futures showed the May and June contracts moving above $21, but could not hold the full gains, with only May closing above $21.

AVERAGE CLASS III PRICES:

3 Month:	$17.33
6 Month:	$18.00
9 Month:	$18.26
12 Month:	$18.13

CHEESE:

Interestingly, the regions report that cheese production is strong and increasing, yet inventory is below a year ago. Spot milk is plentiful due to some plants diverting milk due to maintenance downtime. This is being scheduled ahead of the spring flush that is beginning to take place. After being stronger last week, spot milk prices are as much as $6 under class. Domestic demand is strengthening through retail outlets. International demand remains strong.

BUTTER:

Cream remains plentiful but is less available to butter manufacturers than it has been. Ice cream production is increased along with other Class II products. There is no concern over a shortage despite February inventory being 17% below a year ago. Trading activity has been strong this week in the spot market, with 87 loads already traded during the first three days.

OUTSIDE MARKETS SUMMARY:

May corn closed up 4.75 cents per bushel at $4.6725, May soybeans closed up 16.75 cents at $11.7175, and May soybean meal closed down $2.60 per ton at $319.80. May Chicago wheat closed up 7.75 cents at $5.9775. June live cattle closed down $0.75 at $233.85. May crude oil is down $0.98 per barrel at $91.37. The Dow Jones Industrial Average is up 305 points at 46,429, with the NASDAQ up 168 points at 21,930.

Wednesday Midday Dairy Market Summary - Nonfat Dry Milk Showed Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	5 Higher
SOYBEANS:	17 Higher
SOYBEAN MEAL:	$1.90 Lower
LIVE CATTLE:	$0.92 Lower
DOW JONES:	352 Points Higher
NASDAQ:	209 Points Higher
CRUDE OIL:	$1.94 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.50 cents to close at $1.6400 with four loads traded. The barrel cheese price remained unchanged at $1.5725 with no loads traded. The dry whey price gained 2.00 cents, closing at 68.00 cents with no loads traded. Class III futures are 7 cents lower to 45 cents higher. The butter price increased 0.25 cent to close at $1.8175 with 45 loads traded. The price initially increased to $1.8350, but the volume of loads offered put some pressure on the market. There were 18 unfilled bids and seven uncovered offers remaining at the close. Grade A nonfat dry milk increased 1.25 cents to close at $1.9225 with 11 loads traded. Buyers continue to remain aggressive. This is the highest price since April 1, 2014. Class IV futures are 25-50 cents higher. Butter futures are 3.50-7.30 cents higher. Dry whey futures are 1.70-2.07 cents higher. Cheese futures are 0.30 cent lower to 3.30 cents higher.

Wednesday Morning Dairy Market Update - Overnight Futures Indicate Higher Prices

OPENING CALLS:

Class III Milk Futures:	10 to 25 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	2 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	2 to 4 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	8 to 10 Lower

MILK:

Class III milk futures post double-digit gains in overnight trading. This strength stems from the February Cold storage report, which showed cheese inventory increasing, but below a year ago. It is unusual for cheese stocks to increase in February. Demand is historically slower in the first half of the year. However, that does not appear to be the case. Strong milk production is being absorbed, and this report supports that. Whether this is sufficient to generate buying interest in the spot market and milk prices to increase remains to be seen. The spring flush period will increase milk availability, but it is expected to be absorbed without difficulty.

CHEESE:

American cheese inventory in February was 3% below that of February 2025. That is a bullish scenario, as strong cheese production was absorbed. Inventory usually increases during this time of year. Total cheese inventory was down 1% from a year ago. This should maintain support under the spot cheese market with higher prices warranted.

BUTTER:

Butter futures posted trade in the overnight session, which is unusual. Trade only took place in the May contract, but the price was up 3.47 cents. Bids placed overnight were higher than the close, indicating a similar reaction as the Class III futures. Cold storage showed inventory 17% below February 2025 and paints a bullish scenario.

Tuesday Closing Dairy Market Update - Total Cheese Inventory Declines From the Previous Year

GENERAL OVERVIEW:

Both Class III and IV futures were mixed on Tuesday. Spot cheese prices were unchanged, keeping traders uncertain over further strength. Higher butter and nonfat dry milk prices did not trigger buying interest, as the market had the increases already factored in. The cold storage report showed the butter and total cheese inventory below February 2025.

MILK:

Milk futures showed little direction as traders adjusted their positions to remain in line with cash. The limited volatility did not provide much opportunity to scalp the market for a good profit if it were to develop. The overall market did not react negatively to the bearish milk production report, but it may limit the outlook for price potential as the year progresses. However, the February Cold Storage report shows that increased milk production is being absorbed by demand, limiting the increase in supplies. February dairy cattle slaughter decreased by 9,500 head from January, totaling 237,300 head. This is not surprising, as there were three fewer days in the month. However, slaughter was significantly higher than in February 2025, with an increase of 20,300 head. But even with this increase in slaughter cow numbers, there are 211,000 more in the nation's dairy herd than a year ago.

