Tuesday Closing Dairy Market Update - August Milk Production Up 1.7%

GENERAL OVERVIEW:

Class IV futures were higher with double-digit gains in the traded contracts. The strength in nonfat dry milk continues to support the market. The August Milk Production report was bearish, with milk production up 1.7% and cow numbers increasing substantially.

MILK:

The August Milk Production report was released and did not provide a positive outlook for prices. Milk production in the top 24 states was 1.8% higher than August 2025. Production totaled 19.2 billion pounds. Milk output per cow averaged 2,070 pounds, or 4 pounds higher than August 2025. Cow numbers increased by 15,000 head from July and were 151,000 head more than a year ago. U.S. milk production totaled 19.9 billion pounds, up 1.7% from August 2025. Milk output per cow averaged 1 pound below a year ago. Cow numbers reached 9.71 million head, up 167,000 from a year ago and 15,000 more than July. This is a bearish report as cow numbers continue to expand. The hot weather in August impacted milk output per cow, but should rebound in the coming months. Of the top 24 states, seven states showed reduced milk production. Utah was down 3.6%; Arizona was down 3.1%; Idaho was down 0.8%; California was down 0.7%; Vermont was down 0.5%; New Mexico was down 0.4%; and Washington was down 0.2%. Kansas showed the largest increase of 13.9% from a year ago, followed by South Dakota with a gain of 8.4%.

AVERAGE CLASS III PRICES:

3 Month:	$15.95
6 Month:	$16.21
9 Month:	$16.49
12 Month:	$16.71

CHEESE:

The increasing milk supply will keep cheese production strong. Time is running out to see a seasonal increase in prices, as the strong buying activity usually peaks in October. Cheese production is outpacing demand. Buyers see no need to be concerned over supplies and will continue to purchase for later demand and as needed without chasing the market higher.

BUTTER:

The butter price may revisit the low from early January before it finds support. The price at the close of today is just 4 cents above that level. The low butter price has not been enough to stimulate sufficient demand and tighten the supply.

OUTSIDE MARKETS SUMMARY:

December corn closed down 6.25 cents per bushel at $5.3675, November soybeans closed down 2.50 cents at $13.2550, and December soybean meal closed up $2.30 per ton at $370.70. December Chicago wheat closed down 9.50 cents at $7.1725. December live cattle closed down $2.55 at $219.45. November crude oil is down $2.56 per barrel at $89.81. The Dow Jones Industrial Average is down 185 points at 51,864 with the NASDAQ up 122 points at 27,244.

August Milk Production in the United States up 1.7 Percent

August Milk Production up 1.8 Percent        

Milk production in the 24 major States during August totaled 19.2 billion pounds, up 1.8 percent from August 2025. July revised production, at 19.3 billion pounds, was also up 1.8 percent from July 2025. The July revision represented a decrease of 100 million pounds or 0.5 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,070 pounds for August, 4 pounds above August 2025.   The number of milk cows on farms in the 24 major States was 9.26 million head, 151,000 head more than August 2025, and 15,000 head more than July 2026.   

August Milk Production in the United States up 1.7 Percent  

Milk production in the United States during August totaled 19.9 billion pounds, up 1.7 percent from August 2025.  Production per cow in the United States averaged 2,049 pounds for August, 1 pound below August 2025.  The number of milk cows on farms in the United States was 9.71 million head, 167,000 head more than August 2025, and 15,000 head more than July 2026. 

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Continues Higher

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$3.80 Higher
LIVE CATTLE:	$2.35 Lower
DOW JONES:	208 Points Lower
NASDAQ:	67 Points Higher
CRUDE OIL:	$1.53 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remain unchanged at $1.3650 and $1.4525, respectively. There were two loads of blocks traded and none of barrels. The dry whey price increased 0.75 cent to close at 78.75 with no loads traded. Class III futures are mixed, from 5 cents lower to 5 cents higher. The butter price decreased 2.00 cents to close at $1.3400 with 14 loads traded. There were six unfilled bids and 18 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 3.25 cents to close at $2.1250 with six loads traded. This is the highest price since June 3 and has nearly regained the entire losses since early May. Class IV futures are 5 to 19 cents higher. Butter futures are 4.05 cents to 2.25 cents higher. Dry whey futures are 0.20 to 0.45 cent higher. Cheese futures are steady to 0.60 cent lower. Nonfat dry milk futures are 0.72 to 1.52 cents higher. The August Milk Production report will be released this afternoon. I estimate milk production to be 1.6% above a year ago and cow numbers down 4,000 head from July.

Tuesday Morning Dairy Market Update - Milk Production Report Today

OPENING CALLS:

Class III Milk Futures:	5 to 8 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	7 to 8 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	8 to 10 Lower

MILK:

Class III futures continued to struggle on Monday despite the increase in the block cheese price. Traders have little reason to believe current fundamentals and the market trend will change anytime soon. Lower milk prices may increase the desire or need to produce more milk to maintain cash flow. However, higher milk output will keep milk supplies sufficient for demand and dairy products readily available. The concern is that demand is not keeping up. The USDA will release the August Milk Production report this afternoon. I estimate milk production to be 1.6 percent above a year ago and cow numbers down by 4,000 head from July. No Dairy Revenue Protection prices will be released this afternoon.

CHEESE:

Spot cheese prices are going nowhere. The trend is down, and price bounces are short-lived. Cheese production is steady and sufficient for demand. Manufacturing plants continue to offer cheese on the spot market to keep inventory from building at the plant level.

BUTTER:

Butter demand is not as strong as it generally is at this time of year. Buyers see no need to be aggressive as they continue to purchase supplies at lower prices. International demand remains strong, but it is not enough to tighten the supply. Numerous butter plants have moved to operating six days a week as the cream supply increases.

