Friday Closing Dairy Market Update - A Strong Close to the Week

GENERAL OVERVIEW:

It was another very strong day for milk futures. Higher spot prices supported futures prices. Butter had a large volume of trades for the week. Prices used in the calculation of income over feed decreased on the June report.

MILK:

The milk markets had a very strong end to the week. The August and September Class III contracts pushed above $17.00. Class IV futures closed the week above $16.00 in contracts through February. This may set the stage for further gains next week, provided buyers remain aggressive in the cash market. The June Agricultural Prices report was released today. The average corn price was $4.28 per bushel, down $0.20 from May and down $0.19 per bushel from June 2025. The premium/supreme hay price was $239.00 per ton, down $8.00 per ton from May and down $5.00 per ton from a year ago. The All-milk price was $21.10 per cwt, down $0.20 from May and down $0.20 per cwt from June 2025. The soybean meal price will not be released until Monday. That is when the income over feed price can be calculated for the Dairy Margin Coverage program. Other prices to take note of are that the average soybean price was $11.30 per bushel, down from $11.60 in May and up from $10.40 in June 2025. The alfalfa hay price was $198.00 per ton, up $3.00 per ton from May and up $21.00 per ton from June 2025.

AVERAGE CLASS III PRICES:

3 Month:	$16.79
6 Month:	$17.27
9 Month:	$17.35
12 Month:	$17.43

CHEESE:

For the week, blocks decreased 3.50 cents with 43 loads traded. The weekly average price was $1.56. Barrels decreased 8.25 cents with one load traded. The weekly average price is $1.5710. Dry whey increased 1.25 cents with 10 loads traded. The weekly average price is 67.60 cents.

BUTTER:

After a week of substantial volatility, the butter price only increased 0.75 cent from the previous week. Trading activity was heavy with 113 loads changing hands. The weekly average price is $1.4470. Grade A nonfat dry milk was the star of the week with the price increasing 15.75 cents, with 70 loads traded. The weekly average price is $1.4675.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.50 cents per bushel at $4.6400, November soybeans closed down 1.25 cents at $11.8750, and December soybean meal closed down $1.60 per ton at $321.20. September Chicago wheat closed down 24.25 cents at $6.3925. October live cattle closed down $0.20 at $227.25. September crude oil is up $1.08 per barrel at $84.67. The Dow Jones Industrial Average is up 277 points at 52,485, with the NASDAQ up 252 points at 25,374.

Friday Midday Dairy Market Summary - Spot Prices Show Strength

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$4.10 Lower
LIVE CATTLE:	$0.95 Higher
DOW JONES:	301 Points Higher
NASDAQ:	213 Points Higher
CRUDE OIL:	$1.25 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 4.00 cents to close at $1.5725 with 15 loads traded. The barrel cheese price remained unchanged at $1.5475 with no loads traded. The dry whey price increased 1.00 cent to close at $0.6925 with two loads traded. Class III futures are 3-53 cents higher, with September posting the greatest gain. The butter price increased 3.50 cents to close at $1.5150 with five loads traded. Only six uncovered offers were remaining at the close of spot trading. This is the least amount of uncovered offers we have seen for a while. Grade A nonfat dry milk increased 6.00 cents to close at $1.5600 with 17 loads traded. This is the highest price since June 30. Class IV futures are 18-31 cents higher. Butter futures are steady to 6.25 cents higher. Dry whey futures are 0.50 -- 0.75 cent higher. Cheese futures are 0.20 cent lower to 5.00 cents higher. Nonfat dry milk futures are 0.50 -- 4.40 cents higher. The June Agricultural Prices report will be released today.

Friday Morning Dairy Market Update - Traders Cautious of Butter Strength

OPENING CALLS:

Class III Milk Futures:	2 to 6 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	5 to 6 Lower

MILK:

Class III futures may remain choppy with limited upside potential due to the recent weakness of cheese prices. Futures have moved back to the lows, but uncertainty over price strength will keep traders cautious. The rebound in Class IV futures over the past three days will need to be supported by further strength in butter and nonfat dry milk or prices will fall back. Trading activity may be mixed ahead of spot trading. The USDA will release its June Agricultural Price report Friday. It will contain most of the prices used in calculating income over feed for the Dairy Margin Coverage program. The average soybean meal price will not be released until Monday.

CHEESE:

Spot cheese prices are expected to see further weakness as buyers hold back. They see sufficient supplies available and little need to purchase and pay for storage. Buying may continue on an as-needed basis.

BUTTER:

Either the 9-cent weakness in butter earlier in the week was an aberration or the strength on Thursday, with the price increasing by 9 cents, was an aberration. The market Friday may provide a clearer indication of which it was. There continues to be a large volume of unfilled bids at the close of spot trading each day. The market may have limited upside potential unless the selling interest subsides. 

Thursday Closing Dairy Market Update - Class IV Futures Close Sharply Higher

GENERAL OVERVIEW:

Despite the weakness in spot cheese prices, the strength in dry whey supported Class III futures, allowing them to close higher. Class IV futures had a very strong day on the surprising strength of butter and nonfat dry milk.

MILK:

It was a positive day, rising out of the recent sea of despair. It is too early to tell whether prices are low enough to generate continued buying interest or if the strong buying interest in butter and nonfat dry milk is a response to immediate needs and prices will settle back once immediate demand is satisfied. Prices certainly are low enough to entice buyers, but it may be too early to generate sustained buying interest. There has been no change fundamentally in the market, with milk production remaining stronger than a year ago. It will be up to demand to increase more than usual over the next few months to maintain current price levels or support higher prices. Some processing facilities are assessing when the best time is to schedule maintenance due to strong milk volumes being received despite milk production being impacted by higher temperatures. USDA will release the June Agricultural Prices report showing most of the prices used in calculating income over feed for the Dairy Margin Coverage program.

