Thursday Midday Dairy Market Summary - Butter Shows Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	9 Higher
SOYBEAN MEAL:	$2.90 Higher
LIVE CATTLE:	$1.60 Lower
DOW JONES:	59 Points Lower
NASDAQ:	82 Points Higher
CRUDE OIL:	$0.28 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.00 cent to close at $1.4875 with two loads traded. The price did trade down to $1.4850 during spot trading before coming back. The barrel cheese price remained unchanged at $1.44 with no loads traded. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are 11 cents lower to 7 cents higher. The butter price gained 1.50 cents to close at $1.6350 with 30 loads traded. The price ranged from $1.6250 to $1.6700 during the spot trading period. There were 6 unfiled bids and 30 uncovered offers remaining at the close of spot trading. This may indicate the upside may be limited. Grade A nonfat dry milk slipped 0.75 cent to close at $2.0850 with 15 loads traded. Class IV futures are 7-50 cents higher. Butter futures are 0.80 -- 3.12 cents higher. Dry whey futures are 0.60 -- 0.90 cent higher. Cheese futures are 1.00 cent lower to 0.40 cent higher.

Thursday Morning Dairy Market Update - Traders Uncertain Over Continued Strength

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Higher
Soybean Futures:	9 to 10 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	3 to 4 Higher

MILK:

Class III futures had some minor support on Wednesday from the increase in the block cheese price, but traders were not confident enough to buy futures aggressively. The decline in the barrel cheese price was a surprise, but it may have provided indirect concern for traders. The barrel cheese price has no influence on the calculation of the Class III price. Class IV futures were very strong as the increase in butter and nonfat dry milk prices triggered significant buying interest. The milk supply certainly is not lacking, keeping bottling and manufacturing active. More milk is being diverted to manufacturing as schools close for the summer.

CHEESE:

Cheese supplies remain plentiful. This will continue as more milk is moving to the vat. Cheese inventory is increasing, but remains slightly below a year ago. This is of no concern to buyers as there is sufficient available for demand.

BUTTER:

The increase in the butter price was the largest one-day increase we have seen for a while. Traders remain cautious over the upside potential. Butter futures were higher on Wednesday, but the gains were limited as there seems to be little reason to believe the strength will continue. Sellers may be aggressive in the spot market as they take advantage of the higher price.

Wednesday Closing Dairy Market Update - Butter Prices Rally

GENERAL OVERVIEW:

Trade activity in the butter market seemed to be the highlight of the session Wednesday as prices quickly bounced off nearly 4-month lows. Milk futures were limited to single-digit price shifts, with very limited market direction developing in any contract months.

MILK:

Milk futures remained mixed Wednesday in very limited trade activity in all nearby and deferred contracts. The limited volume across the entire complex seems to be focused on current milk production levels, which are ample for current and expected short-term demand. But the onset of more summerlike weather in several production areas is causing some speculation that milk production will see seasonal pressure due to heat stress if this trend continues. June contracts are the most active contracts, falling 8 cents per cwt, moving to $16.52 per cwt. July through December contracts were able to etch higher, although limited gains and trade volume were seen in all contracts. The focus on strong domestic and export demand continues to help solidify price levels in the current market range, although it may take a significant shift in order to draw additional long-term support into the market through the summer months.

AVERAGE CLASS III PRICES:

3 Month:	$16.70
6 Month:	$17.30
9 Month:	$17.55
12 Month:	$17.56

CHEESE:

Cash cheese prices were mixed on the daily CME exchange Wednesday. Block cheese prices posted a total of 8 loads selling during the exchange market, while prices continued to etch higher, moving to $1.4975 a pound, following a 0.5 cent-per-pound gain. Barrel cheese prices on the other hand backed away from previous market support, falling 3 cents per pound in limited trade activity. A total of 2 loads of barrel cheese sold on the exchange. In the most recent USDA cheese highlights report, Northeast milk production is strong, with cheesemakers running full schedules on contracted milk. Class III spot milk and condensed skim are scarce. May sales are improving, retail demand is lighter, bulk cheese demand is firm, and export interest exceeds supply. Central milk output is steady and above last year. Cheesemakers are running full schedules. Spot Class III milk is $6 under to $1 over Class. Holiday production levels are factoring into price variance for spot milk. Domestic demand is stronger and exports remain steady. Western milk production is meeting expectations, but is tight in some areas. Spot milk demand is moderate. Cheese production ranges steady to lighter ahead of the holiday and spot inventories remain tight. Domestic demand is steady while export demand is steady to strong.

BUTTER:

Cash butter prices quickly bounced higher Wednesday morning on the exchange. Following setting nearly 4 month market lows earlier in the week when traders returned from the long holiday weekend, buyer support has regained momentum during the last week of May. Butter supplies still remain readily available, and milk supplies moving to butter churns are far from short through the spring. But buyers seem to be aggressively willing to purchase at lower prices following the market decline. Cash butter prices surged 6 cents per pound in the last day, with another 14 loads exchanging hands during the session. This accounts for a weekly total of 50 loads, with two more trading days yet this week and month.

OUTSIDE MARKETS SUMMARY:

July corn closed down 5.00 cents per bushel at $4.5250, July soybeans closed down .75 cent at $11.8525 and July soybean meal closed up $2.00 per ton at $330.60. July Chicago wheat closed down 13.00 cents at $6.2250. August live cattle closed up $3.35 at $242.50. July crude oil is down $4.42 per barrel at $89.47. The Dow Jones Industrial Average is up 182 points at 50,644 and NASDAQ is up 18 points at 26,674.

