Tuesday Closing Dairy Market Update - May Income Over Feed Price Was $10.62

GENERAL OVERVIEW:

Class IV futures came under increasing pressure as the day progressed, posting a day of substantial losses. The May income over feed price was $10.62.

MILK:

Class III milk futures were lower despite a slight increase in the block cheese price and a steady dry whey price. Class IV futures took a beating in response to a slight decline in butter and a significant decline in nonfat dry milk. Some contracts fell over 70 cents, with others over 80 cents by the end of the day. The average soybean meal price for May was released at $338.72 per ton. This was an increase of $8.44 per ton from April and $49.97 per ton higher than May 2025. This was the last price needed to determine income over feed for the Dairy Margin Coverage program. The May income over feed was $10.62. It would seem as if the income over feed price would be lower, but we need to realize this was based on May prices and not current prices. The June Federal Order class prices will be announced on Wednesday.

AVERAGE CLASS III PRICES:

3 Month:	$16.35
6 Month:	$16.97
9 Month:	$17.11
12 Month:	$17.17

CHEESE:

Cheese prices may continue to struggle due to supplies being sufficient for demand. Buyers have been complacent and not willing to build inventory. The upside price potential may be limited in the near term.

BUTTER:

The continued increase in butter and the large jump in the nonfat dry milk price set the stage for higher prices, as buyers may step into the market to purchase to get ahead of increasing prices. Seasonal buying may also be taking place. Increasing temperatures will impact the butterfat level in milk, which could reduce cream supplies.

OUTSIDE MARKETS SUMMARY:

July corn closed down 10.75 cents per bushel at $4.0200, November soybeans closed down 17.25 cents at $11.3900, and July soybean meal closed down $2.30 per ton at $304.70. September Chicago wheat closed down 10.00 cents at $5.7975. August live cattle closed down $2.25 at $243.58. August crude oil is up $1.52 per barrel at $70.75. The Dow Jones Industrial Average is up 307 points at 52,183, with the NASDAQ up 523 points at 25,820.

Tuesday Morning Dairy Market Update - Overnight Activity Points to Higher Prices

OPENING CALLS:

Class III Milk Futures:	6 to 10 Higher
Class IV Milk Futures:	10 to 15 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	1 to 2 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	Mixed

MILK:

Milk futures reacted to the strength in the underlying cash on Monday, and the overnight trade suggests further strength is likely Tuesday. Again, it is interesting that there was significant volume in the June contract overnight, as Tuesday is the last day of trading and it is a cash-settled contract. The June Federal Order prices will be announced on Wednesday. Class IV futures have increased substantially over the past three days in reaction to the strength in the butter and nonfat dry milk prices. Traders may be cautious ahead of spot trading as the recent rally may be met with greater selling interest.

CHEESE:

Cheese prices are expected to remain sideways as the fundamentals show continued strong cheese production due to increased milk output. Buyers have not been interested in purchasing to build inventory as they continue to see sufficient cheese supplies.

BUTTER:

It is uncertain whether the recent strength in butter is the result of an increase in demand or seasonal buying interest to increase ownership for later demand. Hopefully, both are true, and further strength will be seen.

Monday Closing Dairy Market Update - Milk Futures Post a Strong Close

GENERAL OVERVIEW:

Milk futures posted another strong day, with most of the strength in Class IV contracts. The increase in butter and nonfat dry milk prices provided strong support. The May Agricultural Prices report showed an increase in all prices used in calculating income over feed.

MILK:

Milk futures had a very strong day in response to the increase in spot prices. Block cheese only had a minor increase, but strength also came from the increase in the butter price. Class IV futures showed the greatest gain. The August contract gained about $1.80 over the past 3 days. The July, October, and November contracts are back above $19.00. It seems like seasonal buying is kicking in, which is driving the price higher. Seasonal buying does not seem to have begun in cheese, and maybe it will not to any great extent. However, historically butter leads the direction of the market and may trigger more aggressive buying interest in cheese. The May Agricultural Prices report showed an average corn price of $4.48 per bushel, up $0.17 from April, but down $0.18 from April 2025. The average premium/supreme hay price was $247.00 per ton, up $13.00 per ton from April, but down $30.00 per ton from April 2025. The All-milk price was $21.30 per cwt, up $0.50 from April, but down $0.10 from a year earlier. The average soybean meal price will be released on Tuesday, providing the final price to calculate income over feed for the Dairy Margin Coverage program. Other prices for comparison are the average soybean price at $11.60, up $0.40 from April and $1.20 per bushel higher than a year ago.

