GENERAL OVERVIEW:
At least there was some life in milk futures today. Class III futures increased, correcting from the large declines over the past week. Class IV jumped due to the strength of butter and nonfat dry milk in the spot market. Walmart opens its third milk processing facility.
MILK:
Milk futures posted strong gains as a result of higher underlying cash prices. Traders reacted quickly to liquidate short positions to hopefully retain a profit that may have been realized from the decline in futures. Class IV contracts showed the greatest gains, with June up as much as $0.91 at one point. If the price holds, it will set a new contract high. The strong gains are a welcome sight, but the strength may be limited as the spring flush continues. However, if demand improves, milk prices may regain much of what was lost. More strength will be needed in Class III futures as they fell substantially over the past two weeks. The price range for spot milk has widened this past week as more milk is becoming available. Spot milk prices in the Central region range from $7.00 below Class to flat class.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.70 |
| 6 Month: | $18.30 |
| 9 Month: | $18.29 |
| 12 Month: | $18.12 |
CHEESE:
The March Dairy Products report showed an unexpected decrease in production from March 2025. American cheese output totaled 488 million pounds, which was 2.3 percent below March 2025. Italian-type cheese output totaled 542 million pounds, up 2.3 per cent from a year earlier. Total cheese output reached 1.26 billion pounds, up 1.2 percent from a year earlier. The production of dry whey increased 3.6 percent, totaling 78.7 million pounds. Lactose production totaled 92.1 million pounds, down 6.5 percent, with whey protein concentrate down 6.1 percent at 41.4 million pounds.
BUTTER:
March butter production totaled 232 million pounds, up 1.2 percent from March 2025. Nonfat dry milk output reached 175 million pounds, up 9.9 percent, with skim milk powder up 10.1 percent at 37.4 million pounds. Regular ice cream production output totaled 62.8 million gallons, up 5.1 percent from March 2025.
OUTSIDE MARKETS SUMMARY:
July corn closed down 11.50 cents per bushel at $4.6850, July soybeans closed down 16.75 cents at $11.9475, and July soybean meal closed down $3.10 per ton at $317.30. July Chicago wheat closed down 10.50 cents at $6.1725. June live cattle closed up $0.25 at $253.48. June crude oil is down $6.77 per barrel at $95.50. The Dow Jones Industrial Average is up 612 points at 49,911, with the NASDAQ up 513 points at 25,839.
