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.
