GENERAL OVERVIEW:
Class IV futures showed greater weakness as the day progressed. The weakness in nonfat dry milk seemed to be the focus rather than the weakness of butter. Cheese and butter exports reached the highest level ever as international demand remains strong.
MILK:
Class III futures were mixed as the steady cheese and dry whey prices provided little for traders to go on. However, Class IV futures came under pressure as the day progressed, with traders focusing on the weakness of nonfat dry milk. There is concern that the market may have reached a threshold. The lower U.S. prices compared to world prices should keep international demand significantly higher than a year ago. Dairy exports for milk solids equivalent increased 8.0 percent in March, resulting in the sixth consecutive month of year-over-year growth. March exports for butter and cheese were very strong. Both cheese and butterfat exports in March set new single-month records. There has been concern that the conflict with Iran may have an impact on dairy exports, but if there are any, it may be seen when the April report is released.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.38 |
| 6 Month: | $18.00 |
| 9 Month: | $18.08 |
| 12 Month: | $17.97 |
CHEESE:
Cheese exports set a one-month record in March with 63,435 metric tons exported. This was 28.7 percent above March 2025. Year-to-date exports are up 23.2 percent from the same period last year. Lactose exports totaled 37,233 metric tons, up 3.4 percent from a year ago. Year-to-date exports are 2.2 percent higher. Whey exports totaled 51,869 metric tons, up 10.8 percent from a year ago, with year-to-date exports up 9.9 percent. Whey protein concentrate +80 exports totaled 6,005 metric tons, down 31.8 percent from March 2025, with year-to-date exports down 23.3 percent.
BUTTER:
March butterfat exports showed record exports at 17,074 metric tons. This was 109.9 percent above March 2025, with year-to-date exports up 93.2 percent compared to the same period a year ago. Nonfat dry milk/skim milk powder exports totaled 59,522 metric tons, down 7.8 percent from a year ago, with year-to-date exports up 4.9 percent. Whole milk powder exports totaled 3,844 metric tons, up 47.9 percent, with year-to-date exports up 59.6 percent compared to the same period in 2025.
OUTSIDE MARKETS SUMMARY:
July corn closed up 4.00 cents per bushel at $4.7525, July soybeans closed up 5.00 cents at $12.1300, and July soybean meal closed up $5.10 per ton at $324.80. July Chicago wheat closed up 15.00 cents at $6.3400. June live cattle closed up $0.50 at $249.40. June crude oil is up $3.01 per barrel at $98.43. The Dow Jones Industrial Average is up 95 points at 49,707, with the NASDAQ up 27 points at 26,274.
