Wednesday Closing Dairy Market Update - