Thursday Closing Dairy Market Update - The July Class I Price is $21.33

GENERAL OVERVIEW:

Class III ended the short trading week mixed. Class IV futures closed with double-digit gains. The July advanced Class I price declined from June.

MILK:

Milk futures stabilized for the most part, moving into the extended weekend. Underlying spot prices were mixed, providing some support. This does not indicate a change in trend, but a reprieve from the pressure of the week. Strong milk production will keep both bottling and manufacturing supplied. Spot milk prices have been better than usual for this time of year. The reason is that manufacturing capacity has increased over the past year or more, and plants are reaching out to the spot market for milk to utilize the increased capacity and keep plants efficient. This extra plant capacity is expected to be filled in time, but the current capacity is more than the usual number of patrons or suppliers can fill. Spot prices may increase significantly once schools reopen again and milk moves to bottling for school accounts. Maybe this could tighten the supply enough to increase milk prices. The July advanced Class I price is $21.33, down $0.85 from June, but $2.51 higher than July 2025. The markets will be closed on Friday for the Juneteenth federal holiday.

AVERAGE CLASS III PRICES:

3 Month:	$16.32
6 Month:	$16.97
9 Month:	$17.12
12 Month:	$17.15

CHEESE:

For the week, blocks declined 3.75 cents with 63 loads traded. The weekly average price is $1.4631. Barrels increased by 4.00 cents with no loads traded. The weekly average price is $1.4300. Dry whey remained steady at 68.00 cents with one load traded. The weekly average price is 68.31 cents.

BUTTER:

For the week, butter declined 11.75 cents with 51 loads traded. The weekly average price is $1.5838. Grade A nonfat dry milk declined 14.50 cents with 26 loads traded. The weekly average price is $1.6725. The slight bounce in the dry whey price today was the first increase after 11 consecutive days of declines.

OUTSIDE MARKETS SUMMARY:

July corn closed down 3.50 cents per bushel at $4.1750, November soybeans closed down 6.50 cents at $11.4275 and July soybean meal closed down $3.50 per ton at $301.30. September Chicago wheat closed down 7.25 cents at $6.1400. August live cattle closed down $2.23 at $246.63. August crude oil is down $0.16 per barrel at $75.85. The Dow Jones Industrial Average is up 128 points at 51,621, with the NASDAQ up 496 points at 26,518.

Fluid Milk and Cream - Western U.S. Report 25

California milk production is lighter, but stakeholders report decreases are not dramatic. Year-over-year milk production is up. Some manufacturers' milk intakes are above anticipated volumes, partly due to planned downtime at some manufacturing facilities. Spot loads of milk are available. 

Arizona and New Mexico farm level milk output is lighter. 

Pacific Northwest milk production is steady. Some manufacturers are bringing in spot milk loads. 

Week-to-week farm level milk output is mixed in the mountain states of Idaho, Utah, and Colorado. Idaho handlers note cooler than normal temperatures are keeping cow comfort close to ideal, contributing to a strong spring milking season. Manufacturers report milk output is readily meeting production schedule needs. Class I and III demand is steady. Class II and IV demands vary from stronger to lighter. 

Cream spot loads are available. Cream multiples increased at the bottom end of the AllClasses range. Demand is steady. Condensed skim milk availability is mixed. Demand is steady.

Thursday Midday Dairy Market Summary - Barrels Show Surprising Strength

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	10 Lower
SOYBEAN MEAL:	$2.60 Lower
LIVE CATTLE:	$1.22 Lower
DOW JONES:	181 Points Higher
NASDAQ:	445 Points Higher
CRUDE OIL:	$1.38 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased 0.75 cent to close at $1.45 with 35 loads traded. There have been 63 loads traded during the week. The barrel cheese price increased 4.00 cents to close at $1.46 with no loads traded. Only a buyer showed up looking for a load to purchase. Raising the bid did not get the interest of a seller. The dry whey price increased 0.25 cent to close at 68.00 cents with one load traded. Class III futures are mixed, ranging from 13 cents lower to 5 cents higher. The butter price remained steady at $1.5550 with 20 loads traded. Grade A nonfat dry milk increased 0.50 cent to close at $1.64 with 2 loads traded. This is the first price increase after 11 consecutive days of declines. Class IV futures are 12--29 cents higher on short-covering rather than a change in trend. Butter futures are 1.05 cents lower to 1.22 cents higher. Dry whey futures are steady to 0.27 cent higher. Cheese futures are 0.90 cent lower to 0.80 cent higher. Nonfat dry milk futures are 0.77--2.25 cents higher.

Thursday Morning Dairy Market Summary - Overall Weakness May Continue

OPENING CALLS:

Class III Milk Futures:	2 to 5 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	8 to 10 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	1 to 2 Lower

MILK:

It has not been a good week for milk futures. The weakness of spot prices put substantial pressure on contracts with the most pressure on Class IV futures. The July Class IV contract fell by $1.52 during the first half of the week. The pressure stemmed from the weakness of butter and nonfat dry milk. The nonfat dry milk price has declined $0.15 so far this week. Further weakness is expected Thursday as buyers continue to hold back and purchase at lower prices. Although the spring flush has peaked, milk output remains strong and higher than a year ago. The markets will be closed on Friday for the Juneteenth holiday.

