Tuesday Closing Dairy Market Update - Canada Reciprocates With Tariffs Including Dairy

GENERAL OVERVIEW:

Class IV futures gained back much of what had been lost on Monday as the market continues with choppy trade. This has been the pattern, and it is expected to continue. Increasing fluid demand due to the reopening of schools is not tightening the supply of milk for manufacturing.

MILK:

There is no shortage of milk. The spot milk supply is tight in some areas, resulting in prices above class, but it is still available for those who need to purchase extra supply from the spot market. Cooler weather is improving cow comfort and thereby increasing milk output. So far, increasing demand has been met without difficulty. Seasonal buying should increase at this time of year as buyers look ahead to fall and holiday demand. So far, increased buying has been met with sufficient supplies. Canada reciprocated with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances, and farm equipment, as a result of the 50% tariffs put on Canadian goods on Monday. The impact this will have on dairy prices is uncertain, but it certainly will have some impact on dairy trade with Canada.

AVERAGE CLASS III PRICES:

3 Month:	$16.59
6 Month:	$16.88
9 Month:	$17.05
12 Month:	$17.20

CHEESE:

The cheese prices are stuck. There is little reason for prices to increase if there is sufficient supply to meet demand. Inventory is in line with a year ago, leaving supply and demand balanced. Cheese production remains steady as milk receipts improve.

BUTTER:

The butter price continues to chop around, with the overall price remaining in a downtrend. Manufacturers continue to offer substantial volumes of butter on the daily spot market. This keeps the upside price potential limited as buyers see little reason to be aggressive except when needing to fill immediate orders. There is no near-term concern over supply.

OUTSIDE MARKETS SUMMARY:

December corn closed up 8.00 cents per bushel at $5.2350, November soybeans closed up 13.50 cents at $12.3775, and December soybean meal closed up $.60 per ton at $329.20. December Chicago wheat closed up 3.75 cents at $7.0325. October live cattle closed down $2.65 at $210.95. October crude oil is down $3.93 per barrel at $81.08. The Dow Jones Industrial Average is up 160 points at 53,577, with the NASDAQ up 171 points at 26,151.

 

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Regains the Loss

OUTSIDE MARKETS SUMMARY:

CORN:	9 Higher
SOYBEANS:	9 Higher
SOYBEAN MEAL:	$0.70 Lower
LIVE CATTLE:	$1.62 Lower
DOW JONES:	105 Points Higher
NASDAQ:	136 Points Higher
CRUDE OIL:	$2.71 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.5275 and $1.5750, respectively. There were three loads of blocks changing hands. The dry whey price increased 1.00 cent to close at 71.25 cents with no loads traded. Buyers for dry whey could not entice a seller to match the higher bid. Class III futures are 1 -- 13 cents lower. The butter price increased 3.50 cents to close at $1.4800 with 23 loads traded. This does not indicate a change in trend, but an aggressive buying bounce. There were 18 unfilled bids and 71 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 3.50 cents to close at $1.8100 with one load traded. Class IV futures are 12 -- 27 cents higher. Butter futures are 1.50 cents lower to 3.30 cents higher. Dry whey futures are 0.50 cent lower to 0.50 cent higher. Cheese futures are 0.80 cent lower to 0.20 cent higher. Nonfat dry milk futures are 0.32 to 4.07 cents higher.

Tuesday Morning Dairy Market Update - Market Fundamentals Show Little Change

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The underlying cash prices are not providing any reason for Class III futures to trend higher. The September, October, and November contracts made new lows as premiums continue to erode. The fact that price strength has not been seen to this point does not bode well for the market moving forward. Cheese and butter prices should see support as buyers prepare for upcoming fall and holiday demand. However, milk production is sufficient for bottling and manufacturing, leaving little reason for buyers to be concerned over supplies. Increasing demand may be met with increasing milk production. Lower milk prices have not been much of a concern due to high calf prices. However, calf prices are declining in the near term, impacting cash flow.

CHEESE:

Cheese prices are not expected to trend higher anytime soon. Supply and demand seem balanced, resulting in the market remaining choppy. Cheese production remains steady even though more milk is moving to bottling for school accounts.

BUTTER:

There is little reason for the butter price to increase. Churns are running on full schedules, providing sufficient supply for retail and food service demand as well as slowly building inventory. Manufacturers continue to offer butter on the daily spot market, limiting the upside price potential.

Monday Closing Dairy Market Update - Cold Storage Report Provides Little Direction

GENERAL OVERVIEW:

Milk futures closed lower, with Class IV contracts showing the largest losses. Class III traders did not like the steady block cheese price. Class IV traders reacted to the decline in butter and nonfat dry milk. The cold storage reports showed mixed numbers.

MILK:

The outlook for Class III milk prices does not look any better after the July Milk Production report was released on Friday. The September Class III contract is below August. The October contract remains slightly above, with little reason to add further premiums. It may not look any better after the July Cold Storage report was released today. The only bullish aspect of the milk production report was that cow numbers did not increase from June. The cold storage report did not provide any surprises. Class IV futures did not trade until later in the day and then posted significantly lower prices. Grade A nonfat dry milk declined for the second consecutive day, and the possibility that the price had reached resistance.