Monday Closing Dairy Market Update - Traders Search for Positive Fundamentals

GENERAL OVERVIEW:

Class III futures found little support, with most contracts closing lower. Later contracts showed continued pressure. Class IV futures found support from a stronger nonfat dry milk price. The August Milk Production report will be released tomorrow.

MILK:

Cheese prices are choppy and continue in a downtrend. This is not typical during this time of year and is a great cause for concern. Quite a bit of purchasing by recutters and packagers for the holidays has been completed, with some ongoing purchases continuing into October. Cheese buying will continue up to the holidays as demand will be ongoing, but sufficient supplies may limit the upside price potential. USDA will release the August Milk Production report on Tuesday. Milk production is expected to be higher than a year ago. I estimate milk production to be 1.6% higher than August 2025. I estimate the cow number to be 4,000 head less than July. Lower milk and calf prices may begin to increase culling. The August Livestock Slaughter report will be released on Thursday and will indicate the attitude will hold moving through the end of the year.

AVERAGE CLASS III PRICES:

3 Month:	$15.95
6 Month:	$16.15
9 Month:	$16.46
12 Month:	$16.69

CHEESE:

The slight increase in the block cheese price does little to change the trend or the attitude in the market. The market will need to prove itself before the outlook improves. It is unlikely current demand will be sufficient to tighten the supply of cheese sufficiently in the near term.

BUTTER:

The price continues to struggle, with any strength being short-lived. The nonfat dry milk price has been steady or higher the past ten consecutive days. It is doubtful the price will move back to the high in May, but it continues to move closer to that level. The price may reach a threshold where demand will slow as it did at that time. However, demand is strong, and higher prices may remain for an extended time.

OUTSIDE MARKETS SUMMARY:

December corn closed up 15.50 cents per bushel at $5.4300, November soybeans closed up 24.50 cents at $13.2800, and December soybean meal closed up $9.80 per ton at $368.40. December Chicago wheat closed up 12.50 cents at $7.2675. December live cattle closed up $5.38 at $222.00. November crude oil is down 4.08 per barrel at $92.00. The Dow Jones Industrial Average is up 366 points at 52,049, with the NASDAQ up 600 points at 27,122.

Monday Midday Dairy Market Summary - Nonfat Dry Milk Continues Higher

OUTSIDE MARKETS SUMMARY:

CORN:	14 Higher
SOYBEANS:	24 Higher
SOYBEAN MEAL:	$11.10 Higher
LIVE CATTLE:	$5.05 Higher
DOW JONES:	191 Points Higher
NASDAQ:	530 Points Higher
CRUDE OIL:	$4.84 Lower

MIDDAY MARKET UPDATE:

The block cheese prices increased 1.50 cents to close at $1.3650 with 2 loads traded. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price remained unchanged at 78.00 cents with no loads traded. Class III futures are 13 cents lower to 6 cents higher. The butter price decreased a penny to close at $1.3600 with no loads traded. There were 34 uncovered offers with only one unfilled bid. Grade A nonfat dry milk increased 1.25 cents to close at $2.0925 with no loads traded. Class IV futures are steady to 21 cents higher. Butter futures are 1.45 cents lower to 0.25 cent higher. Dry whey futures are 0.42 to 0.97 cent higher. Cheese futures are 1.70 cents lower

Monday Morning Dairy Market Update - Milk Futures Show Further Weakness

OPENING CALLS:

Class III Milk Futures:	8 t0 10 Lower
Class IV Milk Futures:	2 to 5 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	5 to 6 Higher
Soybean Futures:	7 to 9 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	6 to 7 Higher

MILK:

Milk futures start the week under pressure, with the October Class III contract nearing the $15.50 level. The substantial weakness of block cheese on Friday does not bode well at this time of year. Cash prices should be supported as buyers look ahead to holiday demand. However, there is too much supply available for higher prices to develop. The August milk production report is expected to show higher milk output than a year ago. Milk output is not overwhelming plant capacity due to the plant expansions that have taken place. Demand is unlikely to tighten the supply sufficiently to increase prices anytime soon.

CHEESE:

The substantial weakness of block cheese on Friday may result in further weakness this week as buyers will hold back. The market is at risk of revisiting the lows of early January. The current outlook shows little upside potential.

BUTTER:

The bounce in the butter price on Friday does not indicate support has been found. There is little to suggest a change in trend as churning remains active and supplies readily available. Hopefully, the market price will find stability.

Friday Closing Dairy Market Update - July Fluid Milk Sales Increase 0.2%

GENERAL OVERVIEW:

Class III futures closed the week lower, with Class IV futures mixed. Class III futures closed the week at new contract lows following the pattern of the past three weeks. July fluid milk sales increased 0.2 percent from a year ago.

MILK:

Class III futures remained bearish this week following the pattern of the previous two weeks. New contract lows were made nearly every day as support from cheese was nowhere to be found. This is very counter-seasonal, but there is no indication of this changing anytime soon. Class IV futures remain somewhat positive, supported by continued strength in nonfat dry milk. The price spread between October Class III and Class IV contracts is now over $4.00. Packaged fluid milk sales in July were 0.2 percent above a year ago. Whole milk sales increased 5.5 percent; flavored whole milk increased 23.5 percent; reduced fat increased 1.7 percent; low fat decreased 5.4 percent; fat-free skim milk decreased 25.1 percent; flavored fat-reduced milk decreased 17.4 percent; buttermilk increased 1.5 percent, while other fluid milk product sales decreased 2.0 percent. Organic whole milk sales increased 3.5 percent; organic flavored whole milk increased 16.1 percent; organic reduced-fat milk decreased 9.6 percent; organic low-fat milk fell 25.9 percent; organic fat-free milk decreased 3.0 percent; organic flavored fat-reduced milk increased 15.7 percent, while other organic fluid milk product sales fell 99.1 percent.