CHEESE:

The block cheese price closed on Wednesday at the lowest level since Feb. 17. This is the time of year prices would generally begin to trend higher as buyers look ahead to upcoming demand and purchase to take advantage of lower prices. This may not be the case this year as higher cheese production is expected to maintain sufficient supply.

BUTTER:

Butter is not expected to see a surge in buying interest. Sellers continue to offer supplies to the spot market. Buyers are purchasing at lower prices with the confidence that supplies will remain plentiful. They see no need to build inventory and pay for storage.

Wednesday Closing Dairy Market Update - Price Support Remains Elusive

GENERAL OVERVIEW:

It was another day of negativity as futures declined in response to lower cash. The Global Dairy Trade Auction trade-weighted average declined 2.8 percent.

MILK:

Dairy futures are in a downdraft and have been unable to find support. Buyers in the spot markets have no reason to step up aggressively to purchase supplies. Manufacturers are moving supplies they produce with the intent of limiting the build-up of inventory. Strong milk output keeps sufficient milk supplies available for manufacturing. Increased milk production compared to a year ago leaves manufacturers and end-users confident that the supply will remain sufficient for demand. The increase in manufacturing capacity has exceeded the volume of milk available, but with the expectation that it will be filled. The Global Dairy Trade auction trade-weighted average declined 2.8 percent from the previous event. There were 12,922 metric tons sold at an average price of $3,979 per metric ton. Anhydrous milk fat declined 1.0 percent to $6,601 per metric ton or $2.99 per pound. Butter declined 2.4 percent to $5,516 per metric ton or $2.50 per pound. Cheddar cheese declined 3.4 percent to $4,471 per metric ton or $2.03 per pound. Lactose gained 4.2 percent to $1,702 per metric ton or $0.77 per pound. Mozzarella cheese declined 5.0 percent to $3,750 per metric ton or $1.70 per pound. Skim milk powder declined 3.6 percent to $3,368 per metric ton or $1.53 per pound. Whole milk powder declined 3.1 percent to $3,589 per metric ton or $1.63 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$16.27
6 Month:	$16.95
9 Month:	$17.11
12 Month:	$17.16

CHEESE:

Spot milk prices made a substantial change for the previous week. Cheese plants are actively purchasing extra milk to keep plants running at capacity. Spot milk prices range from $2.00 below class to $0.50 over class. There are reports that export interest is improving due to the continued attractive U.S. prices.

BUTTER:

The possibility of the price declining to the low on May 21st is possible before the market finds support. The number of uncovered offers remaining at the close today suggests further price weakness. If buyers turn more aggressive, the upside price potential will be limited.

OUTSIDE MARKETS SUMMARY:

July corn closed up 7.25 cents per bushel at $4.2100, July soybeans closed up 2.00 cents at $11.3200, and July soybean meal closed steady at $304.80. July Chicago wheat closed up 16.75 cents at $6.1275. August live cattle closed down $0.35 at $248.85. July crude oil is down $0.43 per barrel at $75.62. The Dow Jones Industrial Average is down 507 points at 51,493, with the NASDAQ down 355 points at 26,022.

Wednesday Midday Dairy Market Update - Butter Falls Back Near the Low

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$0.30 Higher
LIVE CATTLE:	$0.20 Higher
DOW JONES:	129 Points Higher
NASDAQ:	51 Points Higher
CRUDE OIL:	$0.42 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.4575 with one load traded. The barrel cheese price remained unchanged at $1.42, with no loads traded. The dry whey price declined a penny to close at 67.75 cents with no loads traded. The weakness of blocks and dry whey moved Class III futures to double-digit losses in numerous contracts. Prices range from 2 to 17 cents lower. The butter price declined 4.50 cents to close at $1.5550 with 30 loads traded. This moves the price within 3.00 cents of the previous low set on May 21st. There were 5 unfilled bids and 37 uncovered offers remaining at the close. Grade A nonfat dry milk continued the losses with the price declining 3.50 cents to close at $1.6350 with 11 loads traded. Buyers remain active but only at lower prices. Class IV futures are 33 cents lower to 3 cents higher. June is the only contract posting a gain and the one with the most contracts traded. Butter futures are 0.25 -- 4.10 cents lower. Dry whey futures are 0.52 cent lower to 0.25 cent higher. Cheese futures are 0.10 -- 1.60 cents lower. Nonfat dry milk futures are 2.50 cents lower to 1.20 cents higher.

Wednesday Morning Dairy Market Update - Strong Interest in June Class IV Contract

OPENING CALLS:

Class III Milk Futures:	3 to 6 Lower
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	6 to 8 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	7 to 9 Higher

MILK:

Milk futures have been under pressure with Class IV showing the greatest weakness. The decline in nonfat dry milk has resulted in futures falling back to the lowest level since Jan. 23. This does not bode well for milk prices for a time -- or even the rest of the year. There is no slowing of milk output so far this year and it is not expected to decline anytime soon. Price strength is short-lived as the underlying cash prices remain choppy. The June Class IV contract showed unusual trading activity overnight. There were 30 contracts traded and the price increased a penny. It is unusual because Class IV futures rarely trade overnight, and the volume taking place in June is surprising. The June contract is mostly priced and may move very little from now until the Federal Order prices are announced.

CHEESE:

Cheese prices are not expected to move much. Any price strength will be short-lived. Cheese supplies are sufficient for demand with strong production due to milk availability. Buyers have not been purchasing for later demand as they have little concern over supply.

