Monday Closing Dairy Market Update - Milk Futures Mixed

GENERAL OVERVIEW:

Milk futures started off strong in the overnights but lost momentum midway through the day. Butter had another disappointing day in the cash market, pressuring futures.

MILK:

Hot temperatures return to many parts of the country this week for an extended period, bringing late-summer concerns for milk production on a short-term basis. Class III and Class IV milk futures started off higher on the early morning trade session but quickly lost ground in the day trade. Dry whey and non-fat dry milk were the market leaders near the close with the only consistently higher prices. Both traded 0.75 cent to 1.5 cents higher.

AVERAGE CLASS III PRICES:

3 Month:	$16.87
6 Month:	$17.10
9 Month:	$17.25
12 Month:	$17.38

CHEESE:

Cheese prices are struggling to find support, with the availability of milk being plentiful and demand lacking. Holiday buying has not yet begun, and consumer demand is steady. Both blocks and barrels were unchanged with no loads traded in the cash market on Monday.

BUTTER:

Cream availability is abundant as seen in the cash market. The sheer number of loads offered has been huge recently, showing manufacturers trying to find buyers for the large quantity of butter available. Last week, the Midwest region did sell some cream for export to Mexico, but that did little to nothing for controlling the abundant supply. Butter was down 1.25 cents in the cash market and off 2.257 to 3.475 cents in the futures market.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.25 cents per bushel at $5.3775, November soybeans closed steady at $12.8800 and December soybean meal closed down $3.60 per ton at $345.30. December Chicago wheat closed down 10 cents at $7.7400. October live cattle closed up $0.95 at $212.68. October crude oil is up 2.94 per barrel at $86.34. The Dow Jones Industrial Average is down 374 points at 53,185, and the NASDAQ is down 31 points at 26,370.

Monday Midday Dairy Market Summary - Milk Futures Lose Ground

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.33 Lower
LIVE CATTLE:	$0.72 Lower
DOW JONES:	328 Points Lower
NASDAQ:	97 Points Lower
CRUDE OIL:	$2.48 Higher

MIDDAY MARKET UPDATE:

The block cheese price was unchanged at $1.4825 with no loads traded. There were three uncovered offers remaining at the close of spot trading. The barrel cheese price was unchanged at $1.5650 with no loads traded and no bids or offers. The dry whey price was also unchanged at 73.75 cents with no loads traded and one bid and offer unfulfilled at the close. Class III futures are 8 cents lower to 4 cents higher. The butter price lost 1.25 cents to close at $1.45 with 18 loads traded. There were 10 unfilled bids and 82 uncovered offers remaining at the close. Grade A nonfat dry milk gained 0.50 cents to close at $1.870 with no loads traded. Class IV futures are 5 to 11 cents higher. Butter futures are 3.375 cents lower. Dry whey futures are 0.75 to 1.525 cents higher. Cheese futures are 0.3 cent to 0.90 cent lower. Nonfat dry milk futures are 1.15 to 2.075 cents higher.

Monday Morning Dairy Market Update - Class III Milk Opens Higher

OPENING CALLS:

Class III Milk Futures:	5 to 15 Higher
Class IV Milk Futures:	5 to 15 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$0.30 to $0.50 Lower
Wheat Futures:	10 to 12 Lower

MILK:

Schools are back in session across the country, bringing additional bottled milk demand. Many are already offering whole milk options for the first time since the Obama era. Another heat wave is hitting many parts of the country this week, bringing additional concern over short-term cow comfort and lower temporary milk production volumes.

CHEESE:

Cheese is struggling to find much ground to stand on with steady to lower demand. Much of the market is in a waiting game to see how much buying will occur and when for seasonal needs. Today, demand is limited despite it being this early in the season.

BUTTER:

Butter cash values were flat week-over-week. Churning is steady with plenty of cream available, although the Midwest region saw some demand from Mexico, while not enough to significantly change the availability of product. Much like the cheese market, butter is waiting for the anticipated holiday-season buying to begin. However, with the availability of butter in the cash market, it may have quietly already begun.

Friday Closing Dairy Market Update - Class III Futures Close Lower for the Week

GENERAL OVERVIEW:

Milk futures closed with mostly double-digit gains. Class III futures closed mostly higher despite weakness in the block cheese market. However, futures closed lower for the week. Class IV futures closed significantly higher for the week.

MILK:

Class III futures through the end of the year closed lower for the week, maintaining the bearish tone. The block cheese price declined during the second half of the week. The price fell to the lowest level since July 6. The price has declined 12.75 cents since August 13th, keeping the market in a downtrend. The real excitement stemmed from the continued strength in nonfat dry milk, pushing Class IV futures significantly higher for the week. The September through December contracts are above $19.00, where they have not been since early May.