AVERAGE CLASS III PRICES:

3 Month:	$16.57
6 Month:	$16.92
9 Month:	$17.08
12 Month:	$17.22

CHEESE:

The July Cold Storage report showed American cheese inventory declined 11.3 million pounds, totaling 811.5 million pounds. This is right in line with July 2025. Swiss cheese inventory declined 905,000 pounds, totaling 23.6 million pounds, and is 9% higher than a year ago. Other cheese inventory increased 9.8 million pounds, totaling 598.0 million pounds and one% above a year ago. Total cheese inventory totaled 1.433 billion pounds, down 2.4 million pounds from June, but little changed from July 2025.

BUTTER:

Butter inventory declined 10.5 million pounds from June, totaling 321.4 million pounds. This is 3% below a year ago. Butter inventory is declining more slowly than a year ago, resulting in supplies moving closer to that of last year.

OUTSIDE MARKETS SUMMARY:

December corn closed up 7.00 cents per bushel at $5.1550, November soybeans closed down 15.25 cents at $12.2425, and December soybean meal closed up $2.80 per ton at $328.60. December Chicago wheat closed up .25 cent at $6.9950. October live cattle closed down $4.33 at $213.60. October crude oil is down $2.05 per barrel at $85.01. The Dow Jones Industrial Average is up 140 points at 53,417, with the NASDAQ down 200 points at 25,980.

Monday Midday Dairy Market Update - Nonfat Dry Milk Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	9 Higher
SOYBEANS:	10 Higher
SOYBEAN MEAL:	$4.60 Higher
LIVE CATTLE:	$2.35 Lower
DOW JONES:	441 Points Higher
NASDAQ:	159 Points Lower
CRUDE OIL:	$2.05 Lower

MIDDAY MARKET UPDATE:

The block cheese price remained steady at $1.5275 with 12 loads traded. The barrel cheese price increased 1.00 cent to close at $1.5750 with no loads traded. The dry whey price remained unchanged at 70.25 with no loads traded. Class III futures have shown volatility, with the September and October contracts showing a price swing of about 50 cents. Futures contracts are 1--17 cents lower. Trading volume is substantial, with September and October nearly 1000 contracts traded. The butter price declined 1.75 cents to close at $1.4450 with 16 loads traded. There were only 4 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk declined 2.50 cents to close at $1.7750 with 2 loads traded. Class IV futures have not yet traded. Butter futures are 1.17 cents lower to 0.50 cent higher. Dry whey futures are 0.75 cent lower. Cheese futures are 0.20 -- 1.90 cents lower. Nonfat dry milk futures are 3.65 -- 4.00 cents lower. The July Cold Storage report will be released today.

Monday Morning Dairy Market Update - Traders Found Positive News

OPENING CALLS:

Class III Milk Futures:	6 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	10 to 13 Higher
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	12 to 14 Higher

MILK:

The July Milk Production report may be the reason for significant trading activity in Class III futures overnight. There was strong volume for an overnight market, with the August and September contracts trading more than 100 contracts. This strength may be the reaction to U.S. cow numbers in July remaining unchanged from June. This may indicate the strong increase in the dairy herd may have run its course. It has been quite some time since cow numbers have not increased from the previous month, and traders are taking note of it. The market will need to prove itself before traders turn bullish. The USDA will release the July Cold Storage report Monday afternoon.

CHEESE:

Cheese prices are expected to remain choppy. Milk output continues to exceed a year ago and cooler weather has allowed milk production to rebound somewhat. Sufficient milk is available for bottling and manufacturing.

BUTTER:

The butter price is expected to remain choppy. Manufacturers are building some inventory but also are moving quite a bit to the market. There has been no shortage of offers on the spot market, which has limited the upside price potential. The nonfat dry milk price may have reached a threshold.

Friday Closing Dairy Market Update - Class III Futures Showed Further Losses

GENERAL OVERVIEW:

Class III milk futures closed mixed, experiencing some pressure from the slight decline in cheese prices. Class IV futures came under pressure as the day progressed due to the weakness in nonfat dry milk, as traders focused on the weakness rather than the strength of butter. July milk production was 2.2% above a year ago.

MILK:

Milk futures closed the week without fanfare. Class IV futures showed weakness as traders focused on the weakness of nonfat dry milk. July milk production in the top 24 states was 2.3% higher than a year ago, totaling 19.4 billion pounds. Milk production in June was revised 0.7% higher, increasing 3.1% from June 2025. That was an unusually large revision. Milk production per cow in July averaged 2,093 pounds, or 5 pounds above a year ago. Cow numbers increased by 2,000 head, totaling 9.27 million head. U.S. milk production was 2.2% above July 2025, totaling 20.1 billion pounds. Output per cow was 2,075 pounds, or 3 pounds above a year ago. Cow numbers were unchanged from June. The nation's dairy herd was 199,000 head more than a year ago at 9.71 million head. The growth in cow numbers has slowed, but milk production has not.

AVERAGE CLASS III PRICES:

3 Month:	$16.76
6 Month:	$17.10
9 Month:	$17.23
12 Month:	$17.34

CHEESE:

For the week, blocks declined 7.25 cents with 10 loads traded. The weekly average price is $1.5620. Barrels remained unchanged with no loads traded. The weekly average price is $1.5650. Dry whey increased 1.25 cents with two loads traded. The weekly average price is 69.75 cents. Blocks ran into headwinds this week with the price closing the week 0.75 cent above the low from August 5.

