GENERAL OVERVIEW:
There was not much direction from the spot market for cheese and butter. The strength in Class IV futures stemmed from the strength in the Grade A nonfat dry milk price. Cheese production is strong as more milk is available for manufacturing.
MILK:
Reports from the Central region indicate increased milk production. Many cheese plants are running on full schedules are not taking on any extra milk. This leaves more milk on the spot market with spot prices this week at $5.00 under to flat class. Extra milk is available due to the slowing of bottling as spring break is taking place and will continue over the next few weeks as various schools close. Dairy exports for 2025 increased 4% from 2024. The total value of exports was 15% higher than in 2024. Dairy exports on a milk solids equivalent surged 13% in December alone, the second highest in history. The lower prices spurred increased international demand. This strength is expected to continue as world prices remain substantially higher than the U.S. prices.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.51 |
| 6 Month: | $17.18 |
| 9 Month: | $16.37 |
| 12 Month: | $16.67 |
CHEESE:
Cheese exports in December increased 63%, making exports for the year 20% higher than in 2024. This has had little impact on domestic prices. However, without this growth in international demand, milk prices could have been much lower. Dry whey exports for the year were unchanged from the previous year.
BUTTER:
Butterfat exports had the biggest month of the year in December, increasing 260% above December 2024. Butterfat exports for the year increased by 167% compared to 2024. Whole milk powder exports in 2025 were 56% above the previous year. Nonfat dry milk/skim milk powder exports in 2025 were 9% higher than in 2024.
OUTSIDE MARKETS SUMMARY:
May corn closed up 2.25 cents per bushel at $4.6250, May soybeans closed up 13.25 cents at $12.2725, and May soybean meal closed up $4.80 per ton at $320.20. May Chicago wheat closed up 3.75 cents at $5.9850. April live cattle closed up $1.10 at $231.25. April crude oil is up $8.48 per barrel at $95.73. The Dow Jones Industrial Average is down 739 points at 46,678, with the NASDAQ down 404 points at 22,312.