BUTTER:

There is concern that butter price may move back to the low again before buying interest supports the market. Buyers may hold back to wait for sellers to reduce their prices. Nonfat dry milk is expected to show further weakness. 

Tuesday Closing Dairy Market Update - Price Support Remains Elusive

GENERAL OVERVIEW:

Again, it was not a good day for milk futures. Class IV contracts were under substantial pressure, with July falling below $18.00. Nonfat dry milk continued to plummet.

MILK:

There is no telling how much pressure will continue to be seen in the market. Milk output continues to increase as farms expand. More milk production increases milk income and makes up for lower prices. However, it also increases expenses. That has not been a problem as the high calf prices have filled a substantial income gap. High calf prices are expected to remain, and the growth of dairy cow numbers likely will continue. Both domestic and international demand are strong, but not strong enough to tighten the market. It is uncertain as to the level milk prices will need to decline before the continued increase in cow numbers and milk production will decrease.

AVERAGE CLASS III PRICES:

3 Month:	$16.35
6 Month:	$17.03
9 Month:	$17.21
12 Month:	$17.26

CHEESE:

The block cheese price remains in a sideways pattern. There is little fundamental reason for cheese prices to increase. Manufacturers keep moving supplies to the spot market to keep inventory from building. It is interesting that even though inventory has increased during the first half of the year, the growth has not been sufficient to move supplies above those of a year ago. Demand has been good, but it has not tightened supply.

BUTTER:

The weakness of butter could indicate the potential for the price to retest the lows from the end of May. Buyers see no reason to be aggressive. Butter production remains strong with plants operating seven days a week. The cream supply has tightened but remains plentiful.

OUTSIDE MARKETS SUMMARY:

July corn closed down 1.75 cents per bushel at $4.1375, July soybeans closed up 10.75 cents at $11.3000 and July soybean meal closed up $2.80 per ton at $304.80. July Chicago wheat closed up 6.25 cents at $5.9600. August live cattle closed up $5.95 at $249.20. July crude oil is down $4.04 per barrel at $76.71. The Dow Jones Industrial Average is up 329 points at 52,000, with the NASDAQ down 308 points at 26,376.

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Continues to Fall

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$1.50 Higher
LIVE CATTLE:	$4.52 Higher
DOW JONES:	470 Points Higher
NASDAQ:	117 Points Lower
CRUDE OIL:	$5.06 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 0.50 cent to close at $1.47 with one load traded. The barrel cheese price remained unchanged at $1.42 with no loads traded. The dry whey price remained unchanged at 68.75 with no loads traded. Class III futures are mixed, ranging from 11 cents lower to 6 cents higher. The butter price declined 2.50 cents to close at $1.60 with no loads traded. No buyers showed up during spot trading, while 24 loads were offered for sale. This does not bode well for the market. Grade A nonfat dry milk fell 7.50 cents to close at $1.67 with 8 loads traded. The buyers continue to lower bids to purchase supplies at lower prices due to sellers remaining aggressive.

The record price seen in April and early May accomplished the task of reducing demand. Class IV futures are steady to 52 cents lower. Butter futures are steady to 4.00 cents lower. Dry whey futures are steady to 0.02 cent lower. Nonfat dry milk futures are 1.62 -- 6.50 cents lower. Cheese futures are 1.00 cent lower to 0.40 cent higher.

Tuesday Morning Dairy Market Update - Bearish Attitude Persists

OPENING CALLS:

Class III Milk Futures:	2 to 4 Lower
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	7 to 9 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	6 to 7 Higher

MILK:

Milk futures continue to erode as the underlying cash prices remain in a sideways pattern. Strength in the spot market is short-lived. This results in futures eroding any premium that had been held in later contracts. June Class III futures closed below $16.00 the past two days. June Class IV futures moved to the lowest level since April 9. Continued strong milk production and increasing cow numbers will keep milk supplies plentiful.

CHEESE:

Cheese prices seem to have found a level attractive for both buyers and sellers. The volume of loads traded in the spot market Monday indicates not only that cheese supplies are plentiful, but that demand is good. Buyers were willing to purchase the large volume that was offered on the spot market.

BUTTER:

Butter has been unable to hold the gains and keep the market trending higher. The price has now dropped to the lowest level since May 27, eliminating about half the gains seen in late May. Even though butter inventory is below a year ago and international demand remains strong, the market is struggling to find support.

Monday Closing Dairy Market Update - April Dairy Exports Remain Strong

GENERAL OVERVIEW:

Class III futures were lower. Class IV futures took quite a hit with substantial losses in July through September contracts. April dairy exports remained strong.

MILK:

The day was not kind to milk futures, with Class IV contracts showing substantial weakness. Nonfat dry milk has been unable to find support with the price moving to the lowest level since March 11th. The price has fallen $0.55 since it peaked on May 7th. Buyers continue to purchase, but only at lower prices and for immediate demand. Lower prices are expected to continue, leaving buyers unwilling to purchase for inventory. April dairy exports on a milk solids equivalent basis rose 15% from April 2025. This was the seventh consecutive year-over-year increase. Dairy exports for the first quarter have increased 12% compared to the same period last year. The total value of exports for the first four months of the year is 10% higher than in the same period last year. Even with the uncertainty and ongoing shipping disruptions, international demand remains strong due to attractive U.S. prices.