BUTTER:

For the week, butter increased 0.25 cent with 60 loads traded. The weekly average price is $1.4510. Grade A nonfat dry milk increased 5.50 cents with 41 loads traded. The weekly average price is $1.7925. Nonfat dry milk may have reached a level of price resistance. The July Cold Storage report will be released on Monday and will show if inventory has increased due to strong output.

OUTSIDE MARKETS SUMMARY:

December corn closed up 5.00 cents per bushel at $5.0850, November soybeans closed up 3.00 cents at $12.3950, and December soybean meal closed up $2.00 per ton at $325.80. December Chicago wheat closed down 0.75 cent at $6.9925. October live cattle closed down $0.08 at $217.93. October crude oil is up $0.23 per barrel at $87.06. The Dow Jones Industrial Average is up 518 points at 53,277, with the NASDAQ up 113 points at 26,180.

July Milk Production in the United States up 2.2 Percent

July Milk Production up 2.3 Percent        

Milk production in the 24 major States during July totaled 19.4 billion pounds, up 2.3 percent from July 2025. June revised production, at 19.1 billion pounds, was up 3.1 percent from June 2025. The June revision represented an increase of 124 million pounds or 0.7 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,093 pounds for July, 5 pounds above July 2025.   The number of milk cows on farms in the 24 major States was 9.27 million head, 185,000 head more than July 2025, and 2,000 head more than June 2026.   

July Milk Production in the United States up 2.2 Percent  

Milk production in the United States during July totaled 20.1 billion pounds, up 2.2 percent from July 2025.  Production per cow in the United States averaged 2,075 pounds for July, 3 pounds above July 2025.  The number of milk cows on farms in the United States was 9.71 million head, 199,000 head more than July 2025, but unchanged from June 2026. 

Friday Midday Dairy Market Summary - Nonfat Dry Milk Price Drops Back

OUTSIDE MARKETS SUMMARY:

CORN:	4 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$1.40 Higher
LIVE CATTLE:	$0.35 Lower
DOW JONES:	441 Points Higher
NASDAQ:	120 Points Higher
CRUDE OIL:	$0.40 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.50 cents to close at $1.5275 with no loads traded. There were 3 unfilled bids and 13 uncovered offers remaining at the close. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price remained unchanged at 70.25 cents with no loads traded. Class III futures are mixed, ranging from 24 cents lower to 9 cents higher. The butter price increased 3.25 cents to close at $1.4625 with four loads traded. There were 2 unfilled bids and 35 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk decreased 2.00 cents to close at $1.8000 with nine loads traded. Class IV futures are 9 cents lower to 2 cents higher. Butter futures are 1.25 cents lower to 3.25 cents higher. Dry whey futures are 0.45 cents higher. Cheese futures are 1.80 cents lower to 0.40 cents higher. Nonfat dry milk futures are 2.80 cents lower to 0.25 cent higher. The July Milk Production report will be released this afternoon.

Friday Morning Dairy Market Update - Milk Production Report Today

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Not much change is expected in milk futures. Some volatility may surface after spot trading, but cash prices are not expected to change much. Traders are having a difficult time scalping the market for small profits as it remains choppy. The only category trend higher is nonfat dry milk, and that is expected to reach a threshold soon. USDA will release the July Milk Production report Friday afternoon at 2:00 p.m. CDT. I estimate July milk production to be 1.8% above July 2025. I estimate cow numbers to increase by 5,000 head from June. The hot weather experienced in July should have impacted milk output. However, more cow numbers will offset some of the decline in production.

CHEESE:

The block cheese price is 1.25 cents from the low on Aug. 5. The price is expected to decline to that level or possibly lower before buyers become aggressive. Cheese is readily available for demand, leaving buyers complacent and purchasing as needed while slowly building inventory for later demand.

BUTTER:

The butter price was steady Thursday, but that may not indicate the market has found support. Manufacturers continue to offer supplies on the daily spot market with a substantial amount of uncovered offers remaining at the close of trading. This will continue to limit the upside price potential.

Thursday Closing Dairy Market Update - Class III Futures Showed Further Losses

GENERAL OVERVIEW:

Class III milk futures lost further ground today as the weakness in block cheese pressured futures. Class IV futures showed limited price movement and activity. The July Milk Production report will be released on Friday afternoon.

MILK:

Class I demand continues to increase as schools reopen for the year. Demand from manufacturing remains steady in recent weeks. More milk is moving from the Central region to the Southeast to satisfy the need for fluid milk. After the hot weather period ended, milk production has been improving but not to the level it was before the hot weather. Class III futures continue to struggle, with the September contract falling below $17.00 again. The September Class III contract is now about $2.00 below the September Class IV contract. The Class I price for September was announced at $17.04, down $1.72 from August and down $1.66 from September 2025. USDA will release the July Milk Production report on Friday afternoon. I estimate July milk production to be 1.8% above July 2025. I estimate cow numbers to show an increase of 5,000 head from June.

AVERAGE CLASS III PRICES:

3 Month:	$16.87
6 Month:	$17.12
9 Month:	$17.22
12 Month:	$17.34

CHEESE:

The block cheese price has nearly retraced back to the low of $1.5200 on Aug. 5. Buyers may step in more aggressively near that level again unless supply remains plentiful, giving buyers the confidence to remain complacent. Cheese production remains steady with previous weeks, even though more milk is moving to bottling.