Wednesday Midday Dairy Market Summary - Cash Butter Prices Lead Complex Higher

OUTSIDE MARKETS SUMMARY:

CORN:	3 1/4 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$3.60 Higher
LIVE CATTLE:	$3.55 Higher
DOW JONES:	226 Points Higher
NASDAQ:	3 Points Lower
CRUDE OIL:	$4.41 Lower

MIDDAY MARKET UPDATE:

Class III milk futures are mixed in a narrow to moderate trading range Wednesday morning with soon-to-expire spot month May contracts gaining 1 cent per cwt at $16.91 per cwt. June contracts continue to be the most actively traded market in the complex, but wide morning swings in outside markets seem to have moved trader interest from fundamental market moves, focusing on potential technical pressure following the Memorial Day holiday. June futures are trading at $16.49 per cwt, currently 11 cents per cwt lower. The rest of the complex remains mixed in a very narrow range from 5 cents lower to 4 cents per cwt higher, with prices through late summer and early fall starting to gain momentum based on potential strong dairy demand and milk supply tightness due to seasonal trends. Cash cheese prices remain mixed in moderate trade activity with block prices increasing 0.5 cent per pound, moving to $1.4975 per pound with eight loads of block cheese selling on the exchange. Barrel cheese trade remained sluggush with just two loads traded, as prices fell 3 cents per pound, to $1.44 per pound. Butter prices were the bright spot of the entire dairy complex, moving 6 cents per pound higher, to $1.62 per pound. Continued active trade in the butter exchange posted 14 loads of butter selling Wednesday, pushing the holiday-shortened week total to 50 loads already this week. Traders will closely monitor all cash market movement through the rest of the week, in order to get a better handle on post-holiday buyer demand.

Wednesday Morning Dairy Market Update - Price Strength May Be Difficult to Maintain

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 2 Lower
Soybean Meal Futures:	Steady to $1 Higher
Wheat Futures:	7 to 9 Lower

MILK:

There seems to be little change in the market as farms continue to push milk production and increase cow numbers. It is more than just holding onto cows to produce another calf, but the increase in longevity of the cow due to improved genetics is building the herd. Milk production per cow remains strong, indicating there are not a lot of low-producing cows in the dairy herd. The capacity to process more milk has been added and is being added with the expectation of increased milk supply. Farmers are embracing the ability to increase milk production. The only thing to slow milk output in the near term will be the weather. However, that will be minimized due to advances in keeping cows comfortable.

CHEESE:

Increased cheese production has moved the block cheese price to the lowest level since Feb. 17. More milk is being made available to the vat. This allows for increased cheese production, with plants wanting to move it to the spot market rather than build inventory.

BUTTER:

The increase in the butter price was welcomed over the past two days, but it may be short-lived or have limited upside potential. The fact that April inventory was 9.0 percent below a year ago is not impacting the desire of plants to move supplies to keep plant inventories from building.

Tuesday Closing Dairy Market Update - April Cold Storage Increased From a Year Ago

GENERAL OVERVIEW:

It was another negative day for milk futures, with Class IV contracts posting greater losses than Class III. The April Milk Production report was bearish. Milk production was up 2.7 percent, with cow numbers up 10,000 head.

MILK:

Milk futures left much to be desired today as the underlying cash provided little support. The strength in dry whey was offset by the weakness in cheese. The strength in butter was offset by the weakness of nonfat dry milk. This left Class III milk futures lower while putting substantial pressure on Class IV futures. The weakness of nonfat dry milk is eliminating a substantial amount of premium from Class IV futures. The April Milk Production report showed the trend for continued higher milk production and cow numbers. There were 5 of the top 24 states that showed a decrease in milk production from 2025. Washington showed the largest decline of 7.0 percent. Pennsylvania declined 2.0 percent, Virginia was down 0.8 percent, Vermont was down 0.5 percent, and New Mexico declined 0.4 percent. The largest percentage increase was seen in Kansas with an increase of 23.7 percent. Oregon was up 7.4 percent, South Dakota gained 6.3 percent, Indiana was up 5.6 percent, and both Colorado and Georgia were up 5.1 percent. The rest of the gains were less than 5.0 percent.

AVERAGE CLASS III PRICES:

3 Month:	$16.79
6 Month:	$17.33
9 Month:	$17.55
12 Month:	$17.58

CHEESE:

The April Cold Storage report showed American cheese inventory increased 12.0 million pounds from March to 817.6 million pounds. This is 1 percent below April 2025. Swiss cheese inventory totaled 24.9 million pounds. This was 115,00 pounds above March and was 8 percent above a year ago. Other cheese inventory totaled 575.2 million pounds, down 1 percent from a year ago. Total cheese inventory reached 1.418 billion pounds, up 12.4 million pounds from March, but down 1 percent from April 2025.

BUTTER:

The spot butter price closed higher with a significant volume of 36 loads changing hands.

The April Cold Storage report showed butter stocks increased 18.3 million pounds from March, totaling 308.2 million pounds. Even though inventory increased, stocks are 9.0 percent lower than a year ago.

OUTSIDE MARKETS SUMMARY:

July corn closed down 5.75 cents per bushel at $4.5750, July soybeans closed down 10.50 cents at $11.8600, and July soybean meal closed down $3.30 per ton at $328.60. July Chicago wheat closed down 10.75 cents at $6.3550. August live cattle closed down $0.45 at $239.15. July crude oil is down $2.71 per barrel at $93.89. The Dow Jones Industrial Average is down 118 points at 50,462, with the NASDAQ up 312 points at 26,656.