AVERAGE CLASS III PRICES:

3 Month:	$16.39
6 Month:	$17.09
9 Month:	$17.25
12 Month:	$17.30

CHEESE:

Cheese prices are stuck and may move in a tight sideways range for a while. The amount of block cheese traded in the spot market today was substantial and unusual for the volume generally traded in a day. Increased cheese production is being absorbed by demand. April cheese exports were strong, setting a new monthly record at 64,168 metric tons, up 30% from April 2025. Cheese exports have set new records for three consecutive months. Whey exports were 39% higher than a year ago, totaling 52,097 metric tons.

BUTTER:

The butter price dropped back today on limited spot trading. This increases the concern that the market may fall further before finding support. Butterfat exports in April were 74% higher than a year ago, totaling 14,757 metric tons. Nonfat dry milk/skim milk powder exports were 9.0 percent above a year ago at 56,369 metric tons.

OUTSIDE MARKETS SUMMARY:

July corn closed up 2.75 cents per bushel at $4.1550, July soybeans closed up 5.75 cents at $11.1925, and July soybean meal closed up $.70 per ton at $302.00. July Chicago wheat closed up 5.25 cents at $5.8975. August live cattle closed up $2.08 at $243.25. July crude oil is down $3.44 per barrel at $81.44. The Dow Jones Industrial Average is up 469 points at 51,671, with the NASDAQ up 795 points at 26,684.

Monday Midday Dairy Market Summary - Nonfat Dry Milk Continues to Fall

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$0.20 Higher
LIVE CATTLE:	$0.57 Higher
DOW JONES:	673 Points Higher
NASDAQ:	790 Points Higher
CRUDE OIL:	$4.42 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.4750 with 26 loads traded. There were three unfilled bids and five uncovered offers remaining at the close of spot trading. The price initially moved 0.75 cent higher before selling pressure moved the price lower. The barrel cheese price was unchanged at $1.42 with no loads traded. The dry whey price gained 0.75 cent to close at 68.75 cents with no loads traded. Class III futures are 17 cents lower to 1 cent higher. The butter price declined 4.25 cents to close at $1.6250 with one load traded. The one load was traded at the closing price. There were five unfilled bids and 27 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk declined 4.00 cents to close at $1.7450 with five loads traded. The market has not been able to find support and is declining faster than it increased. The price is at the lowest level since March 11. Class IV futures are 5-58 cents lower. Butter futures are 3.25 cents lower to 0.32 cent higher. Dry whey futures are steady with light activity. Cheese futures are 0.10-1.90 cents lower.

Monday Morning Dairy Market Update - Trade Likely Light, Directionless

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Lower
Soybean Futures:	4 to 5 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	8 to 9 Lower

MILK:

There is not much change expected in the market anytime soon. Fundamentals remain similar to what they have been over the past months. The weather has had some impact on milk production, but mainly it has been confined to finishing the spring flush milk volume. Butterfat has been impacted to some extent, but it remains above the level of a year ago. Milk production has remained above last year and is expected to remain higher through the rest of the year. Trading activity is expected to be light ahead of spot trading.

CHEESE:

The upside price potential in cheese is likely limited. Strong cheese output is keeping pace with demand. Plants continue to sell cheese on the spot market to limit building inventory. Cheese production later this year is expected to keep pace with demand without tightening supply.

BUTTER:

The large volume of butter traded on the spot market last week keeps demand satisfied. Plants are avoiding building inventory. Buyers are purchasing for immediate needs and to increase ownership for later demand. Strong butter production is keeping the market balanced. Strong demand should support the price.

Friday Closing Dairy Market Update - Loads and Loads of Butter

GENERAL OVERVIEW:

Butter traded 161 loads this week as prices slipped on average 2.6 cents. Buyers flocked to the table to fill inventory before summer demand hits as inventories usually tend to slip this time of year.

MILK:

Class III futures slowly moved lower this week with the June contract dipping below $16. Dry whey futures traded sideways with less than one cent move from the high settlement to the low. Class IV futures continued to slip lower this week after a disappointing week last week. The USDA released the WASDE report Thursday with expectations of milk production to continue to grow into next year. Luckily, the market seems to be able to consume what we produce despite the growing supply. Exports are strong especially in non-fluid products.

AVERAGE CLASS III PRICES:

3 Month:	$16.48
6 Month:	$17.20
9 Month:	$17.34
12 Month:	$17.38

CHEESE:

For the week, blocks gained 0.25 cent with 21 loads traded. The weekly average price is $1.4815. Barrels fell 6 cents from Monday to Friday with 4 loads traded. However, the weekly average increased from last week due to such a strong start to the week on Monday. The weekly average price is $1.4540. Dry whey increased 1 cent with 4 loads traded. The weekly average price is 67.70 cents.

BUTTER:

For the week, butter decreased 3.25 cents with 161 loads traded. Demand has been substantial in the last few weeks. The weekly average price is $1.6665. Grade A nonfat dry milk declined 11.25 cents with 51 loads traded. The weekly average price is $2.1160.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.00 cent per bushel at $4.1275, July soybeans closed down 1.5 cents at $11.1350, and July soybean meal closed down $0.04 per ton at $301.30. July Chicago wheat closed down 2.25 cents at $5.8450. August live cattle closed down $2.25 at $241.175. July crude oil is down $3.42 per barrel at $84.29. The Dow Jones Industrial Average is up 353 points at 51,202, with the NASDAQ up 79 points at 25,888.