AVERAGE CLASS III PRICES:

3 Month:	$16.43
6 Month:	$16.88
9 Month:	$17.06
12 Month:	$17.19

CHEESE:

Retail demand for cheese is steady to strong. However, food service demand is lighter than usual for this time of year. The demand from the food service industry may not increase much due to higher fuel prices and the cost of goods and services. Spot cheese prices may see further weakness before buyers step back up to purchase more aggressively.

BUTTER:

The large increase in the spot butter price today reversed the 9-cent decline seen on Tuesday. The price may have difficulty maintaining the strength if the sellers turn aggressive again. There were a large number of uncovered offers at the close of spot trading today, suggesting the supply of butter is heavy with manufacturers wanting to sell supplies.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.25 cents per bushel at $4.6850, November soybeans closed down 4.00 cents at $11.8875, and December soybean meal closed down $0.70 per ton at $322.80. September Chicago wheat closed up 2.75 cents at $6.6350. October live cattle closed up $3.48 at $227.45. September crude oil is down $0.49 per barrel at $83.97. The Dow Jones Industrial Average is up 614 points at 52,208, with the NASDAQ up 679 points at 25,122.

Fluid Milk and Cream - Western U.S. Report 31

Milk production in the West region is seasonally low, but several areas note a recent increase in farm milk output after some recent hot weather. The Central Valley of California milk volumes are down in July compared to June of this year, but year over year production is higher than 2025. Some contacts in California are concerned with scheduling downtime for regular maintenance with milk volumes this high. 

Arizona and New Mexico milk production is steady with no noted changes to volumes. 

The Pacific Northwest has no notable changes in milk production. 

The mountain states of Idaho, Utah and Colorado have seasonally steady milk production. 

Cream demand in the region is growing. Cream multiples increased at both ends of the range this week. Contacts indicate multiples could continue to rise if demand doesn't change. Demand for Class I milk is growing in some areas as schools prepare for the fall semester. Class II - IV demand remains unchanged in the region. Butter churns are receiving contracted volumes of cream as Class II facilities are taking the majority of spot cream. Condensed skim milk is readily available in the region.

Thursday Midday Dairy Market Summary - Butter Price Jumps

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$0.40 Higher
LIVE CATTLE:	$2.87 Higher
DOW JONES:	557 Points Higher
NASDAQ:	642 Points Higher
CRUDE OIL:	$0.50 Lower

MIDDAY MARKET UPDATE:

The block cheese price slipped 1.25 cents to close at $1.5325 with two loads traded. The barrel cheese price declined $0.50 to close at $1.5475 with one load traded. The dry whey price increased 1.25 cents to close at 68.25 cents with one load traded. This offset the decline of the block cheese price. Class III futures are mixed, ranging from 13 cents lower to 14 cents higher. The July contract is the lowest as the price adjusted to the weekly AMS prices. The butter price jumped 9.00 cents to close at $1.4800 with five loads traded. There were five unfilled bids and 83 uncovered offers. Grade A nonfat dry milk increased 5.25 cents to close at $1.5000 with eight loads traded. Class IV futures are 6-66 cents higher. Butter futures are 0.72 cent lower to 5.95 cents higher. Dry whey futures are steady to 0.35 cent lower. Cheese futures are 0.80 cent lower to 1.20 cents higher. Nonfat dry milk futures are 1.30 -- 4.95 cents higher.

Thursday Morning Dairy Market Update - Class III Milk Futures May Struggle

OPENING CALLS:

Class III Milk Futures:	4 to 8 Lower
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	2 to 3 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	19 to 23 Higher

MILK:

Class III milk futures are back down near the lows and may have a difficult time rebounding. Spot prices will need to find support and trend higher before traders will buy into the market with any confidence. The market will need to prove itself before buying interest is generated. Traders continue to scalp the market rather than take any long-term positions. Milk receipts at the plant level have increased slightly after cows recover somewhat from the hot weather. There is sufficient milk available for bottling and manufacturing demand.

CHEESE:

Cheese prices may show further weakness as buyers remain unaggressive. As long as sellers offer supplies on the spot market, buyers will hold for lower prices. There is no concern over the tightness of cheese supplies. Even as bottling increases for school accounts, sufficient milk supplies will remain for manufacturing.

BUTTER:

It is uncertain whether the butter price has found support. It was good to see the price increase a penny on Wednesday despite the heavy volume of loads traded. However, the large amount of offers remaining at the close of spot trading suggests butter supplies are plentiful with limited upside price potential.

Wednesday Closing Dairy Market Update - Spot Milk Prices Increase Slightly

GENERAL OVERVIEW:

Class III futures closed with minor losses as the weakness of cheese had been factored in. Class IV futures posted double-digit gains due to the strength in butter and nonfat dry milk.

MILK:

Milk receipts are increasing as temperatures have returned more to normal. Some cows may not bounce back completely depending on their stage of lactation, but milk output is expected to remain above a year ago. The calendar will turn to August by the end of this week. The demand for milk from bottlers is expected to increase as they begin to prepare to fill the school pipeline. Some schools will reopen for the new school year by the middle of the month. This will not tighten the milk supply but will reduce some of the milk available to the cheese vat. This is seasonal and may not have much impact on the availability of supplies or market prices. The AMS weekly prices were not as expected by traders, with the July milk futures adjusting. The July Class III price decreased 12 cents, and the July Class IV price increased 11 cents after the report. The federal order class prices will be released on Aug. 5.