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Continues Lower

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$1.80 Lower
LIVE CATTLE:	$1.75 Lower
DOW JONES:	192 Points Lower
NASDAQ:	220 Points Higher
CRUDE OIL:	$2.53 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.4925 with 8 loads traded. The barrel cheese price declined a penny, closing at $1.4700 with no loads traded. The dry whey price increased 0.50 cent to close at 68.50 cents with no loads traded. Class III futures are unchanged to 12 cents lower. The butter price gained 2.50 cents, closing at $1.5600 with 36 loads traded. There were 16 unfilled bids and 25 uncovered offers remaining at the close. The price initially increased to $1.5775 before slipping back by the close of spot trading. Grade A nonfat dry milk declined 3.00 cents to close at $2.0425 with 9 loads traded. There were 5 unfilled bids and 5 uncovered offers remaining at the close. Class IV futures are 36 cents lower to 3 cents higher. Butter futures are 0.40--3.00 cents higher. Dry whey futures are 1.75 cents lower to 0.50 cent higher. Cheese futures are 1.40 cents lower to 0.40 cent higher.

Tuesday Morning Dairy Market Update - Overnight Trade Has Been Active

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 6 Lower
Soybean Futures:	7 to 9 Lower
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	7 to 9 Lower

MILK:

The bearishness of the April Milk Production report may already be factored in after the decline in milk futures over the past week. However, the trend of higher milk production and higher cow numbers continues. This will limit the upside potential for milk prices for the time being. It is uncertain how much more the nation's dairy herd will increase, but it may take some time for the trend to slow. High calf prices are a large driver behind the increase in cow numbers. The result of higher cow numbers is greater milk production. Underlying cash has not been able to find support, and the recent weakness in nonfat dry milk indicates the top of that market has been reached. Overnight trading has been unusually active. May shows over 200 contracts, June over 300 contracts, and July over 100 contracts traded.

CHEESE:

The recent weakness in cheese may not be finished. Even though inventory is slightly below a year ago, there is sufficient supply for demand. Cheese production is increasing as schools close for the summer. Cheese production will not overwhelm the market, as inventory has not exceeded that of a year ago. However, plants want to move supplies quickly to reduce inventory at the plant level.

BUTTER:

There is uncertainty surrounding the butter market. The price has fallen substantially, but it is uncertain whether the market has found support. Sellers continue to move supplies at whatever price they can to keep them from building at the plant level. Churning remains active as cream supplies remain ample

Friday Closing Dairy Market Update - April Milk Production Was Up 2.7%

GENERAL OVERVIEW:

It was another negative day for milk futures, with Class IV contracts posting greater losses than Class III. The April Milk Production report was bearish. Milk production was up 2.7 percent, with cow numbers up 10,000 head.

MILK:

The June Class IV futures contract fell around $1.30 over the past four days as the bottom fell out of Grade A nonfat dry milk, and butter showed further weakness. The July contract fell nearly $1.50. It will be difficult for the market to recover from this. Continued weakness is expected in the nonfat dry milk price. The April Milk Production report was released, and it was bearish for the market. Milk production in the top 24 states was 2.8 percent above April 2026 and was the same increase as the March report from the previous year, after the revision. Milk production per cow was 3 pounds more, averaging 2,082 pounds. Cow numbers increased by 12,000 head from March. Milk production in the U.S. was 2.7 percent above a year ago. Milk production per cow averaged 2,069 pounds, up 14 pounds from a year ago. Cow numbers increased by 10,000 head from March and 190,000 head more than in April 2025. The total number of cows in the nation's dairy herd is 9.645 million head. The growth in cow numbers and the increase in milk production is not slowing down.

AVERAGE CLASS III PRICES:

3 Month:	$16.71
6 Month:	$17.30
9 Month:	$17.54
12 Month:	$17.58

CHEESE:

For the week, blocks declined 5.00 cents with 47 loads traded. The weekly average price is $1.5405. Barels declined 7.50 cents with 2 loads traded. The weekly average price is $1.5090. Dry whey declined 0.50 cent with 2 loads traded. The weekly average price is 68.60 per pound. The block cheese moved to the lowest level since February 20th. The barrel cheese price moved to the lowest level since February 19th.

BUTTER:

For the week, butter declined 10.50 cents with 118 loads traded. The weekly average price is $1.5700. Grade A nonfat dry milk fell 20.00 cents with 26 loads traded. The weekly average price is $2.18. Butter has moved to the lowest price since January 29th. Grade A nonfat dry milk is at the lowest price since April 9th.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.00 cent per bushel at $4.6325, July soybeans closed up 2.25 cents at $11.9650, and July soybean meal closed up $3.50 per ton at $331.90. July Chicago wheat closed down 1.25 cents at $6.4625. August live cattle closed up $0.25 at $239.60. July crude oil is up $0.50 per barrel at $96.85. The Dow Jones Industrial Average is up 294 points at 50,580, with the NASDAQ up 51 points at 26,344.

April Milk Production up 2.8 Percent

April Milk Production up 2.8 Percent        

Milk production in the 24 major States during April totaled 19.2 billion pounds, up 2.8 percent from April 2025. March revised production, at 19.7 billion pounds, was up 2.8 percent from March 2025. The March revision represented an increase of 71 million pounds or 0.4 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,082 pounds for April, 13 pounds above April 2025.   The number of milk cows on farms in the 24 major States was 9.21 million head, 193,000 head more than April 2025, and 12,000 head more than March 2026.   

April Milk Production in the United States up 2.7 Percent  

Milk production in the United States during April totaled 20.0 billion pounds, up 2.7 percent from April 2025.  Production per cow in the United States averaged 2,069 pounds for April, 14 pounds above April 2025.  The number of milk cows on farms in the United States was 9.65 million head, 190,000 head more than April 2025, and 10,000 head more than March 2026. 