Friday Midday Dairy Market Summary - Butter Buyers Came to the Table

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$0.02 Higher
LIVE CATTLE:	$1.75 Lower
DOW JONES:	343 Points Higher
NASDAQ:	57 Points Higher
CRUDE OIL:	$3.03 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased 0.25 cents to close at $1.4875 with 2 loads traded. The barrel cheese price remained unchanged at $1.42 with no loads traded. The dry whey price closed unchanged at 68.00 cents with no loads traded. Class III futures are mixed at 9 cents lower to 5 cents higher. The butter price increased 2.75 cents to close at $1.6675 with 60 loads traded. Grade A nonfat dry milk decreased 3 cents to close at $1.7850 with 5 loads traded. Class IV futures are steady to 25 cents higher. Butter futures are 0.075 cents lower to 2.15 cents higher. Dry whey futures are 0.375 cents lower to 0.50 cent higher. Cheese futures are 0.4 cent lower to 0.2 cents higher.

Friday Morning Dairy Market Update - Not Much Market Excitement Expected

OPENING CALLS:

Class III Milk Futures:	3 to 8 Higher
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The World Agricultural Supply and Demand report released on Thursday will have no impact on the market Friday. However, the report showed the USDA estimates milk production to increase significantly despite low milk prices. They increase their estimate for this year by 1.0 billion pounds and the same for 2027. If this comes to fruition, the milk production increase this year would be 4.7 billion pounds more than in 2025. Demand will need to increase significantly to keep pace with supply to shift milk prices higher. Trading activity is expected to be light ahead of spot trading Friday, with limited price movement expected.

CHEESE:

The divergence in price between blocks and barrels on Thursday was unusual. The decline in barrels had no direct impact on the Class III milk price. However, it may indicate the overall weakness in the market or the continued inability of prices to see much upside potential.

BUTTER:

Spot trading activity in butter and nonfat dry milk has been substantial this week. There have been 101 loads of butter and 46 loads of nonfat dry milk traded in the spot market. Buyers and sellers have been active; unfortunately, prices have been lower. Nonfat dry milk has seen substantial weakness since its peak, with the price falling faster than it increased

Thursday Closing Dairy Market Update - USDA Raises Its Estimate for Milk Production

GENERAL OVERVIEW:

Class III futures were able to find some footing today, with most contracts closing higher. The bounce in the cheese price triggered some short covering. Very little trading activity took place in Class IV futures. USDA raises milk production for this year and for 2027.

MILK:

Class III milk futures finally showed some strength, but it was minimal relative to the increase in block cheese and dry whey. When spot prices increase, traders will remain cautious as price gains have been short-lived. Class IV futures were higher in some contracts despite the decrease in butter and nonfat dry milk. USDA raised its estimate for milk production for the year to 236.4 billion pounds, an increase of one billion pounds from the May estimate. The estimate for 2027 is 237.0 billion pounds, an increase of one billion pounds. This is the largest increase I have seen from the previous month. Their estimate for Class III milk this year was lowered by $0.40 per cwt to average $16.60 and remained at $17.55 for 2027. The Class IV futures were reduced by $0.60 per cwt to $19.35. The estimate for 2027 remains the same at $18.60. The All-milk price was lowered by $0.55 per cwt. To $20.70. The average All-milk price for 2027 was reduced by $0.05 per cwt to $20.90.

AVERAGE CLASS III PRICES:

3 Month:	$16.53
6 Month:	$17.26
9 Month:	$17.39
12 Month:	$17.42

CHEESE:

USDA reduced its estimate for cheese prices this year to $1.61 per pound on the World Agricultural Supply and Demand report, down 4 cents from the May estimate. The dry whey price was reduced by 0.50 cents to average 66.00 cents. The estimate for 2027 was raised by 1.0 cent to 65.00 cents.

BUTTER:

USDA reduced its butter estimate for this year by 1.50 cents to average $1.74, while the average price remained unchanged at $1.82. Nonfat dry milk was reduced by 7.00 cents to average $1.70. The estimated price for 2027 remained unchanged at $1.5750.

OUTSIDE MARKETS SUMMARY:

July corn closed down 7.25 cents per bushel at $4.1175, July soybeans closed down 8.00 cents at $11.1500 and July soybean meal closed down $.20 per ton at $301.70. July Chicago wheat closed down .75 cent at $5.8675. August live cattle closed up $1.18 at $242.68. July crude oil is down $3.62 per barrel at $86.41. The Dow Jones Industrial Average is up 936 points at 50,845, with the NASDAQ up 640 points at 25,810.

Fluid Milk and Cream - Western U.S. Report 24

California week-to-week milk production varies from steady to lighter. Manufacturers indicate milk output is meeting their needs. Spot loads are available. 

Arizona and New Mexico milk production is lighter. Spot load availability is tighter. 

Pacific Northwest week-to-week milk production is mixed. Manufacturers indicate spot loads are tight, but sufficient volumes of milk are being secured to meet their needs. 

In the mountain states of Idaho, Utah, and Colorado farm level milk output varies from steady to lighter. Spot loads are more available this week with downtime at some processing facilities. Stakeholders note Colorado received some heavy rain and hail, but milk production is not significantly impacted by the weather events. Class I demand remains seasonally lighter and Class II/IV demand is mixed, while Class III demand is steady throughout the region. 

According to Animal and Plant Health Inspection Service, new world screwworm has been detected in New Mexico, as well as Texas. 

Cream availability is meeting demands in the region. Cream multiples decreased for week 24. No changes in condensed skim milk availability or demand are noted.

