GENERAL OVERVIEW:
Class III futures held up well today from the increase in block cheese. The weakness in dry whey partially offset the strength in cheese, limiting the upside potential. The April Dairy Products report showed American cheese production below that of a year ago.
MILK:
There was not much volatility in milk futures today. Class III futures closed mostly higher while Class IV futures closed lower. Each class reflected the movement of underlying cash. The milk supply has tightened somewhat, resulting in spot milk prices being stronger this week. Spot milk is $1.00 under to $2.00 over class this week. There is sufficient milk available for all categories of production, with most being utilized without difficulty. The milk that has been diverted from bottling to manufacturing has not put pressure on the spot market. The potential for milk prices throughout the rest of the year will be determined by demand.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.71 |
| 6 Month: | $17.43 |
| 9 Month: | $17.53 |
| 12 Month: | $17.52 |
CHEESE:
American cheese production in April totaled 490 million pounds, down 1.2 percent from April 2025, according to the Dairy Products report. Italian-type cheese production totaled 556 million pounds, up 4.2 percent from a year ago. Total cheese output totaled 1.27 billion pounds, up 1.7 percent. Dry whey output totaled 76.9 million pounds, up 7.8 percent. Lactose output totaled 92.0 million pounds, down 3.2 percent. Whey protein concentrate production totaled 38.8 million pounds, down 11.0 percent from April 2025.
BUTTER:
Butter production totaled 224 million pounds, up 4.5 percent from April 2025. Nonfat dry milk output totaled 181 million pounds, up 11.4 percent from a year ago. Skim milk powder totaled 35.5 million pounds, up 0.2 percent from a year ago.
OUTSIDE MARKETS SUMMARY:
July corn closed down 7.00 cents per bushel at $4.2450, July soybeans closed down 24.50 cents at $11.2950, and July soybean meal closed down $7.10 per ton at $313.70. July Chicago wheat closed down 5.50 cents at $5.8175. August live cattle closed up $3.68 at $241.53. July crude oil is down $2.98 per barrel at $93.04. The Dow Jones Industrial Average is up 875 points at 51,562, with the NASDAQ down 23 points at 26,831.