AVERAGE CLASS III PRICES:

3 Month:	$16.35
6 Month:	$16.83
9 Month:	$17.02
12 Month:	$17.15

CHEESE:

Spot milk is less available following the recent hot weather. This has the spot milk price in the Central Region ranging from $1.00 to $5.00 over class. This is likely to increase as more milk will move to bottling in the next few weeks. Cheese production over the past week was steady to stronger.

BUTTER:

It was interesting to see the volume of butter purchased on the spot market today. Buyers were willing to purchase much of what was offered and needed to bid higher to get it. I reported incorrectly on the midday comments that there were no unfilled bids or uncovered offers remaining at the close of spot trading. There were 24 unfilled bids and 67 uncovered offers remaining.

OUTSIDE MARKETS SUMMARY:

December corn closed down 8.75 cents per bushel at $4.7175, November soybeans closed down 27.25 cents at $11.9275, and December soybean meal closed down $4.30 per ton at $323.50. September Chicago wheat closed down 1.75 cents at $6.6075. October live cattle closed up $1.80 at $223.98. September crude oil is up 5.53 per barrel at $84.79. The Dow Jones Industrial Average is down 1,153 points at 51,594, with the NASDAQ down 434 points at 24,443.

Wednesday Midday Dairy Market Summary - Butter Finally Shows Strength

OUTSIDE MARKETS SUMMARY:

CORN:	9 Lower
SOYBEANS:	30 Lower
SOYBEAN MEAL:	$5.70 Lower
LIVE CATTLE:	$2.00 Higher
DOW JONES:	818 Points Lower
NASDAQ:	242 Points Lower
CRUDE OIL:	$5.38 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.00 cent to close at $1.5450 with 13 loads traded. The barrel cheese price declined 2.50 cents to close at $1.5525 with no loads traded. The dry whey price increased 1.50 cents with 3 loads traded. So far, this has had little impact on Class III futures, with contracts ranging from 7 cents lower to 2 cents higher. The butter price increased 1.00 cent to close at $1.3900 with 78 loads traded. The price initially increased 3.75 cents before slipping back. No unfilled bids and no uncovered offers were remaining at the close of spot trading. All of the uncovered offers from Tuesday were absorbed. This puts the butter market in a better position for upside price potential. Grade A nonfat dry milk increased 2.75 cents to close at $1.4475 with 26 loads traded. There were no unfilled bids or uncovered offers remaining at the close. Class IV futures are 25 cents lower to 13 cents higher. Butter futures are 0.02 lower to 0.75 cent higher. Dry whey futures are unchanged to 0.30 cent higher. Cheese futures are 1.20 cents lower to 0.20 cent higher. Nonfat dry milk futures are 0.95 -- 1.82 cents higher.

Wednesday Morning Dairy Market Update - Milk Futures May Bounce

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	12 to 14 Lower
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	2 to 4 Lower

MILK:

Milk futures may rebound somewhat as traders who sold contracts may liquidate those positions to take a profit. Most of the trading activity remains short-term as the uncertainty of price movement keeps traders cautious. Hot weather has impacted milk output, but buyers in the spot market are not concerned about the milk supply. USDA estimates significantly higher milk output in 2027. Dairy processors expect continued strong milk production and are either expanding or building new facilities. The trend of higher milk output and increased cow numbers remains intact at the present time.

CHEESE:

Cheese prices may see further weakness following a similar pattern as the previous time the market fell back from the high. Buyers may hold back as they see the willingness of sellers to move supplies.

BUTTER:

There are indications cream supplies are tightening. Other Class II manufacturers are utilizing higher volumes of cream, limiting the availability of supply to churns. This has some manufacturers turning to the spot market for supplies. Tighter cream supplies have increased cream prices. This should support the butter price at some point.

Tuesday Closing Dairy Market Update - Another Bearish Day

GENERAL OVERVIEW:

The weakness continued in milk futures due to declines in cheese, butter, and dry whey. Buyers had no interest in being aggressive and are letting sellers reduce their offers before they are willing buyers. There is no indication that demand has decreased.

MILK:

Class III futures have now eliminated the gains realized since the beginning of July. It is as if the price increases should never have taken place. However, it did provide an opportunity to establish downside price protection on the bounce. It will be much more difficult to generate buying interest from traders going forward. The market will need to prove itself before traders would get excited to buy into the market for the longer term. Class IV futures continue to decline, nearly reaching the lows established in late December 2025. The August through February contracts are below $17.00 and below the Class III contracts for the same months.

AVERAGE CLASS III PRICES:

3 Month:	$16.43
6 Month:	$16.89
9 Month:	$17.06
12 Month:	$17.18

CHEESE:

The block cheese price follows a similar pattern as in early May, but it is falling faster than it did at that time. Buyers have not seen the need to become aggressive. There is no concern over supply, and buyers are not interested in purchasing to build inventory ahead of what is necessary.

BUTTER:

The butter price cannot find a bottom. The price dropped to the lowest level since January 16. Buyers are not concerned about the supply of butter as sellers want to move supplies. Rather than build inventory and speculate on stronger prices through the end of the year, they keep selling to manage inventory. The volume of unfilled bids at the end of the spot trading period suggests there is much more to come to the market with a limited upside price potential.