AVERAGE CLASS III PRICES:

3 Month:	$16.10
6 Month:	$16.85
9 Month:	$17.04
12 Month:	$17.12

CHEESE:

Cheese prices may continue to struggle due to supplies being sufficient for demand. Buyers have been complacent and not willing to build inventory. The upside price potential may be limited in the near term.

BUTTER:

The continued increase in butter and the large jump in the nonfat dry milk price set the stage for higher prices, as buyers may step into the market to purchase to get ahead of increasing prices. Seasonal buying may also be taking place. Increasing temperatures will impact the butterfat level in milk, which could reduce cream supplies.

OUTSIDE MARKETS SUMMARY:

July corn closed down 10.75 cents per bushel at $4.0200, November soybeans closed down 17.25 cents at $11.3900, and July soybean meal closed down $2.30 per ton at $304.70. September Chicago wheat closed down 10.00 cents at $5.7975. August live cattle closed down $2.25 at $243.58. August crude oil is up $1.52 per barrel at $70.75. The Dow Jones Industrial Average is up 307 points at 52,183, with the NASDAQ up 523 points at 25,820.

Monday Midday Dairy Market Summary - Nonfat Dry Milk Jumps

OUTSIDE MARKETS SUMMARY:

CORN:	14 Lower
SOYBEANS:	19 Lower
SOYBEAN MEAL:	$4.50 Lower
LIVE CATTLE:	$2.32 Lower
DOW JONES:	293 Points Higher
NASDAQ:	459 Points Higher
CRUDE OIL:	$1.68 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 0.25 cent to close at $1.4225 with 7 loads traded. The price initially declined to $1.4075 before buying interest became more aggressive, moving the price back to positive territory. The barrel cheese price remained unchanged at $1.4800 with no loads traded. The dry whey price remained unchanged at 68.50 with no loads traded. Class III futures are 1 cent lower to 14 cents higher. The butter price increased 5.00 cents to close at $1.7000 with 2 loads traded. There were 3 unfilled bids and 26 uncovered offers. This would suggest there is limited upside potential. Grade A nonfat dry milk jumped 10.00 cents to close at $1.6975 with 22 loads traded. There were 10 unfilled bids and 10 uncovered offers remaining at the close. Class IV futures are 5-96 cents higher. Butter futures are 1.77 -- 4.50 cents higher. Dry whey futures are 0.50 -- 0.75 cent higher. Cheese futures are 0.90 cent lower to 1.50 cents higher. Nonfat dry milk futures are 1.50 -- 7.67 cents higher. USDA will release the May Agricultural Prices report today, providing most of the prices used to calculate income over feed for the Dairy Margin Coverage program.

Monday Morning Dairy Market Update - Significant Trading Activity, Higher Prices Overnight

OPENING CALLS:

Class III Milk Futures:	8 to 12 Higher
Class IV Milk Futures:	10 to 15 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	7 to 9 Lower
Soybean Futures:	9 to 11 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	5 to 6 Lower

MILK:

Traders were active in overnight trade. Futures were higher in the Class III contracts, except for June. Tuesday is the last day to trade June futures and options and the June Federal Order prices will be announced Wednesday. Surprisingly, there were 129 contracts traded in June overnight, as it is a cash-settled contract and mostly priced by the trade. July had over 200 contracts traded, with August over 100. Other contract months also had trading activity. Class IV futures had activity in the September and October contracts. USDA will release the May Agricultural Prices report Monday afternoon. This report will provide most of the prices used in calculating income over feed for the Dairy Margin Coverage program.

CHEESE:

Cheese futures traded overnight in the July and August contracts with July showing most of the activity. The block cheese price is expected to remain choppy. Cheese is readily available to the market with buyers not aggressively picking up supplies to build inventory.

BUTTER:

Butter and nonfat dry milk futures were traded overnight. Contracts were higher as traders seem to think seasonal buying may surface. Nonfat dry milk showed significantly higher prices in the July through December contracts. The upside price potential is uncertain.