Thursday Midday Dairy Market Summary - Blocks and Barrels Diverge

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	12 Lower
SOYBEAN MEAL:	$0.80 Higher
LIVE CATTLE:	$1.15 Higher
DOW JONES:	254 Points Higher
NASDAQ:	54 Points higher
CRUDE OIL:	$0.32 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3.00 cents to close at $1.49 with 3 loads traded. The barrel cheese price decreased 5.00 cents to close at $1.42 with 3 loads traded. The weakness of barrels has no impact on the Class III price as it is not part of the price calculation. The dry whey price increased 0.25 cent to close at 68.00 cents with 4 loads traded. Class III futures are 9 cents lower to 15 cents higher. The butter price decreased 1.00 cents to close at $1.64 with 19 loads traded. The price initially increased to $1.6750 before selling became more aggressive. Grade A nonfat dry milk decreased 3.50 cents to close at $1.8150 with 10 loads traded. Surprisingly, butter had no unfilled bids or uncovered offers remaining at the close. In fact, none of the categories in the spot market had unfilled bids or uncovered offers remaining. Class IV futures are steady to 25 cents lower. Butter futures are 1.17 cents lower to 1.82 cents higher. Dry whey futures are steady to 0.62 cent lower. Cheese futures are 0.50 cent lower to 1.70 cents higher. USDA raised its estimate for milk production this year by 1.0 billion pounds and raised its estimate for 2027 by 1.0 billion pounds from the May report. This year is now projected at 236.4 billion pounds, and 2027 is projected at 237.0 billion pounds.

Thursday Morning Dairy Market Update - Weakness Dominates the Market

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures broke lower on Wednesday with the Une contract closing at $16.00. Overnight trade has the June contract trading at $15.93 as a low. As time moves forward, futures contracts continue to roll down, eliminating the premiums they have carried. The underlying cash prices have had limited upside potential, with price bounces being met with yet lower prices. USDA will release its estimates for milk production, milk prices, and dairy product prices for this year and 2027 on the World Agricultural Supply and Demand report. The report is not a market-mover but will reflect price potential as estimated by USDA.

CHEESE:

There is little expectation for cheese prices to see sustained strength anytime soon. Buyers see no need to be aggressive as supplies are sufficient for demand. They see no reason to build inventory at this time.

BUTTER:

There is concern that the butter price may experience greater weakness as sellers continue to offer substantial volumes to the spot market. There is little reason for buyers to be aggressive. There are sufficient supplies to meet demand with increased production keeping up with demand.

Wednesday Closing Dairy Market Update - Fundamentals Remain Bearish

GENERAL OVERVIEW:

Milk futures close under further pressure as spot prices fell. Traders find it difficult to find anything to support the market. The USDA will release the World Agricultural Supply and Demand report tomorrow.

MILK:

Market fundamentals are not friendly, with traders having difficulty trying to find something to be bullish about. Milk production continues to remain strong, although it has past the spring flush peak. Sufficient milk supply is available for all classes and all production needs. Supplies of cheese and butter are readily available to the market.

Spot milk prices changed substantially from last week. Spot prices range from $7.00 under to flat class. Cheese plants have milk readily available, and any extra they need is available for purchase. Most dairy plants are running on full schedules. USDA will release the WASDE report on Thursday. It will report USDA's estimates for milk production, milk prices, and dairy product prices for this year and 2027. The report is not a market-mover but will reflect price potential as estimated by USDA.

AVERAGE CLASS III PRICES:

3 Month:	$16.40
6 Month:	$17.17
9 Month:	$17.34
12 Month:	$17.17

CHEESE:

Cheese production is strong, providing a sufficient supply for demand. This is not expected to decrease anytime soon and will keep the upside price potential limited. Demand will need to improve to keep inventory from building at the plant level. Currently, plants continue to offer supplies on the spot market.

BUTTER:

The weakness of butter over the past two days may indicate that buyers may step back for a short time and purchase at reduced prices. If manufacturers continue to offer supplies to the spot market, there is no reason to be aggressive.

OUTSIDE MARKETS SUMMARY:

July corn closed down .50 cent per bushel at $4.1900, July soybeans closed up 9.25 cents at $11.2300 and July soybean meal closed up $.80 per ton at $301.90. July Chicago wheat closed up 2.25 cents at $5.8750. August live cattle closed up $1.80 at $241.50. July crude oil is up $2.68 per barrel at $90.88. The Dow Jones Industrial Average is down 665 points at 49,919, with the NASDAQ down 509 points at 25,170.

Dairy margins improve as milk production surges

National milk production is expanding as improved profitability supports herd growth. In April, the U.S. dairy herd increased to 9.65 million cows, driving a 2.7% year-over-year increase in milk production. Most major dairy states posted higher cow numbers, though Washington was an exception as cows shifted to nearby states. Production gains in the West were led by Oregon, Idaho and California, which increased by 7.0%, 3.0% and 2.3%, respectively, compared to a year ago.

Margins have strengthened meaningfully, with Dairy Margin Coverage (DMC) income over feed costs rising to $10.54 per cwt in April, the highest level in six months and up $2.73 per cwt since the start of the year. This improvement has been driven by higher all-milk prices, supported by a rally in Class IV futures and persistently low feed costs.