Tuesday Midday Dairy Market Summary - Spot Prices Fall

OUTSIDE MARKETS SUMMARY:

CORN:	7 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$0.20 Lower
LIVE CATTLE:	$2.17 Higher
DOW JONES:	189 Points Lower
NASDAQ:	25 Points Lower
CRUDE OIL:	$3.48 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 4.00 cents to close at $1.5550 with 13 loads traded. The barrel cheese price declined 5.25 cents to close at $1.5775 with no loads traded. The dry whey price declined 2.50 cents to close at 65.50 cents with 4 loads traded. Class III futures are 27 cents lower to 1 cent higher with July showing the only gain. The butter price fell 9.00 cents to close at $1.3800 with 8 loads traded. There were 8 unfilled bids and 84 uncovered offers remaining at the close of spot trading. Surprisingly, the sellers want to move supplies at continually lower prices. The only bright spot was Grade A nonfat dry milk with a gain of 2.00 cents, with 2 loads traded. Class IV futures are 4-20 cents lower. Butter futures are 0.50 -- 7.50 cents lower. Dry whey futures are 0.05 -- 0.75 cent lower. Cheese futures are steady to 2.40 cents lower. Nonfat dry milk futures are 1.55 -- 2.60 cents higher.

Tuesday Morning Dairy Market Update - Further Weakness Expected

OPENING CALLS:

Class III Milk Futures:	5 to 10 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	4 to 6 Higher
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	5 to 7 Lower

MILK:

Overnight trading activity indicates further pressure may be put on milk futures ahead of spot trading. There is concern the block cheese prices will see further weakness as buyers hold back to see how aggressive sellers will be. Strong milk output is expected to continue keeping sufficient milk available for bottling and manufacturing. Expansions continue to take place and cow numbers are increasing. The recent weakness in calf prices may have little impact on the desire to increase cow numbers. The overall cattle market remains tight, and the recent weakness in beef prices is expected to be temporary. The U.S. border will be reopening for cattle imports from Mexico beginning in late August, but those imports will not overwhelm the market anytime soon. Expansion of dairy processing facilities continues as milk production is expected to trend higher.

CHEESE:

The block cheese price may see further weakness. Only sellers showed up during spot trading on Monday. Buyers may hold back to see how aggressive they will be. The supply of cheese is expected to remain readily available for demand as milk production remains strong.

BUTTER:

It is uncertain where the butter price will find support. The large amount of uncovered offers remaining at the close of spot trading on Monday suggests further weakness unless the sellers will not offer the supply at a lower price. If not, it would indicate the upside price potential is limited for the time being. 

Monday Closing Dairy Market Update - More Heifers Than a Year Ago

GENERAL OVERVIEW:

Milk futures closed lower again in response to the weakness of dry whey, butter, and block cheese. Class III futures are not far from eliminating all of the gains since July 6. Class IV futures have moved back to the levels last seen in January. The Cattle Inventory report showed more heifers.

MILK:

After the milk production report last week, there is no real reason for milk futures to remain higher or carry much extra premium. Milk production remains above a year ago with cow numbers increasing. The biannual Cattle Inventory report showed dairy cow numbers as of July 1 at 9.650 million head. This was 2% higher than July 2025. Replacement heifers totaled 3.600 million head, up 3% from July 2025. The percentage of replacement heifers to milk cows is 37.3&. This is historically low, but slightly higher than July 2025 and July 2023. Even though more cattle are bred with beef on dairy, sufficient heifers are being produced to maintain and grow the dairy herd. Cows are increasing in longevity as improved genetics and management practices are increasing productivity.

AVERAGE CLASS III PRICES:

3 Month:	$16.56
6 Month:	$17.03
9 Month:	$17.17
12 Month:	$17.28

CHEESE:

Buyers of cheese may hold back after immediate demand has been filled, milk production remains strong, and inventory remains stable. The concern that had developed due to the impact of hot weather seems to have been digested, and determined that milk supplies will not tighten. The concern is that cheese prices may follow the pattern of the last time prices were at these levels. Prices fell back significantly as buyers became less aggressive.

BUTTER:

The butter price has now bypassed the low of June 23rd and declined to the lowest level since January 22nd. Surprisingly, buyers have not increased their desire to build inventory at the low level. The cold storage report showed inventory in June was 7% below a year ago. Seasonal buying should increase at some point.

OUTSIDE MARKETS SUMMARY:

December corn closed down 13.50 cents per bushel at $4.7400, November soybeans closed down 39.75 cents at $12.1375 and December soybean meal closed down $11.10 per ton at $324.10. September Chicago wheat closed down 18.00 cents at $6.6000.

October live cattle closed down $3.73 at $218.78. September crude oil is down $7.49 per barrel at $81.82. The Dow Jones Industrial Average is up 263 points at 52,210, with the NASDAQ down 44 points at 24,932.

Monday Midday Dairy Market Summary - Butter Falls Further

OUTSIDE MARKETS SUMMARY:

CORN:	14 Lower
SOYBEANS:	42 Lower
SOYBEAN MEAL:	$11.30 Lower
LIVE CATTLE:	$2.57 Lower
DOW JONES:	200 Points Higher
NASDAQ:	157 Points Lower
CRUDE OIL:	$6.77 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.5950 with no loads traded. The buyers stepped back with only sellers offering 4 loads during the spot trading period. The barrel cheese price remained unchanged at $1.6300 with no loads traded. The dry whey price remained unchanged at 68.00 cents with no loads traded. Class III futures are steady to 32 cents lower. The butter price continued its weakness, with the price declining 3.75 cents to close at $1.4700 with 17 loads traded. There were 19 unfilled bids and 52 uncovered offers remaining at the close. Sellers continue to have butter to sell, which will keep pressure on the market. Grade A nonfat dry milk declined 0.25 cent to close at $1.40 with 17 loads traded. Class IV futures are 16 cents lower to 4 cents higher. Butter futures are steady to 4.77 cents lower. Dry whey futures are 0.20 cent lower to 0.50 cent higher. Cheese futures are 3.30 cent lower to 0.10 cent higher. Nonfat dry milk futures are 0.50 cent lower to 1.10 cent higher.