Friday Closing Dairy Market Update - Class IV Futures Post a Strong Close for the Week

GENERAL OVERVIEW:

Milk futures closed higher with numerous contracts limit up. The strength in the butter price was a surprise and fueled the buying interest in Class IV futures.

MILK:

Class III milk futures bounced slightly after making new contract lows earlier in the week. Class IV futures posted strong gains during the second half of the week, fueled by the increase in the butter price. This does not mean that this is a change in trend. Higher spot prices will likely increase selling interest to take advantage of the higher prices. Spot milk supplies are readily available, but demand from plants that have manufacturing capacity has provided support for prices, with some spot milk purchased at a premium to class.

AVERAGE CLASS III PRICES:

3 Month:	$16.08
6 Month:	$16.64
9 Month:	$16.93
12 Month:	$17.00

CHEESE:

For the week, blocks declined 3.00 cents with 48 loads traded. The weekly average price is $1.4210. Barrels increased 2.00 cents with 2 loads traded. The weekly average price is $1.4710. Dry whey increased 0.50 cent with 3 loads traded. The weekly average price is $68.10. This did not provide traders with much to hang their hats on for market direction.

BUTTER:

For the week, butter increased 9.50 cents with 68 loads traded. The weekly average price is $1.5470. Grade A nonfat dry milk decreased 4.25 cents with 36 loads traded. The weekly average price is $1.5935. The butter price increased by 12.50 cents during the second half of the week, providing some hope that the low has been reached and greater buying interest may be surfacing as we move toward the second half of the year.

OUTSIDE MARKETS SUMMARY:

July corn closed down 2.00 cents per bushel at $4.1275, November soybeans closed down 0.75 cent at $11.5625, and July soybean meal closed down $1.20 per ton at $307.00. September Chicago wheat closed down 11.75 cents at $5.8975. August live cattle closed down $1.40 at $245.83. August crude oil is down $1.89 per barrel at $70.03. The Dow Jones Industrial Average is down 45 points at 51,876, with the NASDAQ down 61 points at 25,298.

Friday Midday Dairy Market Update - Butter Price Jumps

OUTSIDE MARKETS SUMMARY:

CORN:	Unchanged
SOYBEANS:	2 Lower
SOYBEAN MEAL:	$2.20 Lower
LIVE CATTLE:	$0.02 Lower
DOW JONES:	189 Points Lower
NASDAQ:	221 Points Lower
CRUDE OIL:	$2.53 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 2.00 cents to close at $1.4200 with 9 loads traded. The barrel cheese price gained 0.25 cent to close at $1.4800 with 2 loads traded. The dry whey price gained 1.50 cents to close at 68.50 cents with 2 loads traded. Class III futures are 1 cent lower to 12 cents higher. The nearby June contract shows the only loss. The butter price jumped 9.50 cents to close at $1.6500 with 9 loads traded. There were 9 unfilled bids and no uncovered offers remaining at the close. Grade A nonfat dry milk gained 1.75 cents to close at $1.5975 with no loads traded. Class IV futures are 4-54 cents higher. Butter futures are 3.05 cents lower to 7.50 cents higher. The lower prices are in the March and April contracts. Dry whey futures are 0.25 cent lower to 0.75 cent higher. Cheese futures are 0.30 cent lower to 0.90 cent higher. Nonfat dry milk futures are steady to 4.00 cents higher.

Friday Morning Dairy Market Update - Milk Futures Remain Unable to Find Support

OPENING CALLS:

Class III Milk Futures:	2 to 5 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	6 to 7 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	8 to 10 Lower

MILK:

The major reports for the dairy industry are now history for another month. The milk production report showed strong milk output and increasing cow numbers, continuing the bearish trend. The cold storage report was neutral, indicating good demand as inventory has not increased much despite strong production. The livestock slaughter report showed dairy cattle slaughter maintaining a slower pace. Traders have little else to focus on outside of daily spot trading. There is little reason for traders to get excited over the market for higher prices.

CHEESE:

Cheese inventory increased in May, but at a much slower pace than usual for that time of year. This keeps cheese inventory somewhat in line with a year ago despite higher cheese output. This indicates good demand. However, strong domestic and international demand has not been good enough to tighten supply.