BUTTER:

Butter production remains mostly steady. Some plants are increasing output as cream supplies slowly increase. Ice cream production is slowing, allowing for more cream to be available for other products. Domestic demand remains steady but is expected to improve in the coming weeks.

OUTSIDE MARKETS SUMMARY:

December corn closed up 5.50 cents per bushel at $5.0350, November soybeans closed down o.75 cent at $12.3650, and December soybean meal closed down $1.80 per ton at $323.80. December Chicago wheat closed up 2.50 cents at $7.0000. October live cattle closed up $0.78 at $218.00. October crude oil is up $1.86 per barrel at $86.25. The Dow Jones Industrial Average is down 704 points at 52,759, with the NASDAQ down 264 points at 26,067. 

Fluid Milk and Cream - Western U.S. Report 34

Overall, milk production in the West is seasonally low but sufficient to meet current demands. California contacts indicate milk volumes have dropped with the heat but remain fairly available. The start of the school year is also causing milk volumes to be drawn away from manufacturing use, though contacts report supplies are balanced for manufacturing needs. 

New Mexico and Arizona milk volumes are seasonally low, with milk being brought in from California to meet supply needs. 

The Mountain States - Idaho, Utah, and Colorado - report a continued decrease in milk volumes due to ongoing smoke, haze, and high heat, with a noticeable drop in milkfat levels. 

Pacific Northwest milk volumes show no change. Class I demand is increasing as schools reopen. Class II and Class III demand remain steady, while Class IV demand is firm, with prices trending higher but not significantly so. 

Cream multiples remain the same week over week. Contacts report cream is tighter, but they also note it is still easily purchased when needed, and availability is not affecting cream multiples. Condensed skim availability is similar to last week, with a small increase in demand from ice cream manufacturers.

Thursday Midday Dairy Market Summary - Block Cheese Exhibits Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	2 Lower
SOYBEAN MEAL:	$2.60 Lower
LIVE CATTLE:	$0.10 Higher
DOW JONES:	548 Points Lower
NASDAQ:	249 Points Lower
CRUDE OIL:	$2.28 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 4.25 cents to close at $1.5325 with eight loads traded. There were 3 unfilled bids and 13 uncovered offers remaining at the close of spot trading. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price gained 1.00 cent to close at 70.25 cents with one load traded. Class III futures are 28 cents lower to 13 cents higher with the August contract showing the only gain as it adjusted to the weekly AMS prices. The butter price remained unchanged at $1.4300 with no loads traded. No buyers showed up in the market with 26 uncovered offers remaining at the close. Grade A nonfat dry milk gained 1.00 cent to close at $1.8200 with 12 loads traded. Class IV futures are 3 -- 7 cents lower. Butter futures are 1.00 cent lower to 1.42 cents higher. Dry whey futures are 0.25 cent higher. Cheese futures are 2.70 cents lower to 1.00 cent higher with the August contract showing ht only gain. Nonfat dry milk futures are 1.22 cents lower to 2.35 cents higher.

Thursday Morning Dairy Market Update - Milk Futures Show Little Direction

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

There is not much that can be said about the dairy market other than what has already been said. Milk production is sufficient for demand and is expected to improve seasonally. Buyers of butter and cheese are not aggressive as supplies are readily available. The recent decline in calf prices has received attention as the income from calves has provided significant cash to the dairy operation. There has been discussion about whether culling may increase over time if prices remain or even go lower. It is too early to tell, as the recent decline in cattle prices may be for a short duration and will be driven by consumer demand for beef. The volume of trading activity in the August Class III contract overnight was significant. The contract is mostly priced but adjusted to the weekly AMS prices released on Wednesday. There were 116 contracts traded.

CHEESE:

Cheese prices are expected to remain choppy with little reason to move much. Buyers have not been aggressive in the spot market. They have been able to purchase much of what they need through regular channels in the country.

BUTTER:

Butter continues to show weakness with manufacturers moving supplies to limit increases in plant inventory. Buyers have been able to purchase supplies readily without having to be aggressive. Churns are running on full five-day weekly schedules.

Wednesday Closing Dairy Market Update - GDT Increased 2.3 Percent

GENERAL OVERVIEW:

Milk futures closed under pressure. The increase in the spot nonfat dry milk price was offset by the weakness in butter. The Global Dairy Trade auction trade-weighted average increased 2.3% from the previous event.

MILK:

Class III milk futures opened trading higher but fell back throughout the day as both block cheese and dry whey spot prices closed lower. Trading volume was moderate with trading activity confined to the 2026 contracts. Class IV futures were lower with trading confined to the September and October contracts. The fact that milk prices are not trending higher as a result of stronger spot prices is a concern. Buyers are seasonally more aggressive at this time of year as they look ahead to Fall and holiday demand. The Global Dairy Trade auction trade-weighted average price increased 2.3% from the previous event. There were 41,054 metric tons sold at the average price of $3,873 per metric ton. Anhydrous milk fat decreased 6.0% to $5993 per metric ton or $2.72 per pound. Butter decreased 2.0% to $5,090 per metric ton, or $2.31 per pound. Buttermilk powder decreased 3.5% to $4,552 per metric ton or $2.06 per pound. Cheddar cheese increased 0.6% to $3,744 per metric ton or $1.70 per pound. Lactose increased 3.2% to $1,807 per metric ton or $0.82 per pound. Mozzarella increased 6.1% to $4,234 per metric ton or $1.97 per pound. Skim milk powder increased 7.6% to $3,502 per metric ton or $1.59 per pound. Whole milk powder increased 3.0% to $3,591 per metric ton or $1.63 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$17.00
6 Month:	$17.20
9 Month:	$17.30
12 Month:	$17.40

CHEESE:

Cheese production maintains a steady pace. More milk is moving to bottling for school accounts, but sufficient milk remains available for demand. Cooler weather in the Central region is improving cow comfort, resulting in increased milk output. Spot milk prices this week are running $1.00 below class to $3.00 above. Milk is available for manufacturing for those who need it.