 

Friday Midday Dairy Market Summary - Nonfat Dry Milk Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$3.80 Higher
LIVE CATTLE:	$0.17 Lower
DOW JONES:	189 Points Lower
NASDAQ:	25 Points Lower
CRUDE OIL:	$0.83 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 3.50 cents to close at $1.5050 with one load traded. The barrel cheese price remained unchanged at $1.48 with no loads traded. The dry why price declined 0.75 cent to close at 68.00 cents with one load traded. The block cheese price has declined to the lowest level since February 20th. Class III futures are 23 cents lower to 5 cents higher. The butter price increased a penny to close at $1.5350 with 23 loads traded. Grade A nonfat dry milk declined 2.00 cents to close at $2.0725 with 18 loads traded. There were 28 unfilled bids and 6 uncovered offers remaining at the close of spot trading. Class IV futures are 32 cents lower in the June contract and 38 cents lower in the July contract. These are the only 2 centracts that have traded. Butter futures are 1.00 cents lower to 1.00 cents higher on light trading activity. Dry whey futures are 2.25 cets lower to 0.70 cents higher. Cheese futures are 1.60 cents lower to 0.40 cent higher. The April Milk Production report will be released today. I estimate production to be 2.0 percent higher than a year ago. I estimate cow numbers to be 5,000 head higher than March.

Friday Morning Dairy Market Update - Spot Prices May Show Further Weakness

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	10 to 15 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	4 to 5 Higher
Soybean Meal Futures:	Steady to $1 Lower
Wheat Futures:	Steady to 1 Higher

MILK:

Not much is expected in the market Friday. The negativity of the week will be difficult to overcome unless there is unexpected strength in the spot markets. With the aggressive selling that has taken place this week, it is doubtful buyers will turn aggressive. The April Milk Production report will be released this afternoon, and it is not expected to be very supportive to the market. I estimate milk production to be 2.0% above a year ago due to higher cow numbers and production per cow. I estimate cow numbers to be 5,000 head more than in March.

CHEESE:

The weakness of cheese on Thursday may result in buyers continuing to hold back today. Sellers are aggressive and intend to move supplies as quickly as possible and at lower prices. Cheese production is strong, but demand may be slowing due to higher fuel and food prices.

BUTTER:

Sellers remain aggressive, offering a substantial volume of loads to the spot maket. It is not that demand has declined, but that supply is plentiful and manufacturers do not want to have inventory build at the plant level. Buyers are willing to purchase, but are not willing to buy aggressively.

Thursday Closing Dairy Market Update - Cattle Slaughter Increase in April

GENERAL OVERVIEW:

The weakness does not stop. Spot prices are making another leg down as selling intensifies. Nonfat dry milk showed exceptional weakness as buyers step back. Dairy cattle slaughter increased from the previous year.

MILK:

Milk futures took another beating, with Class IV contracts hit harder than Class III. The weakness in Grade A nonfat dry milk took quite a bit of premium out of the market. The bearishness of the market has increased and may be difficult to overcome anytime soon. Dairy farms are pushing as much milk as possible to compensate for lower milk prices. Dairy cattle slaughter in April totaled 215,100 head, down 24,100 head from March. Slaughter increased by 7,900 head from April 2025. This stands to reason due to the higher cow numbers. Higher cow numbers would increase the volume of cows that might move to slaughter, but it would not reduce the herd. USDA will release the April Milk Production report on Friday.

AVERAGE CLASS III PRICES:

3 Month:	$16.83
6 Month:	$17.46
9 Month:	$17.65
12 Month:	$17.67

CHEESE:

The block cheese price lost most of what it gained on Wednesday. The barrel cheese price declined to the lowest level it has been since February 19th. Buyers continue to hold back in the spot market, waiting for sellers to lower prices. Buyers remained willing to purchase supplies, but only at a lower level. As long as sellers remain aggressive, buyers will remain complacent.

BUTTER:

Butter is unable to find a bottom and is heading back to the lows from the beginning of the year. The large decline in Grade A nonfat dry milk moved the price to the lowest level since April 9th and the largest one-day decline since September 19, 2008. The daily price calculation for class prices showed the Class IV price declining by $1.01 per cwt today, just in the decline of nonfat dry milk alone.

OUTSIDE MARKETS SUMMARY:

July corn closed down 3.50 cents per bushel at $4.6225, July soybeans closed down 5.50 cents at $11.9425 and July soybean meal closed down $2.50 per ton at $328.40. July Chicago wheat closed down 13.00 cents at $6.4750. August live cattle closed down $5.95 at $239.35. July crude oil is down $1.91 per barrel at $96.35. The Dow Jones Industrial Average is up 276 points at 50,286, with the NASDAQ up 23 points at 26,293.

Fluid Milk and Cream - Western U.S. Report 21

California milk production varies from steady to lighter for week 21. Stakeholders indicate warmer temperatures are reducing cow comfort in some areas. May 2026 milk production is up slightly compared to last month. Milk output continues to be up significantly year-over-year. Manufacturers note milk intakes are above expectations but are manageable. Although spot loads remain available, Central Valley processors describe milk volumes as balanced. 

In Arizona and New Mexico, farm level milk output varies from steady to lighter. Some manufacturers are securing spot milk loads. 

Milk production in the Pacific Northwest is steady. Some stakeholders indicate milk volumes are somewhat tight. 

In the mountain states of Idaho, Utah, and Colorado, farm level milk output is steady. Idaho processors report plenty of milk is available to meet needs and components remain strong. Colorado processors report milk volumes remain balanced relative to processing capacities. Class I, II, III, and IV demands vary from steady to lighter throughout the region with the upcoming holiday weekend and summer breaks beginning at educational institutions. 