BUTTER:

Butter has had a nice bounce over the past two days, and there is a good chance a further gain will be seen Friday, as there were quite a few unfilled bids at the close of spot trading on Thursday. However, the strength may not continue for very long. Higher prices may bring sellers back into the market more aggressively.

Thursday Closing Dairy Market Update - May Inventory Increased Less Than Usual

GENERAL OVERVIEW:

Class III futures closed mixed while Class IV futures showed strong gains. Milk futures moved in line with cash and made more sense than they did on Wednesday. The May Cold Storage report was about as expected. May dairy cattle slaughter was less than expected.

MILK:

The trading volume was significantly lower than on Wednesday. Steady cheese prices did not provide much incentive for traders. Some areas see milk output over the spring flush peak, while others have seen milk production declining steadily, yet output remains higher than a year ago. Hotter weather is expected in many areas of the country shortly, which will impact milk production and component levels. Whether this could eventually tighten supplies remains to be seen. Higher cow numbers and increased milk production may minimize the impact on the overall supply. For the near term, expect the market to remain bearish. The May Livestock Slaughter report was released, showing dairy cattle slaughter totaling 191,700 head. This was 23,400 less than April and 5,100 head less than in May 2025. This was the lowest May slaughter since 2007. It was also the lowest monthly slaughter since June 2024.

AVERAGE CLASS III PRICES:

3 Month:	$16.06
6 Month:	$16.67
9 Month:	$16.88
12 Month:	$16.95

CHEESE:

The May Cold Storage report showed American cheese inventory increasing by 3.3 million pounds from April, totaling 816.9 million pounds. This is 2% below a year ago. Swiss cheese stocks increased 1.2% from April, totaling 24.9 million pounds, up 10% from a year earlier. Other cheese stocks increased 7.8%, totaling 581.2 million pounds and nearly the same level as a year ago. Total cheese inventory increased 12.3% to a level of 1.423 billion pounds. This was 1% below April 2025.

BUTTER:

Butter futures showed substantial gains in response to the higher spot price on Wednesday and today. Strong buying interest could continue on Friday if buyers who did not accomplish business today turn more aggressive. Butter inventory during May increased 27.7%, totaling 335.6 million pounds. This was 8% below May 2025.

OUTSIDE MARKETS SUMMARY:

July corn closed up 7.75 cents per bushel at $4.1475, November soybeans closed up 22.00 cents at $11.5700, and July soybean meal closed up $4.60 per ton at $308.20. September Chicago wheat closed up 5.50 cents at $6.0150. August live cattle closed up $0.70 at $247.23. August crude oil is up $1.10 per barrel at $71.44. The Dow Jones Industrial Average is up 72 points at 51,921, with the NASDAQ down 118 points at 25,359.

Fluid Milk and Cream - Western U.S. Report 26

Overall, milk production in the West is seasonally low but sufficient to meet current production demands. California contacts indicate milk volumes are better than anticipated. 

New Mexico and Arizona milk volumes are holding steady. 

The mountain states of Idaho, Utah and Colorado have more than enough milk to meet production needs. Contacts indicate spot volumes of milk are available. 

Pacific Northwest milk volumes are good and meeting manufacturing needs. 

Class I production is light with more milk designated for Class II and IV use. Class II demand is strong and some manufacturers are taking in spot volumes of milk and cream to keep busy production schedules. Class III demand is steady. Class IV demand is steady to strong. 

Contacts mention a surplus of cream in some states, but they are able to move the cream to both Class II and Class IV facilities within the region. Cream multiples moved lower at the bottom of the range and stayed the same at the top. Condensed skim demand is stronger than previous weeks. Some buyers are having difficulty securing loads for Class II and Class III use.