BUTTER:

Butter is having difficulty finding support as manufacturers continue to offer supplies on the spot market. Even though export demand has been strong and domestic demand has been steady with signs of improvement, it has not been enough to tighten the supply and support prices.

OUTSIDE MARKETS SUMMARY:

December corn closed up 10.00 cents per bushel at $4.9800, November soybeans closed up 20.50 cents at $12.3725, and December soybean meal closed up $6.80 per ton at $325.60. December Chicago wheat closed up 16.25 cents at $6.9750. October live cattle closed down $1.70 at $217.23. September crude oil is up $0.89 per barrel at $85.83. The Dow Jones Industrial Average is up 120 points at 53,463, with the NASDAQ up 41 points at 26,331.

Wednesday Midday Dairy Market Update - Butter Shows Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	7 Higher
SOYBEANS:	20 Higher
SOYBEAN MEAL:	$4.80 Higher
LIVE CATTLE:	$1.12 Lower
DOW JONES:	115 Points Higher
NASDAQ:	53 Points Higher
CRUDE OIL:	$1.01 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.25 cent to close at $1.57650 with two loads traded. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price slipped 0.25 cent to close at 69.25 cents with one load traded. The block cheese price continues to struggle with limited buyer interest. There were no unfilled bids remaining at the close of spot trading. Class III futures are 3 -- 15 cents lower in light trading and activity limited to 2026 contracts. The butter price declined 3.00 cents to close at $1.4300 with six loads traded. Sellers remain active with 48 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk gained 3.00 cents to close at $1.8100 with six loads traded. This is the ninth consecutive gain for the spot nonfat dry milk price. Class IV futures are steady to 35 cents lower, with trading activity confined to the September and October contracts. Butter futures are 0.05 -- 2.75 cents lower. Dry whey futures are 0.60 cent lower, with only the August contract showing activity. Cheese futures are 2.00 cents lower to 0.60 cent higher. Nonfat dry milk futures are 1.00 cent lower to 0.85 cent higher.

Wednesday Morning Dairy Market Update - Traders Uncertain Over Price Movement

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	9 to 11 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	Mixed

MILK:

Not much is expected to happen in Class III milk futures as the underlying cash prices for cheese and dry whey are expected to show little movement. The supply of milk remains sufficient for demand from bottlers and manufacturers. Cheese is available, leaving buyers unaggressive in the spot market. There have been a few days over the past week with no buyers showing up during spot trading. This limits price volatility in Class III milk futures. Class IV futures continue to find support from the strength of nonfat dry milk. The same may be true today.

CHEESE:

The market seems to be balanced. Trading activity has been limited, with buyers and sellers comfortable at the current price level. Cheese production is steady and sufficient to satisfy demand. This may keep cheese prices range-bound for the near term.

BUTTER:

The butter price is moving in a tighter range and may be building a level of support. However, the upside may be limited due to the volume of butter being offered on the spot market. Buyers have been able to purchase what they need for immediate demand as well as inventory for upcoming demand without having to chase the market higher.

Tuesday Closing Dairy Market Update - Traders Search for Price Direction

GENERAL OVERVIEW:

Milk futures were mostly higher in normal trading activity. Class IV futures were supported by the strength in nonfat dry milk. Choppy cash trade is expected to continue.

MILK:

Milk futures were mostly higher, but volatility was limited. The choppiness of underlying cash does not support a trending market. The only category showing consistency is nonfat dry milk. It has increased in price over the past eight consecutive trading days. There is some thought that the price could be near a threshold, but that remains to be seen. The price has moved back to the highest level since June 12. Milk production has increased from its lows seen during the hot weather in most areas, but it is not fully back to the level it was before. However, the return to higher milk output has come at a good time as more milk is moving to bottling. Spot milk has tightened with prices ranging from class to $5.00 over class, but there is sufficient available for those who need it.

AVERAGE CLASS III PRICES:

3 Month:	$17.14
6 Month:	$17.30
9 Month:	$17.36
12 Month:	$17.45

CHEESE:

The block cheese price has had difficulty remaining above $1.60 for very long. Buyers see no need to be aggressive. This has been seen over a few days as they never showed up to do business during spot trading. They are generally more aggressive at this time of year as buying interest increases from packagers and recutters as they prepare for the upcoming holiday season in a few months.

BUTTER:

The butter price has been unable to find solid support. A good volume of loads continues to change hands on the daily spot market with a significant number of uncovered offers remaining each day. Until the selling interest dries up, the upside price potential will be limited.