AVERAGE CLASS III PRICES:

3 Month:	$16.76
6 Month:	$17.08
9 Month:	$17.20
12 Month:	$17.32

CHEESE:

For the week, blocks decreased 4.50 cents with 38 loads traded. The weekly average price is $1.5085. Barrels were unchanged from the close of the previous week with no loads traded. The weekly average price is $1.5730. Dry whey increased 3.50 cents with one load traded. The weekly average price is 72.05 cents.

BUTTER:

For the week, butter was unchanged with 93 loads traded. The weekly average price is $1.4625. Grade A nonfat dry milk increased 6.50 cents with 16 loads traded. The weekly average price is $1.8265. The nonfat dry milk price has increased 46.50 cents since the low on July 27.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.00 cents per bushel at $5.3650, November soybeans closed up 20.00 cents at $12.8800, and December soybean meal closed up $8.00 per ton at $348.90. December Chicago wheat closed up 23.25 cents at $7.8400. October live cattle closed down $1.20 at $211.73. October crude oil is down $0.18 per barrel at $83.35. The Dow Jones Industrial Average is down 28 points at 53,560, with the NASDAQ down 139 points at 26,402.

 

Friday Midday Dairy Market Summary - Milk Futures Show Further Strength

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	15 Higher
SOYBEAN MEAL:	$7.70 Higher
LIVE CATTLE:	$0.62 Lowerr
DOW JONES:	32 Points Higher
NASDAQ:	120 Points Higher
CRUDE OIL:	$0.19 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 1.25 cents to close at $1.4825 with 10 loads traded. There were 11 unfilled bids and 12 uncovered offers remaining at the close of spot trading. The barrel cheese price declined 1.00 cent to close at $1.5650 with no loads traded and one uncovered offer. The dry whey price gained 0.75 cent to close at 73.75 cents with no loads traded. Class III futures are 4 cents lower to 12 cents higher. The butter price gained 0.25 cent to close at $1.4625 with 3 loads traded. There were no unfilled bids and 53 uncovered offers remaining at the close. Grade A nonfat dry milk gained 1.50 cents to close at $1.8650 with 3 loads traded. Class IV futures are 7-35 cents higher. Butter futures are 2.47 cents lower to 0.15 cent higher. Dry whey futures are steady. Cheese futures are 0.70 cent lower to 0.90 cent higher. Nonfat dry milk futures are 1.50 -- 3.95 cents higher.

Friday Morning Dairy Market Update - Lower Calf Prices Reduce Farm Income

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	5 to 15 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	5 to 6 Higher
Soybean Futures:	7 to 8 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	6 to 7 Higher

MILK:

There is not much to say about the milk market as fundamentals remain similar to what they have been for some time. The milk supply is sufficient and expected to increase as the summer winds down and cow comfort improves. The significant aspect that is a concern is declining calf prices and the impact it will have on cash flow. It is uncertain whether lower calf prices will be here to stay or whether this is a temporary weakness in the market. The beef cattle inventory remains at the lowest level in 75 years, and that will not change anytime soon. The government is opening up for more beef imports to reduce consumer prices. How much impact this will have, and the duration, are uncertain. This, on top of already low milk prices, will reduce farm income.

CHEESE:

Traders seem to realize cheese prices have little upside potential for the foreseeable future. With sufficient supplies available, buyers see no need to be aggressive. Buying may be increasing seasonally, but without fanfare. Increased production is satisfying increased demand.

BUTTER:

Butter supplies remain plentiful with sellers willing to sell on the spot market. The daily volume of offers on the spot market will keep the upside price potential limited.

Thursday Closing Dairy Market Update - Cattle Slaughter Increased

GENERAL OVERVIEW:

Milk futures closed higher with Class IV futures again outpacing Class III futures. Cheese and butter prices continue to struggle. Dairy cattle slaughter in July increased from a year ago.

MILK:

The September Class IV price is nearly $3.00 over the Class III price for the same month. The nonfat dry milk price is not finding price resistance, which is providing substantial support to the market. Dairy cattle slaughter in July totaled 227,600, up 19,500 from June. Slaughter in July usually is higher than June. Some of it is due to there being one more day in July, and some of it is due to calendar composition depending on actual days of slaughter. It was 1,800 head higher than July 2025. The higher slaughter level did not impact cow numbers, as the milk production report showed cow numbers did not decline from June. Dairy Farmers of America Inc. topped the list of the 2026 top dairy companies ranked by sales in 2025. Saputo Inc. ranked second. Lactalis USA was third. Nestle North America was number four. The Magnum Ice Cream Co. was ranked number five.