Thursday Midday Dairy Market Summary - Butter Price Pushes Higher

OUTSIDE MARKETS SUMMARY:

CORN:	5 Higher
SOYBEANS:	14 Higher
SOYBEAN MEAL:	$2.80 Higher
LIVE CATTLE:	$1.20 Higher
DOW JONES:	158 Points Higher
NASDAQ:	127 Points Lower
CRUDE OIL:	$1.32 Higher

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.4400 and $1.4775 respectively. There were no loads traded in either category. There were 4 unfilled bids and 4 uncovered offers remaining for blocks at the close of spot trading. There was no interest in buying or selling in barrels. The dry whey price decreased 1.50 cents to close at 67.00 cents with no loads traded. This is the lowest dry whey price since June 8. Class III futures are 6 cents lower to 7 cents higher. The butter price increased 3.00 cents to close at $1.5550 with 21 loads traded. There were 21 unfilled bids remaining with 5 uncovered offers, suggesting further upside price potential. Grade A nonfat dry milk increased 0.50 cent to close at $1.5800 with 7 loads traded. Class IV futures are 3 cents lower to 38 cents higher. Butter futures are steady to 6.05 cents higher. Dry whey futures are 0.50 cent lower to 0.40 cent higher. Cheese futures are 0.30 cent lower to 1.00 cent higher. Nonfat dry milk futures are 0.75 - 3.30 cents higher. USDA will release the May Cold Storage and the May Livestock Slaughter report this afternoon.

Thursday Morning Dairy Market Update - Cold Storage and Livestock Slaughter Report Today

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk futures continue to struggle. Strength in spot prices has been short-lived. After a bounce higher in spot prices, they have generally fallen back to lower prices. The strength in spot cheese and butter Wednesday resulted in lower milk futures prices. There is little reason for spot prices to increase as supplies are sufficient for demand, and production remains strong. Cow numbers continue to increase, as improved genetics and management increase the longevity of cows in the herd. USDA will release the May Livestock Slaughter report Thursday, which is expected to show slaughter following along seasonal lines.

CHEESE:

The block cheese price has increased over the past 2 days, but is expected to have limited further upside potential. Buyers will reach a threshold of what they are willing to pay in a market that has sufficient supply. USDA will release the May Cold Storage report Thursday afternoon, and it should show inventory near the levels of a year ago.

BUTTER:

There was limited interest in buying and selling during spot trading, but one buyer was aggressive, bidding the price up 5.00 cents to purchase a load. The higher price may increase seller interest Thursday as butter supplies remain plentiful and manufacturers do not want to build inventory at the plant level.

Wednesday Closing Dairy Market Update - There May Be Little Relief From Low Milk Prices

GENERAL OVERVIEW:

Milk futures closed mostly lower despite the increase in cheese and butter prices. It is uncertain as to why this divergence took place. USDA will release the May Cold Storage and the May Livestock Slaughter reports on Thursday.

MILK:

Spring flush has ended in all areas of the country, but milk production continues to exceed year-earlier levels. This will continue unless there is a significant impact from hot weather throughout the summer. However, advancements have been made with cooling systems that minimize some of the impact of hot weather. Unless there is a Black Swan event, milk prices are expected to remain depressed throughout the rest of the year. USDA will release the May Livestock Slaughter report on Thursday. Slaughter is expected to be in line with the usual level for this time of year, even though cow numbers increased in May according to the milk production report. The May Cold Storage report will also be released, indicating whether demand has kept pace with the production of dairy products.

AVERAGE CLASS III PRICES:

3 Month:	$16.04
6 Month:	$16.63
9 Month:	$16.84
12 Month:	$16.93

CHEESE:

Demand for spot milk from cheese plants is variable. Not because of slower demand, but it is tied to production schedules. Spot milk prices this week range from $4.50 under class to $1.50 over class. Milk receipts from farms have not diminished, but increased manufacturing capacity has resulted in variable interest in spot milk. This may result in cheese production outpacing demand during the time of year when inventory generally decreases.

BUTTER:

The strength of butter was surprising, as only one load was traded. Sellers have been aggressive in the past, and the higher price took place due to the lack of selling interest. Traders did not react to the price increase, with most butter futures contracts lower.
Traders anticipate the bounce in the price will be short-lived.

OUTSIDE MARKETS SUMMARY:

July corn closed down 2.75 cents per bushel at $4.0700, November soybeans closed down 6.75 cents at $11.3500, and July soybean meal closed up $0.70 per ton at $303.60. September Chicago wheat closed down 1.00 cent at $5.9600. August live cattle closed up $0.53 at $246.53. August crude oil is down $3.34 per barrel at $69.87. The Dow Jones Industrial Average is up 102 points at 51,849, with the NASDAQ down 110 points at 25,477.