OUTSIDE MARKETS SUMMARY:

December corn closed down 1.50 cents per bushel at $4.8800, November soybeans closed up 0.75 cent at $12.1675, and December soybean meal closed up $0.10 per ton at $318.80. December Chicago wheat closed down 8.00 cents at $6.8125. October live cattle closed up $0.15 at $218.93. September crude oil is up $0.70 per barrel at $85.20. The Dow Jones Industrial Average is down 116 points at 53,343, with the NASDAQ down 355 points at 26,290.

Tuesday Midday Dairy Market Summary - Butter and Cheese Decline, Nonfat Pushes Higher

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	Unchanged
SOYBEAN MEAL:	$0.30 Higher
LIVE CATTLE:	$0.35 Higher
DOW JONES:	91 Points Lower
NASDAQ:	320 Points Lower
CRUDE OIL:	$0.50 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 2.00 cents to close at $1.5775 with no loads traded. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price remained unchanged at 69.50 cents with no loads traded. Class III futures are 2 cents lower to 22 cents higher. The butter price declined 1.25 cents to close at $1.4600 with 29 loads traded. There were 8 unfilled bids and 31 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk gained 2.75 cents to close at $1.7800 with five loads traded. This is the highest price since June 12th. Class IV futures are 6 -- 27 cents higher as traders focus on the strength of nonfat dry milk rather than the weakness of butter. Butter futures 6.50 cents lower to 0.67 cent higher. Dry whey futures are steady to 1.00 cent higher. Cheese futures 0.90 cent lower to 1.50 cents higher. Nonfat dry milk futures are 1.00 cent lower to 2.47 cents higher.

Tuesday Morning Dairy Market Update - Traders Uncertain of Market Strength

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	8 to 9 Higher
Soybean Meal Futures:	$3 to $4 Higher
Wheat Futures:	2 to 4 Higher

MILK:

Overnight markets showed little direction for Tuesday. The general idea is spot prices will remain choppy. The market fundamentals are rather benign, following the pattern of recent weeks. Milk production has rebounded from the hot weather, allowing for sufficient milk to be available for both bottling and manufacturing. More milk moving to bottling for school accounts will not tighten the supply unless demand increases across the board. Spot milk prices are higher, but there is no concern over a shortage. The July Milk Production report will be released Thursday and is expected to show higher milk output than a year ago.

CHEESE:

Cheese prices are expected to remain choppy. Buyers are able to purchase what they need to fill orders and prepare for upcoming demand. Cheese production remains steady. Spot milk prices are higher due to more milk moving to bottling.

BUTTER:

Butter has yet to find solid support. Cash activity remains significant, but buyers see little need to be aggressive. Offers to sell on the daily spot market are plentiful. Current butter production is more than ample to meet demand.

Monday Closing Dairy Market Update - Lackluster Trading Activity

GENERAL OVERVIEW:

Class III futures were mixed but mostly lower. The slight weakness of the block cheese price, with no buyers showing up to the spot market, maintained a negative tone. Class IV futures extended their gains.

MILK:

Trading volume was moderate in Class III futures with contracts mixed, but mostly lower. No buyers showed up during spot cheese trading, which added to the slight negativity of the market. With fundamentals remaining much the same as they have been over the past weeks, there is little to generate much volatility in milk futures. It was a little surprising that there were over 700 contracts traded as futures moved only 24 cents from high to low. Class IV futures did not experience much volatility, but the contracts that traded posted higher prices. The September Class IV contract is nearly $2.00 over the September Class III contract. It was only a couple of weeks ago that they were nearly at the same price. Milk production across the country is sufficient for demand from bottling and manufacturing. Spot milk is less available as more is moving to bottling for school accounts.

AVERAGE CLASS III PRICES:

3 Month:	$17.06
6 Month:	$17.24
9 Month:	$17.31
12 Month:	$17.46

CHEESE:

Mixed cheese prices today kept concern over the potential for prices moving forward.

Cheese production is steady and sufficient for demand. Increased buying from packagers and recutters generally increases during this time of year. However, buyers may have sufficient supplies readily available to them that may limit their need to be aggressive.

BUTTER:

The bounce in butter today is the result of doing regular business. There is little reason to indicate a change in trend as supplies remain sufficient. There continue to be willing sellers as there has been a substantial volume of uncovered offers remaining at the close of spot trading for some weeks.

OUTSIDE MARKETS SUMMARY:

December corn closed up 6.25 cents per bushel at $4.8950, November soybeans closed up 23.50 cents at $12.1600, and December soybean meal closed up $2.40 per ton at $318.70. September Chicago wheat closed steady at $6.7475, and October live cattle closed down $0.10 at $218.78. September crude oil is up $2.10 per barrel at $84.50. The Dow Jones Industrial Average is down 273 points at 53,460, with the NASDAQ down 84 points at 26,645.

Monday Midday Dairy Market Summary - Nonfat Dry Milk Plods Higher

OUTSIDE MARKETS SUMMARY:

CORN:	7 Higher
SOYBEANS:	23 Higher
SOYBEAN MEAL:	$1.80 Higher
LIVE CATTLE:	$0.90 Higher
DOW JONES:	327 Points Lower
NASDAQ:	76 Points Lower
CRUDE OIL:	$1.98 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.25 cent to close at $1.5975 with no loads traded. The weakness with no buyers showed up during spot trading keeps a negative tone to the market. The barrel cheese price increased 0.25 cent to close at $1.5650 with no loads traded. The dry whey price increased 0.50 cent to close at 69.50 cents with no loads traded. Class III futures are 13 cents lower to 5 cents higher. The butter price increased 1.25 cents to close at $1.4725 with 21 loads traded. There were 24 unfilled bids and 52 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 0.75 cent to close at $1.7525 with nine loads traded. Class IV futures are 4-15 cents higher. Butter futures are 0.90 -- 4.22 cents higher. Dry whey futures are unchanged to 0.25 cent lower. Cheese futures are 1.70 cents lower to 0.40 cent higher. Nonfat dry milk futures are 1.00 -- 3.95 cents higher.