AVERAGE CLASS III PRICES:

3 Month:	$15.89
6 Month:	$16.17
9 Month:	$16.50
12 Month:	$16.75

CHEESE:

For the week, blocks fell 11.00 cent with 30 loads traded. The weekly average price is $1.4120. Barrels declined 1.00 cent with one load traded. The weekly average price is $1.4475. Dry whey increased 2.00 cents with 3 loads traded. The weekly average price is 76.75 cents. The block cheese price fell to the lowest level since Jan. 22.

BUTTER:

For the week, butter remained steady with 63 loads traded. The weekly average price is $1.3590. Grade A nonfat dry milk increased by 11.00 cents, with 30 loads traded. The weekly average price is $2.0420. The nonfat dry milk price moved to the highest level since June 4.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.00 cents per bushel at $5.2750, November soybeans closed down 16.25 cents at $13.0350, and December soybean meal closed down $12.70 per ton at $358.60. December Chicago wheat closed down 12.75 cents at $7.1425. December live cattle closed up $0.38 at $216.63. October crude oil is down $2.47 per barrel at $99.44. The Dow Jones Industrial Average is down 95 points at 51,683, with the NASDAQ up 104 points at 26,523.

Friday Midday Dairy Market Summary - Block Cheese Price Plummets

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	16 Lower
SOYBEAN MEAL:	$14.20 Lower
LIVE CATTLE:	$0.20 Higher
DOW JONES:	156 Points Lower
NASDAQ:	7 Points Lower
CRUDE OIL:	$1.81 Lower

MIDDAY MARKET UPDATE:

The block cheese price fell 7.25 cents to $1.3500 with 13 loads traded. This is the lowest price since January 22nd. The barrel cheese price remained unchanged at $1.4525, with no loads traded. The dry whey price increased 0.75 cent to close at 78.00 cents with no loads traded. Class III futures are steady to 23 cents lower. The butter price increased 2.50 cents to close at $1.3700 with 18 loads traded. There were 6 unfilled bids and 14 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 3.00 cents to close at $2.08 with 18 loads traded. Trading activity is seen only in the September and October contracts, posting a gain of 9 cents in each. Butter futures are 0.45 cent higher to 1.50 cents lower. Dry whey futures are 007 -- 1.52 cents higher. Cheese futures are 0.90 -- 2.40 cents lower. Nonfat dry milk futures are 0.67 cent lower to 1.25 cents higher.

Friday Morning Dairy Market Update - Choppy Dairy Trading Activity Expected

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	9 to 10 Lower
Soybean Meal Futures:	$5 to $6 Lower
Wheat Futures:	Steady to 1 Higher

MILK:

The news each day seems like a broken record. Fundamentals remain little changed, and underlying cash price movement remains choppy. I have written numerous times that milk production is improving seasonally as cow comfort improves. This is expected to continue. The hope is that demand increases along with it, and more so, that supplies may tighten and prices rise. That may be a tall order in the current market environment. For the most part, hot weather is behind and will not be a factor in milk output. The bigger factor will be the low milk prices and lower calf and cattle prices.

CHEESE:

It is difficult to say whether cheese prices have found a bottom. The trend is down, and as long as cheese is readily available, buyers will remain unaggressive.

BUTTER:

Butter shares similar fundamentals as cheese. It is uncertain where price support will be. It is difficult to know whether Fall and holiday demand will increase sufficiently to utilize the volume of butter available to the market. Churn activity in some locations has increased, with plants operating six days per week. The supply remains sufficient for demand.

Thursday Closing Dairy Market Update - Limited Volatility Results in Light Trading Volume

GENERAL OVERVIEW:

Class III futures were able to post minor gains. This was likely the result of traders making minimal profits due to limited volatility. Trading activity was very light in milk futures.

MILK:

Traders had limited movement to take advantage of. Recent previously established positions were not going to net much profit if the right direction was chosen. This may have partly been the reason for limited volatility, as traders may have decided to hold positions in the hope for a better day on Friday. The inability of underlying cash cheese and butter prices to find a bottom and sustain strength is getting old. Prices generally see strength this time of year as buyers are looking ahead to upcoming holiday demand. The fact that it is not happening now is of grave concern for what prices may do once holiday demand is satisfied. Milk output is not slowing and may not slow in the near term.

AVERAGE CLASS III PRICES:

3 Month:	$16.06
6 Month:	$16.33
9 Month:	$16.63
12 Month:	$16.84

CHEESE:

Milk continues to move around the country to satisfy the demand for fluid milk for school accounts and to find manufacturing capacity. Manufacturing capacity is sufficient as plant expansions have taken place, but milk sometimes needs to move to where extra capacity is located. Cheese exports remain strong but have not been sufficient to tighten the domestic supply. Domestic demand has been steady to higher.

BUTTER:

The Western region reports that butter demand is somewhat weak. Retail sales are weak while demand from the food service industry is steady. International demand remains strong but will not see a strong increase over the high levels of exports in 2025. However, maintaining a strong export pace will be critical for prices over time.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.75 cents per bushel at $5.3050, November soybeans closed down .75 cent at $13.1975, and December soybean meal closed up $5.70 per ton at $371.30. December Chicago wheat closed down 3.75 cents at $7.2700. December live cattle closed down $3.95 at $216.25. October crude oil is down $1.17 per barrel at $101.26. The Dow Jones Industrial Average is up 316 points at 51,778, with the NASDAQ up 440 points at 26,418.

Fluid Milk and Cream - Western U.S. Report 38

The fluid milk market tone in the West is firm to tight. Milk supply remains generally consistent, with minor declines reported in California and Arizona due to warm temperatures; contacts expect this to be short-lived. Milk availability is also tightening in the West because of increased Class I milk movement to the Midwest and Northeast regions. Contacts report that buyers are offering premium prices, but express concern about how long this will be sustainable given rising freight costs. 

Class I demand is up, with a marked increase week over week. Some contacts also anticipate contractual changes in milk demand due to geopolitical shifts in 2027, which may alter long-term milk-draw needs from the West. Class II demand is steady, with plants kept full for ice cream and cheese production. Class III demand remains stable. Class IV demand is consistent, and contacts report manufacturing facilities are operating at full capacity. 