Wednesday Midday Dairy Market Summary - Futures Decline Despite Higher Cash

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	6 Lower
SOYBEAN MEAL:	$1.30 Higher
LIVE CATTLE:	$0.85 Higher
DOW JONES:	118 Points Higher
NASDAQ:	122 Points Lower
CRUDE OIL:	$2.73 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 2.50 cents to close at $1.4400 with 26 loads traded. There were 3 unfilled bids and 1 uncovered offer remaining. The barrel cheese price increased 1.75 cents to close at $1.4775 with no loads traded. The dry whey price remained unchanged at 68.50 with no loads traded. Class III futures are 19 cents lower to 2 cents higher, with most contracts posting losses. One would think that futures would be higher with the strength, but traders think it will be short-lived. The butter price increased 5.00 cents to close at $1.5250 with 1 load traded. There were 19 unfilled bids and 5 uncovered offers remaining at the close. Grade A nonfat dry milk decreased 2.50 cents to close at $1.5750 with 11 loads traded. Class IV futures are 9 cents lower to a penny higher. Butter futures are 2.50 cents lower to 2.00 cents higher. Dry whey futures are steady to 0.25 cent lower. Cheese futures are steady to 1.70 cents lower. Nonfat dry milk futures are 0.40 cent lower to 0.42 cent higher.

Wednesday Morning Dairy Market Update - Unusual Overnight Trading Activity

OPENING CALLS:

Class III Milk Futures:	4 to 7 Lower
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

There was unusual trading activity in the overnight markets. The July, August, and September Class III contracts traded, which is not unusual, but traded activity also took place in the January through June 2027 contracts, which is unusual. The same number of contracts traded in each 2027 contract, suggesting one trader was selling the strip, and one was buying. Unfortunately, prices were unchanged to 25 cents lower. Class IV futures had one contract traded in nearby June. This is unusual as the June contract has mostly been priced and generally moves very little until the class prices are announced. Being a cash-settled market, it is surprising that the price would trade 23 cents lower. This certainly does not look positive for the day.

CHEESE:

There is little anticipation of much strength in spot cheese anytime soon. Any price bounce has been short-lived, with the pattern expected to continue. Buyers are not building inventory, and sellers want to keep inventory from building.

BUTTER:

Manufacturers are selling what they are producing at whatever price they can get. Buyers see this and continue lowering bids, with no need to purchase aggressively. Current demand is being met with limited interest in building inventory for later demand. Price support remains elusive. 

Tuesday Closing Dairy Market Update - The REAL Butter Act Has Been Introduced

GENERAL OVERVIEW:

Mixed trading activity dominated milk futures. Trading activity was exceptionally strong in the July and August Class III futures contracts. The REAL Butter Act has been introduced to the U.S. House of Representatives.

MILK:

Traders focused on the July and August Class III contracts today, with over 1,000 traded in July and over 800 in August. It has been some time since trading volume was this large in contracts. The movement of spot prices did not provide much to generate the level of trading interest in Class III contracts. The May Milk Production report had little impact on the market as increased production and higher cow numbers were anticipated. In the top 24 states, there were only 5 states that showed a decrease in milk production. Pennsylvania declined 1.9%; Vermont declined 0.9%; both Virginia and Washington declined 0.8%; and New Mexico declined 0.4%. Kansas showed the largest increase with a gain of 21.2% and was followed by Oregon with a gain of 7.1%. All other states gained less than 5.0%. The REAL Butter Act has been introduced to the U.S. House of Representatives. The Act is designed to force synthetic dairy products to disclose their laboratory origins. Tony Wied, a Republican representing Wisconsin's 8th Congressional District, has initiated the bill. This targeted federal bill aims to establish strict, mandatory labeling requirements for synthetic, laboratory-grown butter products, which are a direct attack on American dairy farmers.

AVERAGE CLASS III PRICES:

3 Month:	$16.13
6 Month:	$16.76
9 Month:	$16.95
12 Month:	$17.01

CHEESE:

The bounce in the cheese price is not expected to last or at least is not expected to see much upside potential. There is little indication of a tight market, which leaves buyers limited in their need to purchase cheese for upcoming demand. Any upcoming demand is expected to be met with sufficient cheese supplies due to strong cheese production.

BUTTER:

The butter price has fallen back further than expected and may continue with further weakness. Sellers want to move supplies at whatever price they can get. Buyers continue to hold back, remaining complacent.