Cream availability is accommodating buyer needs in the West. Cream demand and multiples are steady. No changes in condensed skim milk availability and demand are reported this week.

Thursday Midday Dairy Market Summary - Nonfat Dry Milk Falls

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$0.90 Lower
LIVE CATTLE:	$3.75Lower
DOW JONES:	265 Points Higher
NASDAQ:	78 Points Higher
CRUDE OIL:	$1.07 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 3.00 cents, closing at $1.54 with 10 loads traded. The barrel cheese price declined 3.50 cents, closing at $1.48 with two loads traded. It has been unusual to have any loads traded for barrels. The dry whey price increased 0.50 cent to close at 68.75 cents with no loads traded. Class III futures are 1-33 cents lower. The butter price declined 2.50 cents to close at $1.5250 with 31 loads traded. Grade A nonfat dry milk fell 11.75 cents to close at $2.0925 with seven loads traded. This is the largest one-day price decline since September 19, 2008. This solidifies that the top is in, and it may indicate that the market could fall faster than it went up. Class IV futures have only traded in the June contract, posting a loss of $0.39. Butter futures are 0.02 – 4.30 cents lower. Dry whey futures are 1.00 - 1.50 cents lower. Cheese futures are 2.10 cents lower to 0.10 cent higher. The April Livestock Slaughter report will be released today, providing the number of dairy cattle slaughtered for the month.

Thursday Morning Dairy Market Update - Weakness May Prevail

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	10 to 15 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 3 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	4 to 5 Lower

MILK:

Milk futures have little support with the weakness in the underlying cash. The bounce in the cheese price did not garner much buying interest from traders are it is expected to be short-lived. Milk output is not slowing down and it will not as long as the weather remains good for cow comfort. The April Milk Production report will be released on Friday, indicating the strength of production and the number of cows in the dairy herd. USDA will release the April Livestock Slaughter report Thursday afternoon. The report provides the level of dairy cattle slaughter for the month.

CHEESE:

The bounce in the block cheese price on Wednesday is expected to be short-lived, as there is little reason for buyers to step up and purchase cheese aggressively. Cheese production is increasing as more milk is moving to manufacturing.

BUTTER:

The butter market is dealing with plentiful supplies as churns operate seven days a week. It is not a matter of inventory building substantially, as it remains below a year ago, but manufacturers want to move supplies to the market as quickly as possible and are willing to offer them at lower prices. As long as selling remains aggressive, buyers will hold for lower prices. 

Wednesday Closing Dairy Market Update - June Advanced Class I Price is $22.80

GENERAL OVERVIEW:

Class IV futures took a beating from the decrease in butter and nonfat dry milk prices. Class III futures also showed mostly lower prices despite the increase in block cheese. The June Class I price is $22.88.

MILK:

The recent slight bullishness that developed in the milk market has quickly turned bearish. Greater concern is developing over the price potential of the market. The weakness in the butter and nonfat dry milk market is especially concerning, with churns running seven days a week due to plentiful cream supplies. There is sufficient supply for the market that buyers do not have to step up to the plate to purchase. Loads continue to be traded in the spot market, and that is keeping the market from going higher. Nonfat dry milk has reached its peak. Based on what the price pattern has been in the last week, especially today's large decline in the nonfat dry milk spot market, we can safely say this is going to put more pressure on Class IV futures. Class IV futures have been enjoying a significant premium relative to Class III because it was being supported by nonfat dry milk. Now that nonfat dry milk is seeing weakness and is trending lower, a lot of that support is going to be taken out of that market. Historically, the market that moves up significantly over a period of time, once it tops out, has a long tail. We could actually see the Grade A nonfat dry milk market decline for a long period of time as we move forward. The June advanced Class 1 price was released at $22.18. This was $2.03 above May and is $4.92 higher than June 2025.

AVERAGE CLASS III PRICES:

3 Month:	$16.93
6 Month:	$17.59
9 Month:	$17.78
12 Month:	$17.75

CHEESE:

Cheese production is running higher than a year ago, keeping a sufficient supply available to the market despite increased demand. Spot milk prices in the Central region range from $6.00 under class to $1.00 over class. The bounce of the block cheese spot price today may be short-lived.

BUTTER:

The spot butter price fell to the lowest level since January 29th. Buyers continue to see plentiful supplies, making it easy to purchase supplies at lower prices. There is no indication as to the level of support for butter.

OUTSIDE MARKETS SUMMARY:

July corn closed down 9.50 cents per bushel at $4.6575, July soybeans closed down 9.75 cents at $11.9975, and July soybean meal closed down $1.40 per ton at $330.90. July Chicago wheat closed down 6.75 cents at $6.6050. August live cattle closed down $1.95 at $245.30. July crude oil is down $5.89 per barrel at $98.26. The Dow Jones Industrial Average is up 543 points at 49,907, with the NASDAQ up 400 points at 26,270.

Wednesday Morning Dairy Market Update - Cash Uncertainty to Dominate Trade

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	4 t o 8 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	1 to 2 Higher

MILK:

The pressure on milk futures Tuesday will keep traders cautious ahead of spot trading Wednesday. Futures prices continue to roll down in Class III contracts as the underlying cash prices provide little reason for traders to be bullish. Strong milk output and the expectations for it to continue leave limited expectations for higher prices. It will be up to the impact of the weather this summer on milk output, potentially tightening the milk supply. However, with increasing cow numbers lower production per cow may still keep milk production higher than a year ago. However, advancements have been made to limit the impact of hot weather on cow comfort.