Monday Morning Dairy Market Update - Traders May Wait for Cash Direction

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	13 to 14 Lower
Soybean Futures:	31 to 34 Lower
Soybean Meal Futures:	$7 to $9 Lower
Wheat Futures:	7 to 8 Lower

MILK:

Milk futures closed the week on a sour note. Class III futures came under pressure after the June Milk Production report was released and showed continued higher milk output and a substantial increase in cow numbers. The June Cold Storage report showed about what was expected. The positive aspect of the Cold Storage report was that cheese inventory was nearly steady with June 2025 and butter inventory remained below a year ago. This indicates demand has remained strong as increased cheese and butter production has been absorbed. Traders are not expected to be aggressive ahead of spot trading.

CHEESE:

The decline in block cheese on Friday may cause buyers to step back to see how aggressive sellers will be. Cheese buyers may have purchased what they needed for the time being and may remain sidelined. Demand has remained steady, and with a higher output of cheese may keep pace with an increase in demand.

BUTTER:

Now that the block cheese price has declined, maybe the butter price will increase. During the increase in cheese prices, butter remained under pressure. This is just sprecuation as there is no specific reason that this would happen. It would seem butter price is low enough to entice buyers to step up more aggressively to build inventory as they look ahead to fall and holiday demand.

Friday Closing Dairy Market Update - Butter Inventory Declines In June

GENERAL OVERVIEW:

The second half of the week was negative for Class III futures while the entire week was negative for Class IV futures. The butter price took the biggest hit this week. The June Cold Storage report showed lower butter and higher cheese inventories.

MILK:

Class III futures found support as the block cheese price increased. This improved futures prices immensely from July 7 to July 22. Futures prices weakened in response to the bearish milk production report, and they fell today as a result of the block price falling. Concern may be increasing that block cheese could follow the pattern of the previous time when the price fell back. Class IV futures have been under pressure the entire week in response to the weakness in butter and nonfat dry milk. The June Livestock Slaughter report showed there were 208,100 dairy cattle slaughtered. This was up 16,400 from May and up 19,400 head from June 2025. Even though slaughter was higher, the nation's dairy herd increased by 19,000 head from May according to the June Milk Production report.

AVERAGE CLASS III PRICES:

3 Month:	$16.82
6 Month:	$17.21
9 Month:	$17.28
12 Month:	$17.36

CHEESE:

For the week, the block cheese price decreased by 2.00 cents with 16 loads traded. The weekly average price is $1.6475. The barrel cheese price increased by 1.75 cents with no loads traded. The weekly average price is $1.6285. Dry whey decreased by 1.50 cents with 3 loads traded. The weekly average price is 68.25 cents. The June Cold Storage report showed American cheese inventory up 9.7 million pounds from May, totaling 822.8 million pounds. This is 2% below a year ago. Swiss cheese inventory decreased 886,000 pounds, totaling 24.0 million pounds, and was 5% above a year ago. Other cheese inventory increased 7.3 million pounds from May, totaling 586.2 million pounds. This was about even with a year ago. Total cheese inventory increased 16.2 million pounds, totaling 1.433 billion pounds. This was down 1% from a year ago.

BUTTER:

For the week, butter declined 8.25 cents with 77 loads traded. The weekly average price is $1.5410. Grade A nonfat dry milk declined 6.75 cents with 60 loads traded. The weekly average price is $1.4185. Butter inventory in June declined 3.2 million pounds from May, totaling 332.1 million pounds. This is 7% below a year ago. This indicates demand is strong and utilizing what is being produced.

OUTSIDE MARKETS SUMMARY:

December corn closed steady at $4.8750, November soybeans closed up 9.75 cents at $12.5350, and December soybean meal closed up $3.30 per ton at $335.20. September Chicago wheat closed down 18.25 cents at $6.7800. October live cattle closed up $1.13 at $222.50. September crude oil is down $2.88 per barrel at $89.31. The Dow Jones Industrial Average is up 236 points at 51,947, with the NASDAQ down 162 points at 24,976.

Friday Midday Dairy Market Summary - Block Cheese Falls Back

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	11 Higher
SOYBEAN MEAL:	$2.60 Higher
LIVE CATTLE:	$1.72 Higher
DOW JONES:	263 Points Higher
NASDAQ:	23 Points Lower
CRUDE OIL:	$3.28 Lower

MIDDAY MARKET UPDATE:

The block cheese price fell 6.25 cents to close at $1.6075 with two loads traded. This eliminated the gains of the past week. The barrel cheese price remained unchanged at $1.6300 with no loads traded. The dry whey price declined 1.00 cent to close at 68.00 cents with one load traded. Class III futures are 35 cents lower to 2 cents higher. The only gain is in the nearby July contract. The butter price slipped 0.25 cent to close at $1.5075 with 40 loads traded. There were 21 unfilled bids and 8 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 0.25 cent to close at $1.4025 with 16 loads traded. Class IV futures are 15-35 cents lower. Butter futures are 0.02 -- 3.72 cents lower. Dry whey futures are steady to 1.00 cent higher. Cheese futures are 3.10 cents lower to 0.20 cent higher. The July contract shows the only gain. Nonfat dry milk futures are 1.07 cents lower to 0.20 cent higher. The June Cold Storage report will be released today.