OUTSIDE MARKETS SUMMARY:

July corn closed down 1.75 cents per bushel at $4.0975, November soybeans closed up .25 cent at $11.4175, and July soybean meal closed up $3.10 per ton at $302.90. September Chicago wheat closed down 10.50 cents at $5.9700. August live cattle closed down $1.35 at $246.00. August crude oil is down $0.65 per barrel at $73.21. The Dow Jones Industrial Average is down 46 points at 51,667, with the NASDAQ down 580 points at 25,587.

Tuesday Midday Dairy Market Summary - Butter and Nonfat Dry Milk Remained Under Pressure

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$2.20 Higher
LIVE CATTLE:	$0.96 Lower
DOW JONES:	136 Points Higher
NASDAQ:	345 Points Lower
CRUDE OIL:	$0.75 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 2.50 cents to close at $1.4150 with 5 loads traded. The barrel cheese price remained unchanged at $1.4600 with no loads traded. The dry whey price increased 0.50 cent to close at 68.50 cents, with one load traded. Class III futures are mixed, ranging from 8 cents lower to 6 cents higher. The butter price decreased 5.50 cents to close at $1.4750 with 15 loads traded. This is the lowest price since Jan. 21. There were more unfilled bids than uncovered offers remaining at the close. Grade A nonfat dry milk decreased 1.50 cents to close at $1.6000 with two loads traded. Class IV futures are mixed, ranging from 12 cents lower to 6 cents higher. Butter futures are steady to 3.25 cents lower. Dry whey futures are 0.45 cent lower to 0.25 cent higher. Cheese futures are 0.80 cent lower to 0.80 cent higher. Nonfat dry milk futures are 2.10 cents lower to 1.50 cents higher.

Tuesday Morning Dairy Market Update - Buyers Find No Reason For Concern

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The bearishness of the May Milk Production report had already been factored in. There was little reason to put further pressure on milk futures after the report was released. The report showed that milk production remains strong and milk prices are not going to increase anytime soon. The trend continues for increased milk production and higher cow numbers. This may be the pattern for the rest of the year. Low milk prices have not yet increased culling, as farmers do not find it necessary to cull for cash flow. Beef prices continue to remain high, and so will calf prices.

CHEESE:

Rather than finding support at the low prices, buyers continue to hold back and purchase at lower prices. Sellers continue to offer supplies on the spot market rather than build inventory in an abundant market. Higher milk production means increased cheese output. Demand has been keeping pace, but not strong enough to tighten the supply.

BUTTER:

The market has eliminated the gains seen in late May and is now at risk of falling back to the lows last seen in January. Churning is active, and supplies are sufficient. Manufacturers continue to sell butter on the spot market to manage inventory.

May Milk Production (24 states) up 2.4 Percent

May Milk Production up 2.4 Percent        

Milk production in the 24 major States during May totaled 19.8 billion pounds, up 2.4 percent from May 2025. April revised production, at 19.2 billion pounds, was up 2.8 percent from April 2025. The April revision represented a decrease of 1 million pounds or less than 0.1 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,143 pounds for May, 9 pounds above May 2025.   The number of milk cows on farms in the 24 major States was 9.23 million head, 182,000 head more than May 2025, and 7,000 head more than April 2026.   

May Milk Production in the United States up 2.3 Percent  

Milk production in the United States during May totaled 20.6 billion pounds, up 2.3 percent from May 2025.  Production per cow in the United States averaged 2,128 pounds for May, 8 pounds above May 2025.  The number of milk cows on farms in the United States was 9.67 million head, 184,000 head more than May 2025, and 10,000 head more than April 2026. 

Monday Closing Dairy Market Update - May Milk Production Up 2.3 Percent

GENERAL OVERVIEW:

Class III futures close under pressure with numerous contracts posting double-digit losses. Class IV futures close mixed. The May Milk Production report came near expectations. U.S. milk production increased 2.3 percent, with cow numbers up 10,000 head.