AVERAGE CLASS III PRICES:

3 Month:	$17.18
6 Month:	$17.79
9 Month:	$18.05
12 Month:	$17.96

CHEESE:

The February Cold Storage report was released on Tuesday. American cheese inventory decreased by 8.2 million pounds from January. This is 3% below February 2025. Swiss cheese increased by 938,000 pounds, totaling 24.5 million pounds, up 2% from a year ago. Other cheese inventory increased 12.2 million pounds, totaling 576.0 million pounds. This was 1% above a year ago. Total cheese inventory increased 4.7 million pounds, totaling 1.387 billion pounds. This was 1% below February 2025.

BUTTER:

Butter inventory increased by 27.0 million pounds, totaling 253.8 million pounds. This was 17% below February 2025. Despite increasing inventory, year-over-year stocks did not increase, as the January inventory was 17% below the previous year.

OUTSIDE MARKETS SUMMARY:

May corn closed up 3 cents per bushel at $4.6250, May soybeans closed down 8.50 cents at $11.5500, and May soybean meal closed down $4.20 per ton at $322.40. May Chicago wheat closed up 2.25 cents at $5.9000. June live cattle closed down $0.05 at $234.60. May crude oil is up $1.05 per barrel at $89.18. The Dow Jones Industrial Average is down 84 points at 46,124, with the NASDAQ down 185 points at 21,762.

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Moves to a 12-Year High

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	8 Lower
SOYBEAN MEAL:	$3.80 Lower
LIVE CATTLE:	$0.10 Lower
DOW JONES:	19 Points Higher
NASDAQ:	150 Points Lower
CRUDE OIL:	$3.80 Higher

MIDDAY MARKET UPDATE:

The block cheese price remained steady at $1.6550 with 10 loads traded. The price moved 2 cents higher at one point during spot trading and 0.50 cent lower as well. This raised caution in the traders' minds, moving them to be conservative. The barrel cheese price remained unchanged at $1.5725 with no loads traded. The dry whey price remained unchanged at 66.00 cents with no loads traded. Class III futures are 13 cents lower to 8 cents higher. The butter price increased by 4.00 cents to close at $1.8150 with 28 loads traded. The price moved to $1.8200 at one point during spot trading, but slipped under the volume of selling activity. Grade A nonfat dry milk increased 3.25 cents to close at $1.91 with three loads traded. This is the highest price since April 15, 2024. Class IV futures are mixed from 15 cents lower to 15 cents higher. Butter futures are 0.50 cent lower to 3.12 cents higher. Dry whey futures are 0.27-2.35 cents higher. Cheese futures are 0.10-3.00 cents lower. The February Cold Storage report will be released this afternoon and is expected to show an increase in inventory.

Tuesday Morning Dairy Market Update - Traders Look Ahead to Cold Storage Report

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

There was very limited activity overnight in milk futures. Traders may take a wait-and-see attitude, needing further direction from the underlying cash before feeling confident about the price direction. The bearish implications of the milk production report were not evident on Monday, but may surface Tuesday if there is weakness in the spot market. It is uncertain how much the hot weather will impact milk production in the West and Southwest regions. The rest of the country will see increased evidence of the spring flush as cow comfort improves. USDA will release the February Cold Storage report Tuesday afternoon. The report is expected to show an increase in inventory, but the increase may be less than usual for the month.

CHEESE:

The weakness of the block cheese price on Monday may keep traders cautious Tuesday. Class III milk futures close higher despite the weakness, but another day of weakness might trigger significant selling. Increasing cheese production and continued strong milk output may limit the upside price potential.

BUTTER:

The butter price has yet to find solid support. Buyers have been able to purchase a substantial amount of butter on the spot market. This is satisfying current demand and allowing buyers to build inventory. However, inventory is lower than a year ago as the increase is less than usual. This indicates solid domestic and international demand.

Monday Closing Dairy Market Update - Milk Futures Post Double-Digit Gains

GENERAL OVERVIEW:

Milk futures closed higher on Monday, except for the March Class III contract. Traders remain optimistic despite limited movement in the underlying cash market. USDA will release the February Cold Storage report on Tuesday.