AVERAGE CLASS III PRICES:

3 Month:	$16.62
6 Month:	$16.95
9 Month:	$17.13
12 Month:	$17.27

CHEESE:

There is no shortage of milk for manufacturing. There had been some anticipation that more milk moving to bottling would tighten the market to some extent, but that has not yet happened and likely may not. The reopening of schools has provided an increase in food service demand, but not enough to tighten supply. The block cheese price has declined to the lowest level since July 6.

BUTTER:

The butter price has been unable to find consistent support. Buyers have not had any difficulty finding supplies for immediate needs as well as building inventory for later demand. Sufficient supplies are expected to remain available through the end of the year.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.00 cents per bushel at $5.3350, November soybeans closed up 2.00 cents at $12.6800, and December soybean meal closed up $1.60 per ton at $340.90. December Chicago wheat closed up 12.50 cents at $7.6075. October live cattle closed up $2.15 at $212.93. October crude oil is up $1.30 per barrel at $83.53. The Dow Jones Industrial Average is up 106 points at 53,569, with the NASDAQ up 411 points at 26,541.

Fluid Milk and Cream - Western U.S. Report 35

Milk volumes continue to recover and improve week over week in the West. Improved weather conditions in California have made milk more available, and contacts report plants are able to secure the volumes they need. 

Arizona and New Mexico remain tight on milk, relying on spot availability from neighboring states to fill gaps. 

Milk volume in the Pacific Northwest and Mountain states is balanced; weather conditions continue to improve, increasing cow comfort. Across the region, contacts report decreases in milk fat components. Class I production is focused on filling school demands. Class II demand is strong, and some manufacturers are taking in spot volumes of milk and cream to maintain busy production schedules. Class III and Class IV demand is steady. 

Cream multiples have increased at the bottom end of both range. Cream spot loads are tighter. Condensed skim milk (CSM) availability continues to be tight in the West. Lower milk fat components following a period of hot weather and poor conditions, along with limited availability, are causing prices to increase week over week for CSM. Demand is improving while some production is becoming more limited, partly due to production facility downtime.   

Thursday Midday Dairy Market Summary - Milk Futures Post Higher Prices

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$3.00 Higher
LIVE CATTLE:	$1.75 Higher
DOW JONES:	190 Points Higher
NASDAQ:	384 Points Higher
CRUDE OIL:	$0.96 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.50 cents to close at $1.4950 with 13 loads traded. There were two unfilled bids and 13 uncovered offers remaining at the close. The barrel cheese price remained unchanged at $1.5750 with no loads traded. The dry whey price increased 1.00 cent to close at 73.00 cents with no loads traded. Class III futures are steady to 8 cents higher. The butter price declined 0.50 cent to close at $1.4600 with 19 loads traded. There were 11 unfilled bids and 53 uncovered offers remaining at the close of spot trading. The price initially declined to $1.4450 before buying lifted the price off the low. Grade A nonfat dry milk increased 1.75 cents to close at $1.8500. This is the highest price since June 9. Class IV futures are 10--25 cents higher. Butter futures are steady to 4.25 cents lower. Dry whey futures are 0.50 cent lower to 0.80 cent higher. Cheese futures are 0.20 cent lower to 0.80 cent higher. Nonfat dry milk futures are 0.25 cent lower to 4.70 cents higher.

Thursday Morning Dairy Market Update - Milk Supplies Remain Sufficient

OPENING CALLS:

Class III Milk Futures:	8 to 15 Higher
Class IV Milk Futures:	5 to 15 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	5 to 6 Lower
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	5 to 7 Higher

MILK:

Class III futures may continue to be choppy with little direction from cash cheese and dry whey prices. Class IV futures may remain supported as nonfat dry milk buying interest remains strong. Milk production is steady to higher, keeping sufficient supply available for bottling and manufacturing. Increased demand for fluid milk due to schools reopening is being met with sufficient milk supply. Cheese and butter production remain steady. Dairy cattle slaughter increased in July, but did not reduce the cattle herd as reported on the monthly milk production report. Production is expected to remain above last year through the end of the year.

CHEESE:

The block cheese price closed below the previous low on Aug. 15. This indicates supply is sufficient as buyers have access to cheese without having to be aggressive. The usual seasonal buying has not been aggressive as buyers remain content to purchase supplies as needed and to increase inventory when desired.

BUTTER:

The volume of butter that continues to be offered to the market is unusual for this time of year or, in fact, any time of year. I have never seen the amount of uncovered offers consistently remaining at the end of each spot trading session. Spot trading activity has been substantial for quite some time. This may continue as cream supplies increase.