Cream availability is steady, with loads available across the region. Availability has increased in the Southwest following equipment upgrades, and contacts in the Mountain region report cream is moving out steadily. Condensed skim milk remains tight in the Southwest, while availability in California is reported as adequate and stable with demand. No changes in milk-fat components were reported.

Thursday Midday Dairy Market Summary - Spot Prices Show Limited Movement

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$11.30 Higher
LIVE CATTLE:	$2.82 Lower
DOW JONES:	371 Points Higher
NASDAQ:	427 Points Higher
CRUDE OIL:	$0.55 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined one cent to close at $1.3450 with 6 loads traded. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price gained a penny to close at 77.25 with no loads traded. Class III futures are mixed, ranging from 10 cents lower to 14 cents higher. The butter price declined a penny to close at $1.3450 with 6 loads traded. There were 3 unfilled bids and 26 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk remained steady at $2.05 with one load traded. So far, there has only been trading activity in the October Class IV contract, with the price 11 cents higher. Butter futures are steady to 1.97 cents lower. Dry whey futures are 1.00 -- 2.00 cents higher. Cheese futures are 0.10 cents higher to 1.20 cents lower. Nonfat dry milk futures are 0.70 cent lower to 1.25 cents higher.

Thursday Morning Dairy Market Update - Class III Futures Show Little Upside Potential

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 1 Lower
Soybean Futures:	2 to 3 Higher
Soybean Meal Futures:	$5 to $7 Higher
Wheat Futures:	6 to 7 Lower

MILK:

Class III milk futures continue to struggle to find support as spot cheese and butter prices continue to flounder. Without the support of the underlying cash, there is little reason for futures to increase. Milk production is improving seasonally, with more milk available due to substantially higher cow numbers. There is an anticipation that dairy cattle culling will increase due to low milk prices, but that does not seem to be the sentiment in the country. Extra manufacturing plant capacity is being filled by farms desiring to increase cow numbers. It does not appear that the seasonal price strength will materialize. Supply remains higher than demand.

CHEESE:

Cheese prices may either develop a price range or revisit the lows last seen in June. The downtrend in the block cheese price that began in mid-August remains intact. Buyers are obtaining sufficient supplies in the country and remain unaggressive in the daily spot market.

BUTTER:

There is little anticipation of a price increase anytime soon. A large volume of loads remains at the close of spot trading each day despite the good volume of trading on the spot market. Current demand is not able to reduce the supply and tighten the market.

Wednesday Closing Dairy Market Update - Light Trading Activity Was the Order of the Day

GENERAL OVERVIEW:

Class III milk futures were mostly lower, with traders seeing limited volatility. Trading volume was light. Class IV futures only showed trading activity in the January contract.

MILK:

Milk futures closed about as expected, with Class III mostly lower and Class IV higher. Milk volumes are increasing in much of the country as weather has become cooler. Corn silage harvest is either complete or ongoing, with many indicating good tonnage. There has been little indication of any slowing of milk production due to an increase in culling. The milk production and livestock slaughter report will provide a good indication of the direction of the market for the rest of the year. The anticipation is that the increase in cow numbers will slow as low milk prices may increase the culling of lower producers and reduce the desire to pay higher prices for replacements. However, it may take some time before that will be evident, much less tightening the milk supply.

AVERAGE CLASS III PRICES:

3 Month:	$16.04
6 Month:	$16.31
9 Month:	$16.60
12 Month:	$16.82

CHEESE:

The milk supply has reportedly tightened somewhat this week. However, it has not had much impact on spot milk prices. Spot milk is flat to $2.00 over class, which is lower than usual during this time of year. Manufacturing plants are running on full schedules. Spot cheese is readily available, leaving buyers unaggressive in the market.

BUTTER:

Butter production is steady to higher as ice cream production winds down and more cream is available to the market. Domestic butter supplies are ample for demand. Many butter plants are now running on six-day weeks.

OUTSIDE MARKETS SUMMARY:

December corn closed down 1.50 cents per bushel at $5.3425, November soybeans closed up 1.75 cents at $13.2050, and December soybean meal closed up $.20 per ton at $365.60. December Chicago wheat closed up 2.25 cents at $7.3075. December live cattle closed down $3.15 at $220.20. October crude oil is down $3.76 per barrel at $102.07. The Dow Jones Industrial Average is down 631 points at 51,462, with the NASDAQ down 3 points at 25,978.

Wednesday Midday Dairy Market Summary - Milk Futures Continue to Struggle

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	5 Lower
SOYBEAN MEAL:	$1.40 Lower
LIVE CATTLE:	$0.85 Lower
DOW JONES:	29 Points Lower
NASDAQ:	171 Points Lower
CRUDE OIL:	$3.12 Lower

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.25 cent to close at $1.4325 with 4 loads traded. The barrel price increased 1.25 cents to close at $1.4525 with one load traded. The gain in barrels did not offset the decline in blocks because barrels are not part of the calculation in the Class III price. The dry whey price remained unchanged at 76.25 with no loads traded. Class III futures are 19 cents lower to 1 cent higher with the September contract the only one showing a gain. The butter price remained steady at $1.3550 with 21 loads traded. Then price initially declined 0.75 cents before regaining the loss. There were 12 unfilled bids and 45 uncovered offers remaining at the close. Grade A nonfat dry milk increased 1.50 cents to close at $2.05 with 5 loads traded. Class IV futures have not yet traded. Butter futures are 3.00 cents lower to 2.25 cents higher. Dry whey futures have not traded. Cheese futures are steady to 1.00 cent lower. Nonfat dry milk futures are 0.77 cent lower to 1.32 cents higher.