Monday Morning Dairy Market Update - Traders Expect Limited Price Movement

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	3 to 4 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	6 to 8 Lower

MILK:

Market fundamentals have changed little over the past weeks, leaving trading activity confined to scalping rather than long-term positions. Price increases have been met with increased selling pressure. Lower prices increased buying interest in the cash market. Market volatility is being exploited through short-term trades with limited profit. One could say the market is stuck. More milk is moving to bottling for school accounts, while milk production is improving and remains above a year ago, offsetting the shift in demand.

CHEESE:

Spot cheese prices are expected to remain range-bound as buyers and sellers take care of business. Buyers see little reason to purchase aggressively and build inventory, while sellers want to move supplies to limit building inventory. Prices will remain choppy.

BUTTER:

Butter remains in a downtrend with buyers able to purchase supplies without having to remain aggressive. Churning remains active, supplying sufficient butter for demand. The large volume of loads traded on the spot market is allowing buyers to purchase for immediate demand and upcoming demand without having to chase the market higher. This may reduce buying aggressiveness later in the year.

Friday Closing Dairy Market Update - Quiet Close to the Week

GENERAL OVERVIEW:

It was a day without much fanfare as milk futures closed mixed. The only excitement for the day and the week was nonfat dry milk, with a substantial increase in price for the week.

MILK:

Milk futures closed the day mixed. Class III futures closed lower for the week while Class IV futures increased substantially from the previous week. The large increase in nonfat dry milk provided support. The USMCA has always been a topic of discussion. Canadian dairy farmers are upset about the possibility of agricultural concessions to the U.S. to avoid the addition of tariffs on key industrial commodities. Here is a quote from Dow Jones Newswires on Thursday. "'Our national food sovereignty is not up for negotiation," said David Wiens, head of the influential Dairy Farmers of Canada. "It is imperative that no more concessions on dairy are made.' The Trump administration is set next week to impose 50% tariffs on certain Canadian goods in response to Canada's alleged mistreatment of U.S. dairy products, automobiles and alcohol. Canadian officials say they are unwilling to upend the country's supply-management system, whereby government agencies set dairy prices, enforce production quotas, and limit dairy imports. Canadian and US negotiators are in talks in Washington to avoid the imposition of new 50 percent duties." It will be interesting to see what transpires over the weekend.

AVERAGE CLASS III PRICES:

3 Month:	$17.11
6 Month:	$17.27
9 Month:	$17.33
12 Month:	$17.43

CHEESE:

For the week, block increased 4.50 cents with 14 loads traded. The weekly average price is $1.6050. Barrels increased 1.50 cents with one load traded. The weekly average price is $1.5535. Dry whey decreased 0.50 cent with two loads traded. The weekly average price is 68.95 cents. The increase in the block cheese price did not support Class III prices during the week.

BUTTER:

For the week, butter declined 5.25 cents with 121 loads traded. The weekly average price is $1.4755. Grade A nonfat dry milk jumped 16.75 cents with 32 loads traded. The weekly average price is $1.6570. The nonfat dry milk price moved to the highest price since June 15th.

OUTSIDE MARKETS SUMMARY:

December corn closed up 11.25 cents per bushel at $4.8325, November soybeans closed up 10.25 cents at $11.9250, and December soybean meal closed up $2.30 per ton at $316.30. September Chicago wheat closed up 22.00 cents at $6.7475. October live cattle closed down $1.18 at $218.88. September crude oil is up $1.15 per barrel at $82.40. The Dow Jones Industrial Average is down 108 points at 53,732, with the NASDAQ down 74 points at 26,729.

Friday Midday Dairy Market Summary - Butter and Cheese Drop Back

OUTSIDE MARKETS SUMMARY:

CORN:	8 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$1.10 Higher
LIVE CATTLE:	$2.65 Lower
DOW JONES:	141 Points Lower
NASDAQ:	125 Points Lower
CRUDE OIL:	$1.02 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.00 cent to close at $1.6000 with no loads traded. The barrel cheese price remained unchanged at $1.5625 with no loads traded. No buyers showed up in either category, keeping negativity alive and well. The dry whey price increased 2.00 cents to close at 69.00 cents with one load traded. Class III futures are 5 cents lower to 5 cents higher. The butter price declined 2.75 cents to close at $1.4600 with 9 loads traded. There were 8 unfilled bids and 37 uncovered offers remaining at the close. Grade A nonfat dry milk gained 3.50 cents to close at $1.7450 with 6 loads traded. Class IV futures are 9 cents lower to 12 cents higher. Butter futures are 0.27 -- 1.75 cents lower. Dry whey futures are 0.25 cent lower to 0.30 cent higher. Cheese futures are 1.10 cents lower to 0.70 cent higher. Nonfat dry milk futures are 2.47 cents lower to 1.57 cents higher.