MILK:

Class III futures showed a second day of gains despite little change in underlying cash prices. Class IV futures continue to increase, with the April through July contracts now above $20. If support is found in the butter price, Class IV futures will quickly move above $21. The strength on Monday was not due to a bullish milk production report, as the report released on Friday was bearish. Milk production was 2.9% above a year ago, with cow numbers up 15,000 head from the previous month. There were only four states of the top 24 states that showed milk production declines. New Mexico declined 5.7% from February 2025. Washington declined 4.5%, Pennsylvania declined 1.9%, and Illinois declined 0.8%. The state with the greatest percentage increase in production was Kansas, with a gain of 28.7%. South Dakota increased 10.6%, Utah gained 7.2%, Oregon gained 6.4%, and Texas gained 5.2%. The remaining states gained less than 5.0%. Strong milk production is expected to continue.

AVERAGE CLASS III PRICES:

3 Month:	$17.08
6 Month:	$17.72
9 Month:	$18.01
12 Month:	$17.91

CHEESE:

Cheese prices showed little change, with buyers less aggressive in the block market. Cheese output is increasing as milk production improves. The cold storage report is expected to show an increase in inventory, but likely not to any great amount. Demand has been improving, but it is uncertain as to how much more upside price potential there will be.

BUTTER:

The butter price has yet to find support. The decline to this level has been surprising. With lower inventory than a year ago, buyers were expected to step up at a higher level to increase ownership. The cold storage report is expected to show an increase in inventory but remain significantly below that of a year ago.

OUTSIDE MARKETS SUMMARY:

May corn closed down 6.00 cents per bushel at $4.5950, May soybeans closed up 2.25 cents at $11.6350, and May soybean meal closed down $1.40 per ton at $326.60. May Chicago wheat closed down 7.50 cents at $5.8775. June live cattle closed up $1.23 at $234.65. May crude oil is down $10.10 per barrel at $88.13. The Dow Jones Industrial Average is up 631 points at 46,208, with the NASDAQ up 299 points at 21,947.

Monday Midday Dairy Market Summary - Milk Futures Are Higher Despite Underlying Cash Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$1.00 Lower
LIVE CATTLE:	$0.77 Higher
DOW JONES:	744 Points Higher
NASDAQ:	306 Points Higher
CRUDE OIL:	$9.00 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 0.75 cent to close at $1.6550 with no loads traded. There were two unfilled bids and one uncovered offer remaining at the close of spot trading. The barrel cheese price increased 0.25 cent to close at $1.5725 with no loads traded. The dry whey price remained unchanged at 66.00 cents with no loads traded. Class III futures are 2 cents lower to 19 cents higher. The butter price declined 2.50 cents to close at $1.7750 with 14 loads traded. There were six unfilled bids and no offers remaining at the close. Grade A nonfat dry milk gained 0.75 cent to close at $1.8775 with three loads traded. Class IV futures are steady to 46 cents higher. Butter futures are 0.30-3.60 cents lower. Dry whey futures are steady to 1.67 cents higher. Cheese futures are 0.20 cent lower to 1.70 cents higher.

Monday Morning Dairy Market Update - Milk Futures Find Strength

OPENING CALLS:

Class III Milk Futures:	10 to 20 Higher
Class IV Milk Futures:	5 to 1h Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 3 Lower
Soybean Futures:	1-2 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	5 to 6 Lower

MILK:

Traders supported milk futures overnight with nearby Class III contracts posting double-digit gains. This was a bit surprising due to the release of the February Milk Production report on Friday, which is considered bearish to the market. Milk production was 2.9% higher than a year earlier, with cow numbers up 15,000 head from the previous month. The maket focus might be on the record temperatures being experienced in the western half of the country and how it could impact overall milk output. Crude oil futures fell dramatically early Monday morning as some positive news came out of the discussions with Iran. President Trump delayed military strikes on power plants and energy infrastructure in Iran. However, dairy markets have been little impacted by the movement of crude oil, and this is likely to be the same.

CHEESE:

There is uncertainty as to the strength of cheese prices moving forward. Blocks have had a nice rally, but may see buyer resistance at this level. There is sufficient cheese available in the market, and inventories are building seasonally.

BUTTER:

It seems that butter is finding support at the current level. It may not turn the market to trend higher anytime soon, as manufacturers are maintaining a strong production level and selling butter to limit building inventory at the plant level.

Friday Closing Dairy Market Update - February Milk Output Up 2.9%

GENERAL OVERVIEW:

Milk futures were higher in light trading activity following the increase in spot prices. The USDA released the February Milk Production report showing production up 2.0% from February 2025. Cow numbers jumped by 15,000 head from January.

MILK:

Milk futures were higher in response to the increase in all categories in the spot markets except barrels. Trading volume was light in Class III futures. Traders looked ahead to the February Milk Production report and limited activity. The February report showed production in the top 24 states, up 3.1%, totaling 17.6 billion pounds. January milk production was revised 0.2% higher. Production per cow totaled 1,912 pounds and was 13 pounds higher than a year ago. Cow numbers were 13,000 head more than in January. Milk production in the U.S. was 2.9% above a year ago. Milk production per cow totaled 1,899 pounds, 12 pounds above February 2025. Cow numbers increased by 15.000 head from the previous month. The nation's dairy herd totaled 9.62 million head, 211,000 more than in February 2025. This is a negative report.