 

Wednesday Closing Dairy Market Update - Consumer Demand for Protein Spurs Manufacturing Growth

GENERAL OVERVIEW:

Class III futures moved into positive territory after spending most of the day lower. Class IV futures extended their gains, further widening the spread between the two classes. Class I demand continues to increase as schools reopen for the year.

MILK:

Milk supplies are sufficient for both bottling and manufacturing needs. Demand for Class II milk has been steady but is expected to diminish moving into and through September as ice cream production slows. The milk supply remains sufficient and is expected to increase while seasonal demand improves. This may keep the supply and demand balance similar to what it currently is and result in limited upside price potential. Manufacturers have been operating on full schedules with planned downtimes taking place. A significant part of the $13 billion being invested by processors across 19 states is focused on high-protein dairy products for global export markets and the protein sector of the domestic market as consumer demand surges. They are strategically positioning for demand growth in functional and performance nutrition categories.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$16.96
9 Month:	$17.11
12 Month:	$17.23

CHEESE:

Milk output has become more consistent as cooler weather has improved cow comfort. This leaves plants with more consistent milk receipts coming from farms. Increased production capacity at some plants has them reaching out to the spot market for supplies. The price range of spot milk has narrowed as the upper end has declined. Spot milk this week is flat-class to $2.00 over class.

BUTTER:

The cream supply varies throughout the country but is mostly available at the same prices as last week. Churns are running at full capacity on regular weekly schedules. Exports remain active due to significantly lower prices than the world market. Domestic supplies are plentiful with little concern over availability.

OUTSIDE MARKETS SUMMARY:

December corn closed up 13.00 cents per bushel at $5.3650, November soybeans closed up 28.25 cents at $12.6600, and December soybean meal closed up $10.10 per ton at $339.30. December Chicago wheat closed up 45.00 cents at $7.4825. October live cattle closed down $0.18 at $210.78. October crude oil is down $0.56 per barrel at $81.80. The Dow Jones Industrial Average is down 114 points at 53,464, with the NASDAQ down 21 points at 26,130.

Wednesday Midday Dairy Market Summary - Renewed Strength In Nonfat Dry Milk

OUTSIDE MARKETS SUMMARY:

CORN:	14 Higher
SOYBEANS:	28 Higher
SOYBEAN MEAL:	$9.60 Higher
LIVE CATTLE:	$0.30 Higher
DOW JONES:	123 Points Lower
NASDAQ:	51 Points Lower
CRUDE OIL:	$0.22 Higher

MIDDAY MARKET UPDATE:

The block cheese prices declined 1.75 cents to close at $1.51 with no loads traded. There was an unfilled bid and seven uncovered offers at the close of spot trading. The barrel cheese price remained unchanged at $1.5750 with no loads traded. The dry whey price increased 0.75 cent to close at 72.00 cents with one load traded. Class III futures are mixed, but mostly lower, ranging from 8 cents lower to 1 cent higher. The butter price declined 1.50 cents to close at $1.4650 with 32 loads traded. There was again a lot of selling interest as there were 86 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk gained 2.25 cents to close at $1.8325 with three loads traded. The price passed the previous high a week ago. Class IV futures are 13-40 cents higher. Butter futures are 1.47 cents lower to 1.20 cents higher. Dry whey futures are 0.02 -- 0.45 cent lower. Cheese futures are 0.80 cent lower to 0.30 cent higher. Nonfat dry milk futures are 0.20 -- 4.00 cents higher.

 

Wednesday Morning Dairy Market Update - Market Uncertainty Impacts Trading Activity

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Higher
Soybean Futures:	2 to 3 Higher
Soybean Meal Futures:	$4 to $5 Higher
Wheat Futures:	9 to 10 Higher

MILK:

Class IV futures continue to widen the gap between them and Class III futures. The September and October contracts are at a $2.00 price spread. Cheese prices remain choppy while nonfat dry milk remains supported. There is no shortage of milk and output is expected to remain higher than last year through the rest of the year. The decline in cattle prices is receiving more attention as it is impacting calf prices, which have been a significant source of income for the farm. The current weakness in cattle prices may be temporary, but the impact is significant, and the duration is uncertain.

CHEESE:

There is not much to be expected from the cheese market. Supply and demand seem balanced, keeping prices lower and in a range. The inability of prices to trend higher at this time of year is cause for concern. The hope is for demand to improve significantly and reduce inventory more than usual.

BUTTER:

The butter price remains in an overall downtrend even though there have been some price bounces. Strong support remains elusive. Manufacturers continue to offer substantial volumes of butter on the spot market. Buyers remain confident supplies will remain sufficient for demand. 

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.