Friday Morning Dairy Market Update - Traders Wait for Price Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Higher
Soybean Futures:	5 to 7 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	12 to 14 Higher

MILK:

The large increase in Class IV milk futures on Thursday did not carry over into overnight trade. Class IV contracts generally do not trade overnight as bids and offers are far apart. Higher futures are expected as trading activity increases during the day. Class III traders will take a wait-and-see attitude before making any strong commitments. Beef cattle prices have been declining, which has reduced calf prices and some of the extra income from those calves. However, even with lower prices, beef-on-day calves will continue to be an integral part of the dairy operation. Dairy cattle slaughter is not expected to increase significantly anytime soon.

CHEESE:

The block cheese price has had a nice bounce this week, but the concern is whether it will hold. Traders have been cautious in Class III futures as futures remain close to what they were a week ago. Demand is good, and cheese production is steady.

BUTTER:

There have been a lot of loads of butter traded on the spot market so far this week. Immediate orders are being filled without difficulty, and inventory is being added to in preparation for fall and holiday demand. Cream supplies are not abundant, but sufficient to maintain an active churning schedule. The price may remain choppy.

Thursday Closing Dairy Market Update - Traders Wait for Price Direction

MILK:

The large increase in Class IV milk futures on Thursday did not carry over into overnight trade. Class IV contracts generally do not trade overnight as bids and offers are far apart. Higher futures are expected as trading activity increases during the day. Class III traders will take a wait-and-see attitude before making any strong commitments. Beef cattle prices have been declining, which has reduced calf prices and some of the extra income from those calves. However, even with lower prices, beef-on-day calves will continue to be an integral part of the dairy operation. Dairy cattle slaughter is not expected to increase significantly anytime soon.

CHEESE:

The block cheese price has had a nice bounce this week, but the concern is whether it will hold. Traders have been cautious in Class III futures as futures remain close to what they were a week ago. Demand is good, and cheese production is steady.

BUTTER:

There have been a lot of loads of butter traded on the spot market so far this week. Immediate orders are being filled without difficulty, and inventory is being added to in preparation for fall and holiday demand. Cream supplies are not abundant, but sufficient to maintain an active churning schedule. The price may remain choppy.

Fluid Milk and Cream - Western U.S. Report 33

Milk and cream production are mixed in the West, and output is being affected by hot weather, fires, and smoke. 

California milk production is showing small increases week-over-week, with some producers reporting planned maintenance. 

In the mountain states, high temperatures persist and are not cooling off at night. Farm-level milk output in Idaho is tight, while contacts in Utah report heavy milk production despite ongoing fires and smoke. 

Production in the Pacific Northwest is steady. Class I demand is increasing as schools reopen. Class II demand is soft, while Class III and IV demands remain steady. 

Stakeholders describe cream supplies as long, though contracts are being met. Cream multiples moved slightly higher at the top of the range this week. Cream demand is steady. Condensed skim milk loads are available, and demand for condensed skim is somewhat stronger.

Thursday Midday Dairy Market Summary - Nonfat Dry Milk Jumps Again

OUTSIDE MARKETS SUMMARY:

CORN:	9 Lower
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.50 Lower
LIVE CATTLE:	$4.02 Lower
DOW JONES:	21 Points Lower
NASDAQ:	197 Points Higher
CRUDE OIL:	$1.42 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 0.50 cents to close at $1.61 with seven loads traded. The barrel cheese price increased 1.50 cents to close at $1.5625 with one load traded. The dry whey price decreased 2.75 cents to close at 67.00 cents with one load traded. Class III futures are 6 cents lower to 8 cents higher. The butter price increased 2.50 cents to close at $1.4875 with 31 loads traded. Even with the activity today, 28 uncovered offers remained at the close of spot trading. So far this week, there have been 112 loads traded. The Grade A nonfat dry milk price jumped 6.00 cents to close at $1.17 with two loads traded. This moved the price to the highest level since June 15. Class IV futures reacted violently, with futures ranging from 31 -- 92 cents higher on good volume. Butter futures are 0.75 cent lower to 4.25 cents higher. Dry whey futures are 0.50 cents lower to 0.45 cents higher. Cheese futures are 0.40 cents lower to 1.40 cents higher. Nonfat dry milk futures are 2.20 -- 8.00 cents higher.

Thursday Morning Dairy Market Update - Traders Search for Market Support

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1 to $2 Higher
Wheat Futures:	2 to 3 Higher

MILK:

The significant increase in the Grade A nonfat dry milk price on Wednesday resulted in Class IV futures being settled higher. However, trading activity was very light, with only two contract months traded throughout the day. Traders held to their bids and offers, unwilling to move them. Higher prices have been met with increased selling, with upside potential limited. The World Agricultural Supply and Demand report released on Wednesday does not provide much hope for higher milk prices the rest of this year and next year if the USDA's estimates come to fruition.

CHEESE:

Cheese prices have remained stable for two consecutive trading sessions. Buyers have been absent the past two days, giving the market a bearish tone. Supply and demand seem to be balanced at current prices. No significant price moves are expected today.

BUTTER:

The butter price remains in an overall downtrend. There is a substantial amount of butter available, with buyers remaining unaggressive. Demand is being met with supplies purchased for later demand without having to chase the market higher.