Friday Morning Dairy Market Update - June Cold Storage Report Today

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The bearish implications of the June Milk Production report influenced milk futures contracts through the end of the year. Whether this will impact spot cheese prices is yet to be seen. Some of the selling pressure was due to concern that the block cheese price would be unable to increase on Thursday. The possibility of cheese buyers having reached a threshold due to the outlook for strong milk production and thereby sufficient cheese supplies, increased the caution of traders. The June Cold Storage report will be released Friday afternoon. Inventories are expected to have increased. However, cheese invegtory may be near the levels of a year ago with butter inventory running well below a year ago. This would indicate strong demand as increased production is being absorbed.

CHEESE:

The block cheese price is at the highest level since early April while the barrel cheese price is at the highest level since mid-November 2025. With cheese production at its current level, it may be difficult to see much further upside in price in the near term.

BUTTER:

It is uncertain whether butter buyers will step up more aggressively at the low price or if they will remain content to hold back to see whether manufacturers will continue to move suppies on the spot market. More aggressive buying should increase seasonally, but that may be delayed this year due to the current supply.

Thursday Closing Dairy Market Update - Steady Block Cheese Price Raises Caution

GENERAL OVERVIEW:

Nearby Class III futures took a beating despite no change in the block cheese price. Class IV futures did not decline as much as would have been expected in response to the decline in butter and nonfat dry milk. Dairy manufacturers are spending $11 billion on new and expanding dairy manufacturing projects.

MILK:

Class IV milk futures cannot catch a break with further weakness in butter and nonfat dry milk. Milk production is decreasing, leaving less extra milk available for bottling and manufacturing. Milk production seasonally decreases during this time of year, leaving this as no surprise. However, less milk output results in less milk being available on the spot market. Spot milk prices in the Central region are flat to $5.00 over Class. Some plants have opted to reduce production schedules rather than pay the higher price for spot milk to keep plants running full. The bearish implications of the June Milk Production Report may limit the upside potential for prices. Even though production has declined due to increased temperatures, milk output is expected to remain above a year ago. The June report showed only two of the top 24 states with reduced milk production in June compared to a year ago. Virginia declined 0.9 percent, and Washington declined 0.4 percent. I think this is the first time I have seen only two states posting declines. The state with the largest increase was Kansas, up 16.7 percent. The second-largest percentage gain was Oregon, with an increase of 8.1 percent. Georgia increased 5.8 percent, South Dakota increased 5.6 percent, and Colorado increased 5.1 percent. The rest of the top 24 states showed increases of less than 5.0 percent.

AVERAGE CLASS III PRICES:

3 Month:	$17.02
6 Month:	$17.39
9 Month:	$17.43
12 Month:	$17.47

CHEESE:

The inability of the block cheese price to increase today increased the caution of traders. Buyers may not be willing to continue to bid aggressively to purchase supplies, seeing that milk production remains strong. Higher milk production provides confidence that supplies will be available during the higher-demand period. Once buyers' needs are satisfied, they may pull back to purchase less aggressively and at lower prices.

BUTTER:

The butter price has moved to the bottom end of the trading range. Cream supplies have decreased but are sufficient to maintain the demand from manufacturing plants. Some plants are focusing on unsalted butter production to prepare for the increase in demand for baking during the fall and holiday season. The June Cold Storage Report will be released tomorrow. Butter stocks are expected to be lower than the previous year, indicating good demand.

OUTSIDE MARKETS SUMMARY:

December corn closed up 2.75 cents per bushel at $4.8750, November soybeans closed up 4.75 cents at $12.4375, and December soybean meal closed down $1.00 per ton at $331.90. September Chicago wheat closed down 9.50 cents at $6.9625. October live cattle closed up $2.18 at $221.38. September crude oil is up $5.40 per barrel at $92.23. The Dow Jones Industrial Average is down 507 points at 51,712, with the NASDAQ down 553 points at 25,138.

Fluid Milk and Cream - Western U.S. Report 30

Milk production in California is lighter this week. Manufacturers report they are receiving contracted milk. Spot milk loads remain available. In the Central Valley, open capacity continues to be tight. 

Farm level milk output in Arizona and New Mexico is lightening as well. Spot loads are more available due to unforeseen pauses in production schedules. A few manufacturers note selling condensed skim milk loads due to inventories building from processing equipment issues. 

Milk production in the Pacific Northwest varies from steady to lighter. Spot milk loads are generally tighter. According to the newest milk production report from the National Agricultural Statistics Service, the number of milk cows again increased in Oregon and decreased in Washington in June 2026 compared to the same month last year. The report also shows an 8.1 percent milk production increase in Oregon. 

Temperatures remain hotter, reducing cow comfort and lightening farm level milk output in the mountain states of Idaho, Utah, and Colorado. Idaho handlers note 2026 milk output as stronger than 2025 milk output thus far, but also that milk volumes are manageable. Demand for all Classes is steady throughout the region. 

Spot cream loads are somewhat tighter. Multiples moved higher across both ranges this week. Cream demand is steady. Stakeholders indicate condensed skim milk loads are generally available throughout the region. Condensed skim milk demand is steady.

Thursday Midday Dairy Market Update - Butter Falls Further

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	7 Higher
SOYBEAN MEAL:	$0.30 Lower
LIVE CATTLE:	$1.92 Higher
DOW JONES:	577 Points Higher
NASDAQ:	555 Points Lower
CRUDE OIL:	$6.29 Higher

MIDDAY MARKET UPDATE:

The block cheese price remained unchanged at $1.6700 with 5 loads traded. The price was both higher and lower during the trading period, finally settling unchanged. The barrel cheese price increased 0.25 cent to close at $1.6300 with no loads traded. The dry whey price decreased 1.00 cent to close at 69 cents with 1 load traded. Class III futures are 41 cents lower to 5 cents higher, with the August through December contracts posting significant losses. The butter price decreased 3.00 cents to close at $1.5100 with 16 loads traded. The price initially decreased to $1.50 before bouncing from that level. This moved butter to the bottom end of the trading range. Grade A nonfat dry milk decreased 1.00 cent to close at $1.4000. Class IV futures are 2 to 9 cents lower. Butter futures are steady to 2.50 cents lower. Dry whey futures are steady to 0.25 cent higher. Cheese futures are steady to 3.30 cents lower. Nonfat dry milk futures are 1.85 cents lower to 0.17 cent higher.

