GENERAL OVERVIEW:
Traders had something to get excited over, resulting in milk futures increasing significantly. The strength in cheese and nonfat dry milk triggered strong buying interest. May dairy exports increased 14.0% from a year earlier, with year-to-date exports up 12.6%.
MILK:
Milk futures posted strong gains in response to the strength of cheese and nonfat dry milk. Volume was good in Class III futures but mostly confined to the August and September contracts. The August contract had over 1,000 contracts traded. May dairy exports on a milk solids equivalent basis were 14.0% above May 2025. Year-to-date exports were 12.6% higher. Year-to-date total export value increased 12.0%, totaling $4.32 billion. There had been concern that exports would struggle from the impact on shipping due to the Iran conflict, but that was not the case. Alternate ways were found as demand remained strong.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.64 |
| 6 Month: | $17.21 |
| 9 Month: | $17.28 |
| 12 Month: | $17.32 |
CHEESE:
Cheese exports in May totaled 61,409 metric tons, up 18.4% from May 2025. Year-to-date exports are up 23.7%. The greatest increase in exports was seen for South Korea with a gain of 52%, followed by Mexico with a gain of 29%. Lactose exports increased 26.8%, totaling 40,267 metric tons, with year-over-year exports up 4.9%. Whey exports totaled 55,603 metric tons, up 53.2% from a year earlier. Year-to-date exports are up 24.1%. Whey protein concentrate +80 exports totaled 6,608 metric tons, down 9.5%, with year-over-year exports down 20.5%.
BUTTER:
Butterfat exports in May totaled 15,158 metric tons, up 102.5% over May 2025. Year-to-date exports are up 90.7%. Butterfat exports in May nearly doubled that of May 2025. Exports to MENA (Middle East/North Africa) jumped 767% from a year earlier. Nonfat dry milk/skim milk powder export totaled 49,669 metric tons, down 20.0% from a year earlier, with year-to-date exports up 0.3%. Whole milk powder exports totaled 4,179 metric tons, down 13.0%, with year-to-date exports up 29.8% compared to a year ago.
OUTSIDE MARKETS SUMMARY:
December corn closed down 4.25 cents per bushel at $4.5200, November soybeans closed down 10.75 cents at $11.8150, and December soybean meal closed up $4.20 per ton at $315.40. September Chicago wheat closed up 12.00 cents at $6.1975. August live cattle closed down $2.38 at $235.25. August crude oil is down $1.67 per barrel at $71.85. The Dow Jones Industrial Average is up 126 points at 52,487, with the NASDAQ up 336 points at 26,207.