Dairy margins narrow as beef buffer fades

Dairy producers across the West continue to navigate tight margins as softer milk prices and elevated input costs limit profitability. While many operations remain near breakeven or slightly profitable, financial performance varies significantly by region.

In 2025, profitability varied considerably across Western dairy regions. AgWest dairy customers in Western Washington averaged a loss of approximately $0.20 per cwt, reflecting high processing assessments and production costs. In contrast, Idaho and Arizona dairy producers averaged net earnings of more than $2.00 per cwt, while California producers generated average net income exceeding $4.00 per cwt. Much of this advantage was driven by strong non-milk revenue streams, particularly cattle sales. Historically high beef and calf prices provided valuable supplemental income, helping offset weak milk margins and support overall dairy profitability.

Conditions have shifted in 2026. In Washington, producer sentiment has improved following a significant reduction in milk assessment fees at a major regional processor, with average assessments declining from roughly $4.00 per cwt to $1.75 per cwt. At the same time, an important source of supplemental revenue has begun to weaken. Beef-cross calf prices remain historically strong but have declined approximately $300 to $400 per head from peak levels, while Holstein calf prices have fallen roughly $150 per head in recent months.

Looking ahead, dairy margins are expected to remain under pressure through the remainder of 2026. As cattle markets normalize and analysts suggest the industry may be approaching the later stages of the current cattle cycle, supplemental cattle revenue is expected to decline. Feed costs have increased as drought conditions support higher hay prices in parts of the West; grain markets have strengthened amid global supply concerns and the continued Russia-Ukraine conflict; and milk prices remain subdued. The All-Milk price fell to $19.35 per cwt in August and, while modest improvement is expected, prices are projected to remain below $21 per cwt through year-end. With both milk prices and cattle-related revenue expected to soften, dairy producers are preparing for tighter margins and increased financial pressure in the months ahead.

Profitability

Dairy: Slightly profitable - Neutral 12-month outlook

Despite persistent pressure from low milk prices and elevated production costs, many dairy producers have maintained slight profitability due to strong supplemental income from cattle sales. As calf values retreat and feed costs rise, that profitability buffer is shrinking, creating a more challenging outlook. 

Wednesday Morning Dairy Market Update - Milk Futures Maintain a Bearish Tone

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 1 Higher
Soybean Futures:	8 to 9 Higher
Soybean Meal Futures:	$0.50 to $1 Higher
Wheat Futures:	Mixed

MILK:

The Class III milk market has been depressed, with new contract lows continuing to be made. Any bounce in the underlying cheese prices is short-lived and likely to remain that way according to current fundamentals. Milk output is not slowing, resulting in abundant milk for bottling and manufacturing. The weather is more favorable for increased milk production. Buyers in the cash market remain active but have been able to purchase supplies at lower prices.

CHEESE:

The increase in the block cheese price is expected to be short-lived as there is little reason for buyers to be aggressive. Cheese continues to be offered on the spot market as manufacturers want to manage inventories to keep them from exceeding last year's levels.

BUTTER:

It certainly looks as if butter prices could revisit the year's lows as weakness dominates the market. Substantial selling interest has been evident for numerous weeks as abundant loads of butter have been and continue to be offered on the daily spot market. Butter production remains active as cream supplies increase.

Tuesday Closing Dairy Market Update - Dairy Futures Slip

GENERAL OVERVIEW:

Class III futures closed under pressure despite the increase in block cheese and dry whey prices. Class IV futures were mixed despite the increase in the Grade A nonfat dry milk price. The Global Dairy Trade auction trade-weighted average decreased 1.1%.

MILK:

Milk futures did not respond to higher cash prices. It is likely the increase in the block cheese price will be short-lived, keeping the market bearish. There is nothing that can be seen as friendly to the market. It is unlikely that culling will increase anytime soon to make enough of a difference to tighten the milk supply. The first reaction is to push more milk production to make up for lower milk and calf prices. Expansions continue as increased processing capacity has allowed some farms to expand. The Global Dairy Trade auction trade-weighted average declined 1.1%. This is the first decline after four consecutive gains. There were 42,444 metric tons sold at an average price of $3,868 per metric ton. The anhydrous milk fat price decreased 3.0%to $5,739 per metric ton or $2.60 per pound. Butter decreased 5.7% to $4,760 per metric ton or $2.16 per pound. Buttermilk powder decreased 0.5% to $4,549 per metric ton or $2.06 per pound. Cheddar cheese jumped 16.5% to $4,075 per metric ton or $1.85 per pound. Lactose decreased 4.3% to $1,794 per metric ton or $0.81 per pound. Skim milk powder increased 0.1% to $3,689 per metric ton or $1.67 per pound. Whole milk powder decreased 0.8% to $3,565 per metric ton or $1.62 per pound. Mozzarella cheese decreased 6.0% to $3,992 per metric ton or $1.81 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$16.11
6 Month:	$16.39
9 Month:	$16.65
12 Month:	$16.86

CHEESE:

The bounce in the block cheese price is expected to be short-lived. There is little reason for buyers to remain aggressive. It is likely that immediate orders need to be filled, causing buyers to be more aggressive. Once those orders are filled, there may be little else to support the market. I hate to sound bearish, but fundamentally, there is little to provide sustained support to the market.

BUTTER:

The butter price is only 5.50 cents above the low for the year that was set on January 13th. One would think the low price would stimulate demand, but it has not been sufficient to tighten the supply. There is no clear indication as to where the bottom might be.

OUTSIDE MARKETS SUMMARY:

December corn closed up 2.50 cents per bushel at $5.3575, November soybeans closed up 14.50 cents at $13.1875, and December soybean meal closed up $9.20 per ton at $365.40. December Chicago wheat closed up 6.50 cents at $7.2850. October live cattle closed down $1.55 at $220.70. October crude oil is up $4.49 per barrel at $105.88. The Dow Jones Industrial Average is down 328 points at 52,093, with the NASDAQ down 205 points at 25,982. 