Thursday Morning Dairy Market Update - Bearish Milk Production Report Should Influence Trade

OPENING CALLS:

Class III Milk Futures:	10 to 15 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Higher
Soybean Futures:	3 to 6 Higher
Soybean Meal Futures:	$0.50 to $3 Higher
Wheat Futures:	1 to 2 Higher

MILK:

Milk futures are expected to be under pressure in response to the negative June Milk Production report. Higher milk production and the substantial increase in cow numbers will influence trade ahead of spot trading. Milk production from June has already been absorbed into the market and we have seen higher cheese prices since then, indicating good demand. However, the report indicates milk supplies will be plentiful for bottling and manufacturing demand. This may reduce any supply concerns buyers may have.

CHEESE:

Cheese prices have been supported as buyers have been aggressive in their purchases, looking ahead to fall demand. Buyers have not been leapfrogging over each other, but have been purchasing steadily. There may be a limit to their aggressiveness as continued strong milk production will keep plants running on full schedules.

BUTTER:

There is no indication of the butter price finding a bottom. It has not been very long since the price was at or below this level. Buyers should turn more aggressive soon as they look ahead to fall demand. Low prices, cure low prices, and the market may be near that level. 

Wednesday Closing Dairy Market Update - June Milk Production Was Up 2.3%

GENERAL OVERVIEW:

Class III futures closed higher while Class IV futures closed lower. Butter and nonfat dry milk are unable to find a bottom. June milk production was 2.3% higher than June 2025. Cow numbers increased 19,000 head from May.

MILK:

The June Milk Production report showed continued strong milk output and higher cow numbers. Milk production in the top 24 states was 2.4% higher than in June 2025, totaling 18.9 billion pounds. May milk production was revised 0.2% lower than the initial report. Milk output per cow averaged 2,051 pounds, up 7 pounds from a year ago. Cow numbers increased by 18,000 head from May, totaling 9.23 million. U.S. milk production was 2.3% above June 2025, reaching 19.7 billion pounds. Milk output per cow was 10 pounds higher, totaling 2,036 pounds. Cow numbers increased by 19,000 head from May. The nation's dairy herd totaled 9.677 million head. This is a bearish report. Second quarter milk production totaled 60.2 billion pounds, up 2.4% from the same period last year. The advanced Class I price for August is $18.76, down $2.57 per cwt from July and down $0.17 from August 2025.

AVERAGE CLASS III PRICES:

3 Month:	$17.10
6 Month:	$17.44
9 Month:	$17.46
12 Month:	$17.48

CHEESE:

The block cheese price has moved to the highest level since October 31, 2025. The continued strength has been welcomed and has pushed the August Class III futures contract nearly $2.00 higher than July. Farmers will breathe a little easier if spot prices can hold. Continued strong milk production will ensure sufficient cheese is available for demand, which may limit upside price potential.

BUTTER:

The weakness of the butter price has been more than anticipated. The price is near the bottom end of the trading range and has eliminated much of what was gained since the low on June 23. Cream supplies to churns are tighter, as more cream is being diverted to higher-value products such as ice cream.

OUTSIDE MARKETS SUMMARY:

December corn closed up 9.50 cents per bushel at $4.8475, November soybeans closed up 16.25 cents at $12.3900, and December soybean meal closed up $5.60 per ton at $332.90. September Chicago wheat closed up 27.75 cents at $7.0575. October live cattle closed down $4.03 at $219.20. September crude oil is up $2.11 per barrel at $86.45. The Dow Jones Industrial Average is down 6 points at 52,219, with the NASDAQ down 146 points at 25,691.

June Milk Production up 2.4 Percent

June Milk Production up 2.4 Percent        

Milk production in the 24 major States during June totaled 18.9 billion pounds, up 2.4 percent from June 2025. May revised production, at 19.7 billion pounds, was up 2.2 percent from May 2025. The May revision represented a decrease of 43 million pounds or 0.2 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,051 pounds for June, 7 pounds above June 2025.   The number of milk cows on farms in the 24 major States was 9.23 million head, 185,000 head more than June 2025, and 18,000 head more than May 2026.   

April-June Milk Production up 2.4 Percent  

Milk production in the United States during the April - June quarter totaled 60.2 billion pounds, up 2.4 percent from the April - June quarter last year.  The average number of milk cows in the United States during the quarter was 9.67 million head, 44,000 head more than the January - March quarter, and 192,000 head more than the same period last year. 

Wednesday Midday Dairy Market Summary - Block Cheese Posts Another Gain

OUTSIDE MARKETS SUMMARY:

CORN:	8 Higher
SOYBEANS:	11 Higher
SOYBEAN MEAL:	$5.30 Higher
LIVE CATTLE:	$2.90 Lower
DOW JONES:	95 Points Higher
NASDAQ:	50 Points Lower
CRUDE OIL:	$2.44 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.00 cent to close at $1.67 with one load traded. The barrel cheese price remained unchanged at $1.56275 with no loads traded. The dry whey price increased 0.25 cent to close at 70.00 cents with one load traded. Class III futures are steady to 32 cents higher. The butter price decreased 3.560 cents to close at $1.5400 with no loads traded. The price is moving closer to the low end of the trading range. Grade A nonfat dry milk decreased 2.00 cents to close at $1.4100 with 7 loads traded. Class IV futures are 14-38 cents lower. Butter futures are steady to 4.00 cents lower. Dry whey futures are 0.05 -- 0.85 cent higher. Cheese futures are 0.40 cent lower to 3.10 cents higher. Nonfat dry milk futures are 1.00 -- 2.67 cents lower. The June Milk Production report will be released this afternoon. I estimate milk production to be 2.2 percent higher than a year ago, with cow numbers 4,000 head more than May.