Tight nonfat dry milk (NDM) supplies and strong butter demand are sustaining elevated Class IV prices and driving increased depooling activity. As NDM prices rise, the spread between Class III and Class IV milk has widened significantly, with Class IV holding a premium of more than $5 per cwt, the largest on record. This pricing advantage is incentivizing producers to depool to capture higher returns. The impact is especially evident in California, where Class IV utilization in the pool has dropped sharply from 38.1% in April 2025 to just 2.7% in April 2026.

Profitability

Dairy: Slightly profitable - Neutral 12-month outlook

Improving milk prices and relatively low feed costs, combined with added revenue from elevated beef values, support modest profitability.

Wednesday Morning Dairy Market Update - Markets Show Limited Potential

OPENING CALLS:

Class III Milk Futures:	2 to 4 Lower
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	1 to Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	7 to 9 Higher

MILK:

Tuesday was a dismal day for milk futures. Class IV contracts took the brunt of the weakness due to the large decline in the spot Grade A nonfat dry milk price. Class IV futures had been carrying a substantial discount in deferred contracts in the anticipation that nonfat dry milk would not be able to hold its lofty price. It has not as high prices cure high prices. Butter and cheese seem to have found support, but the support for nonfat dry milk may be substantially lower. Trading activity will be light ahead of spot trading. Traders will wait to see the direction of spot prices before either adding or removing contracts.

CHEESE:

There is little expectation for the current supply and demand situation to change anytime soon. Increased milk supplies moving to cheese vats result in higher cheese output. Increased cheese demand keeps supply from overwhelming the market. However, this keeps cheese prices in a range. Prices are not expected to change much for a while.

BUTTER:

There are always a large number of loads to be sold showing up each day in the spot market. Buying has been impressive as the market has held the gains of recent weeks. However, the volume of butter offered for sale will limit the market's upside price potential.

Tuesday Closing Dairy Market Update - Nonfat Dry Milk Pressures Class IV Contracts

GENERAL OVERVIEW:

It was a rough day for Class IV futures, with contracts declining substantially. The large decline in nonfat milk triggered liquidation in a thinly traded market. The decline in nonfat dry milk was the second-largest decline since the market peak.

MILK:

Sometimes, there have been glimmers of hope that maybe the market has found support in seasonality and demand. Those hopes have been temporary, with the aftermath being more bearish than previously. Two weeks ago, Class IV futures rebounded, looking as if support may have been found. That was eliminated over the past week, with prices plummeting today. The decline in spot Grade A nonfat dry milk was the second-largest one-day decline since the market peaked on May 7. The price has declined 39.75 cents since the record high that day. We are again seeing that the market always falls faster than it increases. The price increased until there was demand destruction, resulting in buyers stepping back. The same holds in all markets as high prices cure high prices. The unusual is taking place in the milk market, as low milk prices are not reducing milk production as is usually the case. Milk production is increasing as cow numbers grow. Revenue other than for milk is fueling the increase in milk output and further expansions.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$17.38
9 Month:	$17.49
12 Month:	$17.49

CHEESE:

Demand is improving and so is supply. It is keeping pace with one another, keeping spot cheese prices in a range. Spot cheese prices remained unchanged, but there were 12 uncovered offers remaining for blocks at the close of trading. Manufacturers want to limit the build-up of inventory and will continue to offer cheese to the market.

BUTTER:

The uptrend in the butter price has stalled and has been moving sideways. This could lead to buyers stepping back as they see sufficient butter supplies. Consistent butter production due to churns operating seven days a week will keep butter readily available to the market.

OUTSIDE MARKETS SUMMARY:

July corn closed up .75 cent per bushel at $4.1950, July soybeans closed down 2.00 cents at $11.1375, and July soybean meal closed down $1.60 per ton at $301.10. July Chicago wheat closed up 2.00 cents at $5.8525. August live cattle closed up $2.98 at $239.70. July crude oil is down $3.10 per barrel at $88.20. The Dow Jones Industrial Average is up 86 points at 50,872, with the NASDAQ down 251 points at 25,679.

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Plummets

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	3 Lower
SOYBEAN MEAL:	$1.10 Lower
LIVE CATTLE:	$1.72 Higher
DOW JONES:	103 Points Lower
NASDAQ:	461 Points Lower
CRUDE OIL:	$3.10 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.4850 and $1.4800 respectively. There were no loads traded. Blocks had 3 unfilled bids and 12 uncovered offers remaining at the close. The dry whey price increased 0.75 cent, closing at 67.75 cents with no loads traded. However, Class III futures are under pressure with prices ranging from 7 to 12 cents lower. The butter price declined 2.50 cents to close at $1.6750 with 19 loads traded. There was one unfilled bid and 34 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk fell 10.25 cents to close at $1.8975 with 7 loads traded. This is the lowest price since March 23rd. Class IV futures have only traded in 2 contract months. July is 87 cents lower, with August 51 cents lower. Butter futures are 0.22 to 6.25 cents lower. Dry whey futures are steady to 1.00 cent lower. Cheese futures are 0.30 -- 1.00 cents lower.

Tuesday Morning Dairy Market Update - Limited Activity Expected Ahead of Spot Trading

OPENING CALLS:

Class III Milk Futures:	4 to 8 Higher
Class IV Milk Futures:	4 to 6 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	Mixed
Soybean Meal Futures:	$2 to $4 Higher
Wheat Futures:	2 to 3 Higher

MILK:

The market is expected to remain choppy. The fundamentals continue to follow the path they have been on for some time. Traders find little to get excited over and continue to try to scalp the market for a short-term profit if they guess correctly. However, with limited volatility, trading volume has been lighter as some traders see limited opportunity. If market fundamentals remain as they are, there will be limited upside potential with futures rolling down as the premium erodes. The June contract is nearly priced and will not move much through the rest of the month. July contracts will move closer to the June over the next few weeks if fundamentals do not change.

