GENERAL OVERVIEW:
Milk futures closed the week on a strong note. Class IV futures outpaced Class III, fueled by another strong increase in the nonfat dry milk price. USDA increased its estimates for milk prices this year.
MILK:
The May and June Class IV contract moved above $21.00 again after falling back from that level two weeks ago. The strength came from nonfat dry milk. The strong increase in the Grade A nonfat dry milk price this week was similar to the gains seen in late January and early February. Milk production is increasing seasonally as the spring flush unfolds. USDA released the World Agricultural Supply and Demand Estimates report on Thursday. They increased their estimate for milk production this year to 235.3 billion pounds, up 600 million pounds from the March estimate. The average Class III milk price was raised by $0.25 per cwt to $16.90. The average Class IV price was raised $1.45 per cwt to $18.60. The average All-milk price was raised $0.80 per cwt to $20.50. If realized, the Class III price would be $1.11 below last year. The Class IV price would be $1.22 higher than last year. The All-milk price would be $0.67 below 2025. Health officials confirmed two new cases of bovine tuberculosis in cattle herds in Alpena and Presque Isle counties in Michigan. A herd in Charlevoix County had previously tested positive in February 2026.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.36 |
| 6 Month: | $17.98 |
| 9 Month: | $18.18 |
| 12 Month: | $18.01 |
CHEESE:
For the week, blocks declined 9.50 cents with 13 loads traded. The weekly average price is $1.6080. Barrels declined 1.75 cents with one load traded. The weekly average price is $1.5840. Dry whey increased 1.75 cents with one load traded. The weekly average price is 69.70 cents. The USDA increased its estimate for the average cheese price this year to $1.6450, up 3.00 cents from the March estimate. The dry whey price estimate remained at 66.00 cents. If realized, the cheese price would be $0.14 below the average price of 2025. The dry whey price would be 6.50 cents above that of 2025
BUTTER:
For the week, butter decreased 4.25 cents with 94 loads traded. The weekly average price is $1.7425. Grade A nonfat dry milk increased 14.25 cents with 16 loads traded. The weekly average price is $2.2095. The average price estimate for butter this year was reduced by 5.50 cents for the March estimate to $1.8150. The average nonfat dry milk price was raised by 18.50 cents to $1.5750. If realized, butter would be 40.50 cents below last year. The nonfat dry milk price would be 34.00 cents above 2025.
OUTSIDE MARKETS SUMMARY:
May corn closed down 3.00 cents per bushel at $4.4100, May soybeans closed up 10.50 cents at $11.7575, and May soybean meal closed up $14.20 per ton at $331.80. May Chicago wheat closed down 3.50 cents at $5.7100. June live cattle closed up $2.00 at $249.20. May crude oil is down $2.34 per barrel at $95.53. The Dow Jones Industrial Average is down 269 points at 47,917, with the NASDAQ up 80 points at 22,903.