MILK:

Unfortunately, some spot prices declined, putting further pressure on most milk futures contracts. The July Class III contract closed below $16.00 for the first time, and another new contract low. Subsequent months continue to roll down as spot prices remain weak. USDA released the May Milk Production report today. The top 24 states showed milk production up 2.4 percent from May 2025, totaling 19.8 billion pounds. Milk production per cow averaged 2,143 pounds, which was 9 pounds above a year ago. Cow numbers increased by 7,000 head from April. Milk production in the U.S. increased 2.3 percent over a year ago, with output at 20.6 billion pounds. Milk production per cow was 8 pounds higher than in May 2025. Cow numbers increased by 10,000 head. The nation's dairy herd was 184,000 head more than in May 2025, totaling 9.67 million head. This will continue the market bearishness.

AVERAGE CLASS III PRICES:

3 Month:	$16.13
6 Month:	$16.76
9 Month:	$16.94
12 Month:	$17.00

CHEESE:

The block cheese price declined to the lowest level since February 13th. Buyers continue to hold for lower prices, seeing that sellers want to move supplies at whatever price they can get. They have no desire to hold cheese in anticipation that prices might strengthen later in the year. Strong milk production and increased cheese output leave little reason for cheese prices to see much upside potential. Plants are not interested in paying for storage with little benefit to hold inventory.

BUTTER:

The spot butter price has declined to the lowest level since May 22nd. The brief period of gain in late May has now been erased. It is uncertain where the price may find a bottom or if it will follow the path of the clock cheese price. There has recently been a slight increase in demand from the food service industry, but also a slight slowing in retail demand.

OUTSIDE MARKETS SUMMARY:

July corn closed down 6.00 cents per bushel at $4.1150, November soybeans closed down 1.25 cents at $11.4150, and July soybean meal closed down $1.50 per ton at $299.80. September Chicago wheat closed down 6.50 cents at $6.0750. August live cattle closed up $0.73 at $247.35. August crude oil is down $1.77 per barrel at $74.08. The Dow Jones Industrial Average is up 201 points at 51,766, with the NASDAQ down 351 points at 26,167.

Monday Midday Dairy Market Summary - Spot Prices Show Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	4 Lower
SOYBEAN MEAL:	$1.30 Lower
LIVE CATTLE:	$0.25 Higher
DOW JONES:	189 Points Lower
NASDAQ:	25 Points Lower
CRUDE OIL:	$2.00 Lower

MIDDAY MARKET UPDATE:

The block cheese price fell 6.00 cents to close at $1.39 with 8 loads traded. The barrel cheese price remained unchanged at $1.46 with no loads traded. The dry whey price remained unchanged at 68.00 cents with no loads traded. Class III futures came under pressure with contracts 1-27 cents lower. The July contract is trading below $16.00. The butter price declined 2.50 cents to close at $1.53 with 23 loads traded. Grade A nonfat dry milk declined 2.50 cents to close at $1.6150 with 16 loads traded. Class IV futures are mixed from 15 cents lower to 20 cents higher. The largest gain took place in the nearby June contract on just one load traded. It was likely a market order as the contract is mostly priced and should move very little until the Federal Order prices are released.

Butter futures are 1.37 cents lower to 1.97 cents higher. Dry whey futures are steady, with trading activity only taking place in the July contract. Cheese futures are 0.30--2.60 cents lower. Nonfat dry milk futures are 0.90 cent lower to 0.70 cent higher. The May Milk Production report will be released today. I estimate milk production to be 2.4% higher than in May 2025. I estimate cow numbers to increase by 6,000 head from April.

Monday Morning Dairy Market Update - May Milk Production Report to be Released

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	2 to 3 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	4 to 6 Lower

MILK:

Trading activity took place in all Class III contracts through the end of the year, with prices mixed. Trading volume was light, but it is unusual to see activity spread over multiple months after a three-day weekend. Traders see limited price direction from the spot market. USDA will release the May Milk Production report Monday afternoon. I estimate milk production to be 2.4 percent higher than in May 2025. I estimate cow numbers to increase by 6,000 head from April.

CHEESE:

Cheese prices are expected to be choppy with little direction. Cheese production is strong, and milk is available. This combination provides sufficient cheese to the market, limiting the need for buyers to be concerned about supply.

BUTTER:

Butter futures took a hit last week following the weakness of the spot price. Cream supplies have tightened somewhat, but the supply remains sufficient for demand. Manufacturers continue to offer supplies on the spot market to avoid building inventory.

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.