CHEESE:

The block price falling below the trading range may keep buyers unaggressive with the anticipation of cheese continuing to be offered on the market. They see no need to be aggressive, as a sufficient supply will be available as long as milk production remains strong. Currently, it seems that it would take a black swan event to change the market.

BUTTER:

The decline in butter on Tuesday renewed the possibility of the price revisiting the previous low. The weakness over the past week in nonfat dry milk is concerning, as the price may have reached resistance, and demand has been impacted. If this weakness continues, Class IV futures will trend lower.

Tuesday Closing Dairy Market Update - Milk Futures Decline as Further Premium Is Eliminated

GENERAL OVERVIEW:

Milk futures closed under pressure today following the weakness of spot prices. This further indicates that price potential will be limited for the foreseeable future. Milk production is expected to remain strong throughout the rest of the year.

MILK:

There is nothing fundamentally new in the market. Strong milk production and increasing cow numbers continue to dominate the market. Any increase in demand is being met with sufficient milk supplies. Low prices should cure low prices, but this is not evident in the market. A substantial amount of income for the farm operation continues to come from high calf prices. The threshold for culling cows has been lowered, resulting in more cows remaining in the dairy herd. The April Milk Production report will be released on Friday, and it is expected to follow a similar pattern as it has been. Higher milk output and cow numbers from the previous year. It is uncertain what will change that pattern anytime soon. There is an element in the market that may also limit demand as the year progresses, and that is high prices for food and fuel. This has curtailed restaurant traffic to some extent and could remain that way or curtail further if high prices persist.

AVERAGE CLASS III PRICES:

3 Month:	$16.96
6 Month:	$17.68
9 Month:	$17.88
12 Month:	$17.85

CHEESE:

The decline in cheese prices increased the bearishness in the market. The block cheese price moved below the sideways trading range, with the price at the lowest level since March 13th. The barrel price moved to the lowest level since March 12th. More milk will be moving to the cheese vat as schools close for the summer. This will increase cheese production, providing a sufficient supply to the market, keeping cheese buyers complacent about supply.

BUTTER:

The butter price remains in a downtrend but has remained above the previous low. The action today potentially increases the chance of the price revisiting the low. Manufacturers keep offering butter to the spot market aggressively and are willing to sell at lower prices to move it.

OUTSIDE MARKETS SUMMARY:

July corn closed down 1.75 cents per bushel at $4.7525, July soybeans closed down 3.50 cents at $12.0950, and July soybean meal closed down $2.20 per ton at $332.30. July Chicago wheat closed up 2.75 cents at $6.6725. August live cattle closed up $0.10 at $247.25. July crude oil is down $0.23 per barrel at $104.15. The Dow Jones Industrial Average is down 322 points at 49,364, with the NASDAQ down 220 points at 25,871.

Tuesday Midday Dairy Market Summary - Spot Prices Show Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	4 Lower
SOYBEAN MEAL:	$2.10 Lower
LIVE CATTLE:	$1.35 Higher
DOW JONES:	98 Points Lower
NASDAQ:	59 Points Lower
CRUDE OIL:	$0.87 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 2.25 cents to close at $1.5325 with 15 loads traded. The barrel cheese price declined 4.00 cents, closing at $1.5150 with no loads traded. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are 1-28 cents lower. The butter price declined 4.00 cents to close at $1.60 with 12 loads traded. Grade A nonfat dry milk price declined 1.50 cents to close at $2.2550 with one load traded. Class IV futures are 6-63 cents lower. Butter futures are 0.25 - 2.95 cents lower. Dry whey futures are 0.50 cent lower to 0.20 cent higher. Cheese prices are 0.40 - 2.10 cents lower. This does not bode well for the long-term outlook for milk prices.

Tuesday Morning Dairy Market Update - Milk Futures Show Weakness

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	4 t o 8 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	5 to 7 Higher

MILK:

Overnight trade indicates lower trade Tuesday, ahead of spot trading. Each time it seems support may be developing under the market, it fails to follow through. It has happened numerous times, leaving the market with limited strength even if underlying cash prices are supported. Howver, higher cash prices continue to be short-lived. Manufacturers want to move supplies as quickly as possible rather than build inventory. This may result in a bullish market later in the year if demand increases seasonally. However, continued strong milk production may keep sufficient milk available for bottling and manufacturing, limiting or eliminating any market tightness.

CHEESE:

Steady cheese prices on Monday were viewed as bearish to the market. The inability of cash prices to increase gives the impression supplies are sufficient due to steady cheese production. More milk will be finding its way to the vat as schools close for the summer. This will offset any increase in demand.

BUTTER:

Butter may be experiencing some price support, but that does not mean it will trend higher. It means it may not fall back to the lows. Demand has been improving. There has been a substantial volume of loads traded on he spot market for quite a few weeks, but it is moving to demand and not building inventory to any great extent. This should be positive in the long term.

Monday Closing Dairy Market Update - March Fluid Milk Sales Increased 2.3%

GENERAL OVERVIEW:

Both Class III and Class IV futures were generally lower. No price movement or limited price movement in the underlying cash was viewed as negative by traders.

MILK:

When the market is bullish, steady cash prices are viewed as friendly. When the market is bearish, steady prices are viewed as negative. That is the attitude of today. This does not necessarily mean the market will trend lower from here, but it limits the upside potential. Milk output is higher than a year ago, with sufficient supply available for bottling and manufacturing needs. March fluid milk sales were 2.3 percent higher than in March 2025. Whole milk sales increased 4.8 percent; flavored whole milk increased 13.4 percent; reduced-fat milk decreased 0.7 percent; low-fat milk declined 4.6 percent; fat-free skim milk declined 3.4 percent; flavored fat-reduced milk declined 0.5 percent; buttermilk increased 2.9 percent; with other fluid milk product sales up 13.7 percent. Organic whole milk sales increased 10.3 percent; organic flavored whole milk jumped 31.5 percent; organic reduced-fat milk increased 1.1 percent; organic low-fat milk decreased 8.4 percent; organic fat-free milk sales decreased 2.3 percent; organic flavored fat-reduced milk increased 14.6 percent, with organic sales of other fluid milk products declining 100.0 percent.