Wednesday Morning Dairy Market Update - June Milk Production Report Due Today

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 6 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	10 to 12 Higher

MILK:

Trading in milk futures was active overnight with Class III contracts through December showing activity. Traders are expected to remain cautious ahead of spot trading now that the block cheese price reached the high of May 6. The level holds no specific influence other than the fact that the price fell substantially thereafter in May. The USDA will release the June Milk Production report Wednesday. I estimate milk production to be 2.2% higher than a year ago and cow numbers to be 4,000 head higher than May. If there was any significant impact from hot weather, it will not show up until the July report to be released in August.

CHEESE:

Cheese prices have increased steadily and significantly over the past weeks. Buyers have been more aggressive in the spot market as they look ahead to upcoming demand and want to increase their supplies at lower prices rather than take a chance on higher prices later in the year. Traders will exercise caution as the market generally declines faster than it gains, but the time of year may minimize any price weakness.

BUTTER:

The butter price has been struggling. The weakness has been somewhat of a surprise due to cream supplies tightening and churn schedules reduced to five days a week. Retail demand is steady. Seasonal buying has not yet surfaced to support the price. There is an expectation that this may increase next month. Manufacturers continue to sell butter to manage the build of inventory at the plant level.

Tuesday Closing Dairy Market Update - U.S. Implements Import Tariffs on Canadian Dairy Products

GENERAL OVERVIEW:

Milk futures diverged with Class III contracts higher and Class IV lower following the direction of the underlying cash. Trading volume in Class III futures was good. The U.S. imposed a 50% tariff on products for Canada. The June Milk Production report will be released tomorrow.

MILK:

Class III futures regained about half of their losses from Monday even though the block cheese price increased 3 cents and should have provided further support. The losses on Monday might be regained as the week progresses. Class IV futures showed pressure, moving contracts further below those of Class III. The June Milk Production report will be released on Wednesday. I estimate milk production to be up 2.2% from a year ago with cow numbers up 4,000 head from May. Trade tensions with Canada increased Monday as the U.S. imposed 50% tariffs on a wide range of Canadian goods, directly targeting key economic sectors including alcohol, dairy products, cars, seeds, floriculture products, flower bulbs, lumber and animal products. At the center of the dispute is a long-standing friction over Canada's dairy supply management system and its handling of tariff-rate quotas for imported cheese and milk protein products. Washington charges that Canadian regulatory agencies continuously manipulate access for U.S. dairy products to shield domestic processors. The new 50% import duties follow direct pressure from major U.S. agricultural groups such as the National Milk Producers Federation and the Dairy Export Council, which have demanded retaliatory action for non-compliance.

AVERAGE CLASS III PRICES:

3 Month:	$16.91
6 Month:	$17.29
9 Month:	$17.33
12 Month:	$17.36

CHEESE:

The block cheese price matched the high reached on May 6. The price fell substantially after that date. It is not anticipated to follow the same pattern, as it is a different time of year. Market fundamentals are much the same, but buyer interest generally increases for upcoming fall and holiday demand. If the price moved another 1.50 cents higher, it would then be back to the highest level since October 31.

BUTTER:

The rebound of spot butter from the low today does not necessarily indicate that support has been found. The movement was just a matter of buyers and sellers doing business. The continued weakness of Grade A nonfat dry milk will remain an anchor on Class IV futures.

OUTSIDE MARKETS SUMMARY:

December corn closed up 2.25 cents per bushel at $4.7525, November soybeans closed down 3.50 cents at $12.2275, and December soybean meal closed up $3.50 per ton at $327.30. September Chicago wheat closed up 4.00 cents at $6.7800. October live cattle closed down $0.08 at $223.23. September crude oil is up $1.86 per barrel at $84.34. The Dow Jones Industrial Average is up 375 points at 52,214, with the NASDAQ up 329 points at 25,837.

Tuesday Midday Dairy Market Summary - Block Cheese Shows Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	4 Higher
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$2.90 Higher
LIVE CATTLE:	$0.12 Higher
DOW JONES:	436 Points Higher
NASDAQ:	349 Points Higher
CRUDE OIL:	$2.05 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3.00 cents to close at $1.6600 with 3 loads traded. The barrel cheese price remained unchanged at $1.6275 with no loads traded. The dry whey price increased 0.25 cent to close at 69.75 cents with no loads traded. Class III futures traded mixed until spot trading and are now 4 cents lower to 22 cents higher, with the April contract showing the only loss. The butter price increased 0.25 cent to close at $1.5750 with 12 loads traded. The price initially declined to $1.5600 before buyers became more aggressive, with the price regaining the loss. Grade A nonfat dry milk decreased 2.00 cents to close at $1.4300 with 25 loads traded. The price initially declined 3.00 cents before retracing some of the loss. Class IV futures are 10-19 cents lower. Butter futures are 0.65 -- 5.50 cents lower. Dry whey futures are 0.45 cent lower to 1.45 cents higher. Cheese futures are steady to 1.70 cents higher. Nonfat dry milk futures are 0.42 to 1.42 cents lower.