AVERAGE CLASS III PRICES:

3 Month:	$17.08
6 Month:	$17.69
9 Month:	$17.97
12 Month:	$17.86

CHEESE:

For the week. blocks jumped 13.25 cents with seven loads traded. The weekly average price is $1.6160. The barrel price increased 4.00 cents with no loads traded. The weekly average price is $1.5560. Dry whey remained unchanged at 66.00 cents with four loads traded. The weekly average price is 65.20 cents. The block price moved to the highest price since Nov. 3, 2025, keeping the uptrend intact.

BUTTER:

For the week, butter declined by 4.75 cents with 70 loads traded. The weekly average price is $1.8185. Grade A nonfat dry milk jumped 10.50 cents with 34 loads traded. The weekly average price is $1.8260. I do not believe the Grade A nonfat dry milk price has ever moved higher than the butter price as it did this week. The price is back to the highest level it has been since June 13, 2022.

OUTSIDE MARKETS SUMMARY:

May corn closed down 4.25 cents per bushel at $4.6550, May soybeans closed down 7.25 cents at $11.6125 and May soybean meal closed down $4.50 per ton at $328.00. May Chicago wheat closed down 12.75 cents at $5.9525. June live cattle closed up $1.73 at $233.43. May crude oil is up $2.26 per barrel at $97.81. The Dow Jones Industrial Average is down 444 points at 45,577, with the NASDAQ down 443 points at 21,648.

February Milk Production in the United States up 2.9 Percent

February Milk Production up 3.1 Percent        

Milk production in the 24 major States during February totaled 17.6 billion pounds, up 3.1 percent from February 2025. January revised production, at 19.1 billion pounds, was up 3.6 percent from January 2025. The January revision represented an increase of 37 million pounds or 0.2 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 1,912 pounds for February, 13 pounds above February 2025.   The number of milk cows on farms in the 24 major States was 9.18 million head, 217,000 head more than February 2025, and 13,000 head more than January 2026.  

February Milk Production in the United States up 2.9 Percent  

Milk production in the United States during February totaled 18.3 billion pounds, up 2.9 percent from February 2025.  Production per cow in the United States averaged 1,899 pounds for February, 12 pounds above February 2025.  The number of milk cows on farms in the United States was 9.62 million head, 211,000 head more than February 2025, and 15,000 head more than January 2026. 

Friday Midday Dairy Market Update - Spot Prices Show Strength

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$4.50 Lower
LIVE CATTLE:	$0.67 Higher
DOW JONES:	276 Points Lower
NASDAQ:	342 Points Lower
CRUDE OIL:	$1.58 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents, closing at $1.6625 with two loads traded. The barrel cheese price remained unchanged at $1.57 with no loads traded. The dry whey price increased 1.50 cents to 66.00 cents with one load traded. Class III futures are mixed with contracts ranging from 10 cents lower to 9 cents higher. The butter price increased 0.75 cent closing at $1.80 with eight loads traded. Grade A price increased 2.50 to close at $1.87 with five loads traded. Class IV futures are mostly higher, with contracts ranging from 1 cent lower to 15 cents higher. Butter futures are steady to 1.15 cents higher. Dry whey futures are 0.17 cent lower to 0.25 cent higher. Cheese futures are 1.10 cents lower to 1.40 cents higher. The February Milk Production report will be released this afternoon.

Friday Morning Dairy Market Update - February Milk Production Report Will Be Released This Afternoon

OPENING CALLS:

Class III Milk Futures:	4 to 8 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 3 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	7 to 8 Lower

MILK:

Milk futures continue to chop around with traders scalping the market and creating market movement that sometimes is contrary to the underlying cash. Traders seem to think the upside potential for block cheese is limited. The USDA will release the February Milk Production report Friday afternoon. The report is expected to show higher milk production than a year ago. I estimate milk production to be 3.5% higher than in February 2025, with cow numbers unchanged from January.

CHEESE:

Cheese production is increasing as more milk moves to the vat. This will keep sufficient cheese available to the market and may limit the upside price potential. However, buyers are aggressively purchasing cheese in the spot market to increase their ownership and to meet the current demand for fresh cheese that is 30 days old or less. Some cheese is moving to the retail market while some is being put into aging programs.

BUTTER:

The buying interest in butter that limited the losses in the spot market on Thursday may indicate the market has found support. However, it is not likely a price rebound would regain the recent losses anytime soon. Buyers have been able to purchase a significant amount of butter to put into storage for later use.