AVERAGE CLASS III PRICES:

3 Month:	$17.11
6 Month:	$17.79
9 Month:	$17.96
12 Month:	$17.91

CHEESE:

The negative aspect of the cheese market was that blocks closed spot trading with 10 uncovered offers remaining at the close. This could suggest the price will have limited upside potential. Manufacturers are interested in moving supplies to the market quickly to minimize building inventory.

BUTTER:

The spot butter price closed steady after initially declining during spot trading. Trading was brisk, with 26 loads changing hands. However, there were 15 unfilled bids remaining at the close of spot trading. This suggests the market may have a floor where buyers are interested in buying, but not necessarily that the price will trend higher. It will depend on how aggressive those buyers will want to be.

OUTSIDE MARKETS SUMMARY:

July corn closed up 21.25 cents per bushel at $4.7700, July soybeans closed up 36.00 cents at $12.1300, and July soybean meal closed up $.20 per ton at $334.50. July Chicago wheat closed up 28.75 cents at $6.6450. June live cattle closed down $0.53 at $253.38. June crude oil is up $3.24 per barrel at $108.66. The Dow Jones Industrial Average is up 160 points at 49,686, with the NASDAQ down 134 points at 26,091.

Monday Midday Dairy Market Summary - Spot Prices Hold Steady

OUTSIDE MARKETS SUMMARY:

CORN:	20 Higher
SOYBEANS:	39 Higher
SOYBEAN MEAL:	$2.40 Higher
LIVE CATTLE:	$0.02 Lower
DOW JONES:	77 Points Higher
NASDAQ:	187 Points Lower
CRUDE OIL:	$1.37 Higher

MIDDAY MARKET UPDATE:

Both block and barrel cheese remained unchanged at $1.5550 for both categories. There were no loads traded. The dry whey price increased 0.50 cent to close at 69.00 cents with no loads traded. Even though no price change was seen for cheese, and dry whey increased slightly, Class III futures are mostly lower. Contracts range from 17 cents lower to 5 cents higher. The butter price remained steady at $1.64 with 26 loads traded. Grade A nonfat dry milk slipped 0.25 cent to close at $2.27 with no loads traded. Class IV futures are 6-7 cents lower, with trading activity only taking place in the October and November contracts. Butter futures are 3.22 cents lower to 0.22 cent higher. Dry whey futures are 0.07 cent lower to 0.37 cent higher. Cheese futures are 1.80 cents lower to 0.30 cent higher.

Monday Morning Dairy Market Update - Limited Price Movement Ahead of Spot Trading

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	13 to 15 Higher
Soybean Futures:	25 to 26 Higher
Soybean Meal Futures:	$4 to $5 Higher
Wheat Futures:	19 to 21 Higher

MILK:

There has been little fundamental change in the market, leaving milk futures choppy. This is not expected to change anytime soon. Milk production continues to exceed that of a year ago. Any increase in demand is being readily met without tightening supply. Class IV futures have been holding due to the strength of nonfat dry milk. However, the slight weakness last week could indicate the price may have met resistance and demand may be slowing. The price is not expected to fall apart but may hold at a lower level. There is much uncertainty in the market and it will keep traders preferring short-term trading rather than establishing long-term positions.

CHEESE:

The question is whether the block cheese price will hold support at the bottom of the trading range or if further weakness develops. Cheese demand is good, but production is higher due to increased milk receipts at plants. More milk will be diverted to manufacturing as schools close for the summer.

BUTTER:

The butter price is trying to increase as demand is strong. However, churning is active with plants operating seven days a week. Churning is expected to decrease seasonally as summer weather impacts milk production and butterfat content.

Friday Closing Dairy Market Update - Hay Stocks Decline 3.3% From a Year Ago

GENERAL OVERVIEW:

Both Class III and Class IV futures closed lower for the week. Class III showed greater losses. Grain prices were under pressure from the disappointment that China did not commit to increasing grain purchases. Hay stocks on May 1 were 3.3 percent below a year ago.

MILK:

Both Class III and Class IV milk futures closed lower than at the end of last week. Class III futures were under greater pressure as spot cheese prices declined. Nearby Class III futures continue to roll down as premiums are eliminated from contracts as time moves on. As long as spot prices show limited upside potential, this will continue to take place. Hay stocks on May 1 totaled 23.3 million tons, down 3.3 percent from a year earlier. The state with the largest decline in stocks was Utah, down 41 percent. Wisconsin and New York were 35 percent lower. Texas declined 33 percent, with Colorado down 32 percent. Stocks of hay in West Virginia were 153 percent higher than a year ago. Ohio was 119 percent higher, Kansas was 70 percent higher, and Nevada was 44 percent higher. Grain prices fell over the past two days due to the disappointment that China did not commit to purchasing more grain this year during the Trump visit.

AVERAGE CLASS III PRICES:

3 Month:	$17.20
6 Month:	$17.88
9 Month:	$18.02
12 Month:	$17.95

CHEESE:

For the week, blocks declined 6.75 cents with 24 loads traded. The weekly average price is $1.6035 per pound. Barrels declined 4.50 cents with no loads traded. The weekly average price is $1.5850 per pound. Dry whey declined 1.50 cents with 4 loads traded. The weekly average price is 68.70 cents per pound. The block price fell to the lowest price since April 9 and is at the bottom end of the wide trading range.