Tuesday Midday Dairy Market Summary - Nonfat Dry Milk Marches Higher

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	12 Higher
SOYBEAN MEAL:	$8.60 Higher
LIVE CATTLE:	$1.97 Lower
DOW JONES:	421 Points Lower
NASDAQ:	218 Points Lower
CRUDE OIL:	$4.96 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents to close at $1.4350, with 9 loads traded. The barrel cheese price remained unchanged at $1.4400, with no loads traded. The dry whey price increased 0.25 cent to close at 76.25 cents with 2 loads traded. The strength in blocks and dry whey has had little impact on Class III futures. Contracts are 23 cents lower to 3 cents higher. The substantial weakness is seen in the October and November 2027 contracts. Higher prices are only seen in the October and November 2026 contracts. The butter price declined 1.50 cents to close at $1.3550 with 18 loads traded. There were 10 unfilled bids and 54 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk gained 4.00 cents to close at $2.035 with 3 loads traded. Both price strength and weakness have been incredible since the beginning of the year. Class IV futures have only shown trades in the April, July, and August contracts at 37 cents, 24 cents, and 34 cents lower. Butter futures are 1.90 cents higher to 1.62 cents lower. Dry whey futures have not traded. Cheese futures are 1.10 cents lower to 0.80 cent higher. Nonfat dry milk futures are 0.90 cent lower to 1.22 cents higher.

Tuesday Morning Dairy Market Update - Milk Futures Are Unable to Find Support

OPENING CALLS:

Class III Milk Futures:	5 to 10 Lower
Class IV Milk Futures:	2 to 5 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	4 to 5 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	5 to 6 Lower

MILK:

The negativity in Class IV futures on Monday was a surprise. The strength in the Grade A nonfat dry milk price seemed not to influence the trade. Either the market corrected to come more closely in line with cash, or traders anticipate the price will meet resistance and buyers will step back. The nonfat dry milk market may be developing a void under it, and a price decline may be faster than the increase. There certainly is sufficient milk available for all areas of dairy product production. Traders are not anxious to support Class III milk futures with overnight contracts moving deeper into the red.

CHEESE:

The weakness of spot cheese prices does not provide any indication of the market finding support. The block cheese price has been in a steady downtrend over the past month. Cheese production is slowly increasing while demand remains steady.

BUTTER:

The butter price has remained steady over the past two trading sessions, but that does not indicate the market has found support. Butter supplies remain plentiful, leaving buyers unaggressive as they continue to purchase at lower prices. Butter inventory is expected to move in line with last year over the next few months. The decline in inventory may be less than usual during the second half of the year.

Monday Closing Dairy Market Update - Milk Futures Were Unable to Find Support

GENERAL OVERVIEW:

The weakness in Class III futures was expected because of the decline in cheese prices. The weakness in Class IV futures was contrary to the movement of the underlying cash.

MILK:

Class III futures are lower, with the October contract closing below $16.00 for the first time. Class IV futures were under significant pressure despite the strength in Grade A nonfat dry milk. Either traders felt the upside potential for nonfat dry milk is limited, with the potential for both price and demand to decline, or traders decided to take profits from long positions to preserve the gains. It is another one of those days when futures move in the opposite direction from what you would anticipate. The spread between Class III and Class IV prices continues to widen. The price premium continues to erode out of Class III futures as cheese prices decline. The fact that butter and cheese prices are unable to trend higher at this time of year does not bode well for the market for the rest of the year.

AVERAGE CLASS III PRICES:

3 Month:	$16.10
6 Month:	$16.41
9 Month:	$16.69
12 Month:	$16.91

CHEESE:

The block cheese price fell to the lowest level since June 26. Barrels fell to the lowest level since June 17. There is no indication as to where support might be found. If there is a bounce in price, it will only be short-lived under the current market fundamentals. Milk production should remain plentiful for cheese output. Inventory may remain steady or possibly increase moving through the rest of the year.

BUTTER:

The butter price held steady on Friday and today, but that does not indicate the price has found support. Sellers may not want to sell butter lower than the current level. However, buyers see no reason to be aggressive.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.00 cents per bushel at $5.3325, November soybeans closed up 7.75 cents at $13.0425, and December soybean meal closed up $3.40 per ton at $356.20. December Chicago wheat closed down 3.25 cents at $7.2200. October live cattle closed up $2.58 at $222.25. October crude oil is up $1.67 per barrel at $101.72. The Dow Jones Industrial Average is down 155 points at 52,418, with the NASDAQ down 144 points at 26,189.

Monday Midday Dairy Market Summary - October Class III Futures Fall Below $16.00

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$3.00 Higher
LIVE CATTLE:	$2.57 Higher
DOW JONES:	101 Points Lower
NASDAQ:	20 Points Lower
CRUDE OIL:	$1.33 Higher

MIDDAY MARKET UPDATE:

Block cheese price declined 4.00 cents to close at $1.4200 with four loads traded. The barrel cheese price declined 2.25 cents to close at $1.4400 with no loads traded. The dry whey price remained unchanged at 76.00 cents with no loads traded. Class III milk futures are 18 cents lower to 1 cent higher. The October contract is trading below $16.00. The butter price remained unchanged at $1.3700 with no loads traded. There was an unfilled bid and 20 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk gained 2.50 cents to close at $1.9950 with three loads traded. Class IV futures have not yet traded. Futures will be higher when trading activity takes place. Butter futures are 1.00 cent lower to 0.77 cent higher. Dry whey futures are 0.25-0.42 cent lower. Cheese futures are steady to 1.60 cents lower. Nonfat dry milk futures are 0.60-2.40 cents lower despite the price increase.

