GENERAL OVERVIEW:
Class III futures were able to show strength in nearby contracts at the close of trading, but nothing provided a catalyst for strong buying or selling. Class IV futures ended another strong day with significant gains. The income over feed price for April was $10.54.
MILK:
Class IV traders found more direction for a short-term trade from the increase in butter and nonfat dry milk prices. It may not be a change in direction, but it provides sufficient volatility for traders to hopefully make a profit from scalping the market. There is limited expectation for the market to trend higher anytime soon. The average soybean meal price for April was released this morning at $330.28 per ton. This was an increase of $4.13 per ton from March and was $35.25 per ton higher than April 2025. The income over feed price for April was $10.54. This was $0.97 higher than March. There will be no Dairy Margin Coverage payment.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.73 |
| 6 Month: | $17.31 |
| 9 Month: | $17.52 |
| 12 Month: | $17.52 |
CHEESE:
It was surprising that the block cheese price remained steady in light of the volume of loads traded on the spot market. The price is at a level where both buyers and sellers are comfortable. Cheese needs to come to the spot market to keep inventory from building at the plant level. The buyers were ready to purchase rather than step back to see if the sellers would lower their offers.
BUTTER:
Butter was able to eke out another minor gain, keeping support under the market. Traders responded with strong buying in butter futures. It may be possible that the trend has changed. However, there is no shortage of supply in the market.
OUTSIDE MARKETS SUMMARY:
July corn closed down 2.75 cents per bushel at $4.4400, July soybeans closed down 6.00 cents at $11.8075, and July soybean meal closed down $3.30 per ton at $326.50. July Chicago wheat closed down 1.75 cents at $6.0875. August live cattle closed up $1.55 at $240.60. July crude oil is up $5.14 per barrel at $92.50. The Dow Jones Industrial Average is up 46 points at 51,079, with the NASDAQ up 114 points at 27,087.