BUTTER:

For the week, butter declined 2.50 cents with 99 loads traded. The weekly average price is $1.6385 per pound. Grade A nonfat dry milk declined 1.75 cents with 28 loads traded. The weekly average price is $2.2810 per pound. The weakness of dry whey is a concern, as it gives the impression that the price has reached a plateau. This may pressure Class IV futures if it continues next week.

OUTSIDE MARKETS SUMMARY:

July corn closed down 11.75 cents per bushel at $4.5575, July soybeans closed down 15.50 cents at $11.7700, and July soybean meal closed up $1.80 per ton at $334.30. July Chicago wheat closed down 22.25 cents at $6.3575. June live cattle closed up $1.83 at $253.90. June crude oil is up $4.32 per barrel at $105.49. The Dow Jones Industrial Average is down 537 points at 49,526, with the NASDAQ down 410 points at 26,225.

Friday Midday Dairy Market Summary - Further Weakness Develops

OUTSIDE MARKETS SUMMARY:

CORN:	11 Lower
SOYBEANS:	17 Lower
SOYBEAN MEAL:	$1.50 Higher
LIVE CATTLE:	$1.55 Higher
DOW JONES:	435 Points Lower
NASDAQ:	231 Points Higher
CRUDE OIL:	$3.97 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.50 cents to close at $1.5550 with five loads traded. The barrel cheese price mirrored the block also with a decline of $1.50, closing at $1.5550 with no loads traded. The dry why price gained a penny to close at 68.50 cents with one load traded. Class III futures are 12 cents lower to 2 cents higher with only September posting a gain. The butter price slipped 0.50 cent to close at $1.6400 with 23 loads traded. There were 17 unfilled bids and 8 uncovered offers remaining at the close of spot trading. Buyer interest is good, but they remain unaggressive as sellers continue to offer supplies. Grade A nonfat dry milk slipped 0.25 cent to close at $2.2725 with one load traded. Class IV futures are 2-9 cents higher. Butter futures are 0.47 cent lower to 2.90 cents higher. Dry whey futures are 0.42 cent lower to 0.25 cent higher. Cheese futures are 0.60 cent lower to 0.60 cent higher.

Friday Morning Dairy Market Update - Milk Futures May Find Little Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	4 to 5 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	5 to 6 Lower

MILK:

The decline in cheese prices on Thursday was a surprise and will increase the caution of traders. It seemed the maket had been finding support with spot prices trading in a tight range. However, Thursday's decline indicates support remains elusive. Continued strong milk output and steady cheese production will keep the market supplied. Schools are closing and will close over the next few weeks, with more milk moving to manufacturing. Milk production provides no indication of slowing anytime soon. Trading activity may be light ahead of spot trading as traders are uncertain whether buyers will step up in the spot market to take advantage of the weakness in cheese or if further weakness may take place if buyers hold back.

CHEESE:

Cheese supplies are sufficient for demand, with increasing milk availability keeping manufacturing strong. Plants may move cheese to the spot market as quickly as possible to keep inventory from building.

BUTTER:

Traders will be cautious over whether the butter price has much further upside potential in the near term. The market has yet to break out of an overall downtrend despite the rebound from the lows two weeks ago. Strong butter production keeps the supply readily available to the market and spot trading activity significant.

Thursday Closing Dairy Market Update - Milk Futures Closed Mixed

GENERAL OVERVIEW:

Steady milk production keeps a sufficient supply for manufacturing, leaving little reason for spot prices to increase. Cheese buyers had no interest in supporting spot prices today. Butter was better but did not generate substantial support in futures.

MILK:

Milk output in the Western region remains stable. There have not been large swings in milk production, leaving a sufficient supply on the spot market. This sufficient supply will keep the upside price potential limited. It was hoped that demand would improve and prices would find support. That may yet take place, but certainly not in the near term. The drop in cheese prices today indicates the markets may remain entrenched in a sideways pattern. The May contracts are mostly priced and will move sideways with limited movement after this week. June Class III futures have been decreasing to eliminate the premium they had contained in anticipation of higher prices. June Class IV futures have been holding as the underlying cash is supporting the market.

AVERAGE CLASS III PRICES:

3 Month:	$17.27
6 Month:	$17.93
9 Month:	$18.06
12 Month:	$17.98

CHEESE:

The substantial decline in the block cheese price was unexpected, as the market had been trading in a tight sideways range. The price has moved down near the bottom of the wider trading range that has been in place since mid-March. Class III futures held well despite the decline as traders continue to do day or short-term trading, reducing the need for substantial liquidation. Demand for spot milk from cheese manufacturers varies depending on location and cheese varieties.

BUTTER:

Buyers were aggressive in the spot butter market, but there is little reason for buyers to remain aggressive for an extended period. At least, the price has not moved down to retest the lows. All the uncovered offers from Wednesday were purchased, and more, with only one offer remaining at the close today. However, this does not mean the market will move higher on Friday. It will depend on who needs to take care of business and how aggressive they will be.

OUTSIDE MARKETS SUMMARY:

July corn closed down 13.25 cents per bushel at $4.6750, July soybeans closed down 36.50 cents at $11.9250, and July soybean meal closed down $6.00 per ton at $332.50. July Chicago wheat closed down 17.50 cents at $6.5800. June live cattle closed down $0.73 at $252.08. June crude oil is up $0.99 per barrel at $102.01. The Dow Jones Industrial Average is up 370 points at 50,063, with the NASDAQ up 233 points at 26,635.