Monday Morning Dairy Market Update - Cash Weakness May Continue

OPENING CALLS:

Class III Milk Futures:	4 to 9 Lower
Class IV Milk Futures:	5 to 8 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Overnight trading activity does not indicate as to the strength or weakness of spot prices. Howver, the pattern has been continued weakness in butter and cheese prices and strength in nonfat dry milk. That pattern will not continue indefinitely, but it has been prevalent in recent weeks. There is no indication that this will change anytime soon. Milk production is improving seasonally as cow comfort improves. Expansions continue to take place, with added processing capacity being filled through farm expansions. Corn silage harvest is taking place, adding to the feed stockpile. Milk prices are not expected to see much upside unless demand for dairy products increases significantly.

CHEESE:

There is no indication cheese prices have found support with further weakness possible. Cheese production has been increasing as milk supplies remain sufficient for bottling and manufacturing. Cheese buyers see no need to be aggressive, as the current trend indicates no shortage of supply potentially through the rest of the year.

BUTTER:

There is a strong potential for further weakness in butter as sellers continue to offer supplies on the spot market. Buyers continue to purchase, but at continued price weakness. Bulk butter demand is lower than expected for this time of year.

Friday Closing Dairy Market Update - USDA Raises Milk Production

GENERAL OVERVIEW:

Milk futures ended the day lower with most Class III contracts again making new contract lows. USDA increased its milk production estimate for this year and next year in the World Agricultural Supply and Demand (WASDE) Report.

MILK:

USDA increased its estimate for milk production this year by 600 million pounds to 237.2 billion pounds. The estimate for 2027 was raised by 600 million pounds to 238.6 billion pounds. If this comes to fruition, it would be an increase of 5.5 billion pounds over 2025 and 11.3 billion pounds over 2024. A substantial increase in the nation's dairy herd and higher milk production per cow are the reasons for the large increase. It was surprising that USDA increased milk output that much from the August report. Lower milk prices and the outlook for low milk prices are not expected to be a factor, according to USDA. The estimate for the average Class III price was reduced by $0.05 to $16.20 this year and reduced by $0.15 to $17.10 for 2027. The average Class IV price was increased by $0.40 to $18.55 this year and raised by $0.35 for 2027 to an average of $17.55. The All-milk price was raised by $0.05 this year from the August report to $19.90. It was left unchanged at $19.80 for 2027.

AVERAGE CLASS III PRICES:

3 Month:	$16.22
6 Month:	$16.52
9 Month:	$16.79
12 Month:	$16.99

CHEESE:

For the week, blocks decreased by 0.25 cent with 7 loads traded. The weekly average price is $1.4631. The barrel cheese price fell 7.00 cents with 10 loads traded. The price decline and loads traded took place on Thursday and were the only activity of the week. The weekly average price is $1.4975. Dry whey increased 0.75 cent with one load traded. The weekly average price is 75.75 cents. USDA reduced the estimate for the cheese price this year by 0.50 cent to average $1.57, with the average for 2027 reduced by 2.00 cents to $6450 per pound. The dry whey price was left unchanged at 67.00 cents for this year and raised a penny next year to 69.00 cents.

BUTTER:

For the week, butter declined 7.00 cents with 72 loads traded. The weekly average price is $1.3806. Grade A nonfat dry milk increased 9.00 cents with 10 loads traded. The weekly average price is $1.9294. The estimated price for this year was raised 6.50 cents to $1.6700, while the estimated price for 2027 was raised 8.00 cents to $1.5500 per pound.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.50 cents per bushel at $5.3025, November soybeans closed down 35.75 cents at $12.9650, and December soybean meal closed down $4.10 per ton at $352.80. December Chicago wheat closed down 16.00 cents at $7.2525. October live cattle closed up $1.85 at $219.68. October crude oil is down $2.43 per barrel at $100.05. The Dow Jones Industrial Average is up 509 points at 52,573, with the NASDAQ up 251 points at 26,333.

Friday Midday Dairy Market Summary - Cheese and Butter Hold Steady

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	37 Lower
SOYBEAN MEAL:	$5.10 Lower
LIVE CATTLE:	$2.25 Higher
DOW JONES:	578 Points Higher
NASDAQ:	310 Points Higher
CRUDE OIL:	$2.66 Lower

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.4600 and $1.4625, respectively. Buyers did not show up Friday, with only an offer posted in each category. Dry whey price remained unchanged at 76.00 cents, with no loads traded. Class III futures are mixed, ranging from 5 cents lower to 9 cents higher. The butter price remained steady at $1.3700 with 12 loads traded. There were 15 unfilled bids and 30 uncovered offers. Grade A nonfat dry milk gained 3.00 cents to close at $1.9700 with four loads traded. Class IV is 8-27 cents lower. Futures are adjusting to move in line with underlying cash and ahead of the weekend. Butter futures are 1.35 cents lower to 0.50 cent higher. Dry whey futures are 0.47 cent lower to 0.47 cent higher. Cheese futures are 1.00 cent lower to 0.60 cent higher. Nonfat dry milk futures are 0.25-1.00 cent lower. The World Agricultural Supply and Demand Estimates (WASDE) report was released, with USDA increasing its estimate for milk production to 237.2 billion pounds for this year and to 238.6 billion pounds for next year.

Friday Morning Dairy Market Update - Price Support Remains Elusive

OPENING CALLS:

Class III Milk Futures:	3 to 6 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 5 Lower
Soybean Futures:	13 to 15 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	4 to 5 Lower

MILK:

Class III milk futures continue to show weakness. In overnight trade, the October contract fell to $16.02 before regaining some of the loss. Support remains elusive. The outlook does not look positive as seasonal strength has not developed. Milk production is sufficient for bottling and manufacturing needs with no concern over supplies through the end of the year. The World Agricultural Supply and Demand report will be released this morning. The report will show expectations for grain production, ending stocks, and estimated prices. The report will also contain the estimates for milk production, milk prices, and dairy product prices for this year and next year. The report is not a market-mover but is used for projecting price potential.

CHEESE:

The fall of the barrel cheese price on Thursday did not have any impact on milk prices, as barrels are not used in the milk price calculation. However, it does indicate the weakness prevalent in the market and supports the weakness seen in blocks.