CHEESE:

Cheese supplies are sufficient for demand. Schools being closed has moved more milk to the vat. Cheese demand has kept pace with increased production, keeping inventory slightly below a year ago. Historically, inventory should decline during the second half of the year, but strong milk output may limit the decline in inventory.

BUTTER:

The butter price seems to be supported but may have limited upside potential as long as sellers remain aggressive. There were a significant number of uncovered offers at the close of spot trading on Monday. That does not necessarily mean those sellers will be aggressive Tuesday, but it may indicate the upside potential may be limited.

Monday Closing Dairy Market Update - Milk Futures Close Higher

GENERAL OVERVIEW:

Milk futures were higher as traders responded to the increasing butter and cheese prices. Class IV traders focused on the increase in the butter price rather than the weakness of the nonfat dry milk price.

MILK:

The market fundamentals remain much the same as they have over the past weeks and even months. Milk production remains higher than a year ago, with cow numbers increasing. Milk in some areas has surpassed the peak of the spring flush but remains strong. Some areas continue to experience spring flush levels. Cow numbers continue to increase as expansions take place. Substantial income is being realized from beef on dairy calves. It seems that farmers are doing a better job managing cows, as the increase in cow numbers does not suggest a significant number of animals are just being kept around to produce a calf, as some indicate. If that were the case, milk production per cow would not average as much as it did a year ago. It does not appear there will be a huge increase in slaughter anytime soon. Beef prices are not expected to decline anytime soon, which will keep calf prices high. Milk futures were higher today, creating the opportunity for traders to possibly initiate positions for short-term trade.

AVERAGE CLASS III PRICES:

3 Month:	$16.86
6 Month:	$17.59
9 Month:	$17.66
12 Month:	$17.63

CHEESE:

The barrel cheese price moved after eight consecutive days of remaining unchanged. Any movement in the barrel price has no direct influence on milk prices, as it is not a part of the pricing equation. Traders focus on blocks and dry whey for Class III and butter and nonfat dry milk for Class IV.

BUTTER:

The price increase in butter was impressive, given the volume of loads traded. Buyers are willing to support the market but are not willing to be overly aggressive. Retail demand is improving, which is increasing orders for immediate needs. Some buying is surfacing to build inventory for later demand.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.25 cents per bushel at $4.1875, July soybeans closed down 5.75 cents at $11.1575, and July soybean meal closed down $5.80 per ton at $302.70. July Chicago wheat closed up 3.25 cents at $5.8325. August live cattle closed down $4.93 at $236.73. July crude oil is up $0.74 per barrel at $91.28. The Dow Jones Industrial Average is down 81 points at 50,786, with the NASDAQ up 220 points at 25,930.

Monday Midday Dairy Market Summary - Spot Butter Had a Huge Volume of Loads Traded

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	6 Lower
SOYBEAN MEAL:	$4.80 Lower
LIVE CATTLE:	$3.47 Lower
DOW JONES:	40 Points Lower
NASDAQ:	350 Points Higher
CRUDE OIL:	$0.34 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.25 cents to close at $1.4850 with 13 loads traded. The barrel cheese price increased 4.00 cents to close at $1.48 with one load traded. The dry whey price remained unchanged at 67.00 cents with no loads traded. Class III futures are 1 cent lower to 17 cents higher. The butter price increased 0.75 cent to close at $1.70 with 51 loads traded. It certainly was positive to see the price increase despite the volume of loads traded. However, there were 2 unfilled bids and 34 uncovered offers remaining at the close, suggesting limited upside price potential. Grade A nonfat dry milk decreased 4.50 cents to close at 2.00 with 8 loads traded. This is the lowest price since April 7. Class IV futures are 2-33 cents higher. Butter futures are 0.97 cent lower to 1.87 cents higher. Dry whey futures are 0.50 cent lower to 0.50 cent higher. Cheese futures are 0.50 cent lower to 1.20 cents higher.

Monday Morning Dairy Market Update - Light Trade Activity Expected

OPENING CALLS:

Class III Milk Futures:	2 to 4 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Lower
Soybean Futures:	8 to 10 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	1 to 2 Lower

MILK:

Traders will have little to trade on before spot trading. Fundamental news remains the same as it has been for weeks. The market sees limited price direction other than remaining choppy. Supply remains sufficient for demand, leaving the end-users complacent. Milk production remains higher than last year and is expected to remain that way throughout the rest of the year. Some farms continue to add more cows to increase cash flow. Traders will only have daily spot trading to provide volatility this week, as there are no major dairy reports released.

CHEESE:

Cheese prices are expected to remain in a tight range this week with little reason for buyers or sellers to be aggressive. There are sufficient supplies to keep buyers satisfied. Manufacturers want to move supplies to the spot market to keep inventory from building. This should provide support, but limit upside potential.

BUTTER:

The butter price has increased over the past two weeks and is expected to hold, but not see much further upside potential unless an increase in demand requires buyers to be more aggressive. There have been reports of stronger retail demand, but food service demand is not meeting expectations.