GENERAL OVERVIEW:
Class III futures took a beating due to the weakness of the block cheese price. Clearly, this market has limited upside potential at the present time. The July Federal Order prices declined in all classes. The Global Dairy Trade auction trade-weighted average increased 0.1 percent.
MILK:
Class III futures fell, resuming the previous weakness. The August and September contracts have fallen below $17.00 again, renewing the bearishness. Buyers remain unaggressive except when loads are needed to fill immediate demand. Class IV futures found further support from the recent strength in nonfat dry milk. The July Federal Order class prices were released. The Class II price is $21.89 per cwt, down $0.89 from June, but up $2.58 from July 2025. The Class III price is $15.52, down $0.46 from June and down $1.80 from July 2025. The Class IV price is $18.34, down $2.62 from June and down $0.55 from July 2025. The Global Dairy Trade auction trade-weighted average increased 0.1 percent from the previous event. Anhydrous milk fat declined 0.8% to $6,367 per metric ton or $2.89 per pound. Butter declined 2.3% to $5,225 per metric ton or $2.42 per pound. Buttermilk powder declined 2.8% to $3,966 per metric ton or $1.80 per pound. Cheddar cheese gained 3.8% to $3,723 per metric ton or $1.69 per pound. Lactose increased 4.1% to $1,780 per metric ton or $0.81 per pound. Mozzarella cheese increased 1.0% to $3,992 per metric ton or $1.81 per pound. Skim milk powder increased 1.2% to $3,261 per metric ton or $1.48 per pound. Whole milk powder gained 0.2% to $3,483 per metric ton or $1.08 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.97 |
| 6 Month: | $17.21 |
| 9 Month: | $17.29 |
| 12 Month: | $17.39 |
CHEESE:
Milk production is rebounding from the recent heat wave, increasing milk receipts at the plant level. This will be welcomed as bottlers will be requiring more milk for school accounts over the next few weeks. Class III spot milk prices remain strong, ranging from $1.00 under to $5.00 over class. Cheese sales are reported to be good.
BUTTER:
Butter continues to struggle as there continues to be substantial interest in selling loads on the spot market. Forty uncovered offers remained at the close of spot trading. The positive aspect is that the sellers have not been very aggressive recently.
OUTSIDE MARKETS SUMMARY:
December corn closed down 5.50 cents per bushel at $4.6000, November soybeans closed down 3.00 cents at $11.7475, and December soybean meal closed down $2.80 per ton at $315.60. September Chicago wheat closed up 3.75 cents at $6.4225. October live cattle closed up $1.58 at $229.48. September crude oil is down $0.72 per barrel at $75.05. The Dow Jones Industrial Average is up 263 points at 54,349, with the NASDAQ down 222 points at 26,363.