BUTTER:

The butter price is just 7 cents above the low of this year.

There is nothing to indicate the price will not decline to that level before it will be low enough to generate more aggressive buying interest. Offers on the daily spot market remain large, keeping the market bearish with limited upside potential.

Thursday Closing Dairy Market Update - Class III Milk Futures Make New Contract Lows

GENERAL OVERVIEW:

The brief strength in Class III futures was short-lived, with Wednesday's gains being eliminated today. Milk remains sufficient for both bottling and manufacturing. The World Agricultural Supply and Demand (WASDE) report will be released on Friday.

MILK:

Milk production is improving in most areas as cooler weather is improving cow comfort. The milk supply has been sufficient for bottling and manufacturing through the summer despite hot weather and has remained sufficient to supply demand from schools reopening for the year. It is interesting to see that spot milk prices for the week were $2.00 below class to flat class at this time of year. One reason for this is the holiday weekend and the greater availability of milk, as some plants had reduced production schedules. USDA will release the World Agricultural Supply and Demand (WASDE) report on Friday. The report will show expectations for grain production, ending stocks and estimated prices. The report will also contain the estimates for milk production, milk prices and dairy product prices for this year and next year.

AVERAGE CLASS III PRICES:

3 Month:	$16.22
6 Month:	$16.54
9 Month:	$16.82
12 Month:	$17.03

CHEESE:

Cheese demand varies depending on the variety. Cheeses used for pizza are seeing increased demand as the football season gets underway. Overall demand has been steady. Cheese production is slowly improving as milk supplies increase. The sufficient supply keeps prices from trending higher.

BUTTER:

The price moved below the previous low and is now back to the lowest level it has been since January 16. The low for the year has been $1.30 and may be a level that could be reached before support may develop. The strength in nonfat dry milk is supporting the Class IV price. The nonfat dry milk price has reached the highest level since June 9.

OUTSIDE MARKETS SUMMARY:

December corn closed up 6.00 cents per bushel at $5.3375, November soybeans closed up 22.75 cents at $13.3225 and December soybean meal closed up $5.50 per ton at $356.90. December Chicago wheat closed up 12.50 cents at $7.4125. October live cattle closed up $1.98 at $217.83. October crude oil is up $7.80 per barrel at $103.85. The Dow Jones Industrial Average is down 317 points at 52,064, with the NASDAQ down 172 points at 26,082.

Fluid Milk and Cream - Western U.S. Report 37

Western region milk production is steady for Week 37. California is experiencing high heat this week, resulting in a small, temporary decline in volumes. According to contacts, milk remains available despite seasonal decreases. 

The Northwest continues to trend cooler, supporting improved cow comfort and consistent milk output. 

The Southwest reports stable milk volumes with no holiday-related issues. 

Class I demand remains steady as the pipeline transitions from school bottling back to standard operations. Class II and Class III demand show early holiday baking preparation patterns, while Class IV demand has eased, with prices trending lower. 

Cream loads are mostly available across the region, and some manufacturers report plants remained open through the holiday. Condensed skim milk (CSM) availability is tight, and specialty CSM is being sought for specific stakeholder needs. Milk-fat components have recovered following prior weeks of heat stress. Contacts report that plant capacity currently exceeds the volume of milk being received.

Thursday Midday Dairy Market Summary - Barrels Fall Hard

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	18 Higher
SOYBEAN MEAL:	$4.80 Higher
LIVE CATTLE:	$0.77 Higher
DOW JONES:	351 Points Lower
NASDAQ:	132 Points Lower
CRUDE OIL:	$5.92 Higher

MIDDAY MARKET UPDATE:

The block cheese price decreased a penny to close at $1.4600 with four loads traded. The barrel cheese price fell 7.00 cents to close at $1.4625 with 10 loads traded. This is nearly the number of loads that have been traded so far this entire year. There were four unfilled bids and one uncovered offer remaining at the close of spot trading. The dry whey price increased 0.25 cent to close at 76.00 cents with no loads traded. Class III futures are 31 cents lower to 1 cent higher. The butter price decreased a penny to close at $1.3700 with 34 loads traded. There were 19 unfilled bids and 54 uncovered offers remaining at the close of spot trading. This is the lowest price since January 16. Grade A nonfat dry milk increased 2.50 cents to close at $1.9400 with two loads traded. There were five unfilled bids and eight uncovered offers remaining. Class IV futures are 3 cents lower to 3 cents higher. Butter futures are 0.80 to 3.50 cents lower. Dry whey futures have not yet traded. Cheese futures are 1.90 cents lower to 0.30 cent higher. Nonfat dry milk futures are 0.37 to 2.95 cents higher.

Thursday Morning Dairy Market Update - US Bans Canadian Whey Protein

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk futures were higher on Wednesday, with overnight trade indicating further strength this morning. Howver, traders will be cautious as the movement of the underlying cash is unpredictable. The overall fundamentals are not supportive of milk prices finding much upside price potential in the near term. It is questionable whether demand will be sufficient to tighten supplies and support prices. Butter and cheese have been unable to find solid support. The support for Class IV futures has been solely from the strength of nonfat dry milk. The U.S. will ban the imports of Canadian whey protein beginning September 29th. Cheese products have been excluded from the ban but will be subject to a 50 percent tariff.

CHEESE:

The block cheese price posted a minor gain on Wednesday, but it is not expected to result in a trend change. Buyers remain unaggressive as they can purchase cheese without having to chase the price higher. Slowly increasing milk production is keeping a sufficient supply of milk for manufacturing cheese, leaving it readily available for demand.

BUTTER:

It is uncertain whether the price will find support, similar to what it did the last time it was at this level. Cash traders do not trade the spot market technically, so that will not influence the market. It will only bounce if buyers turn more aggressive due to the low price. Howver, the upside will be limited as the supply is plentiful.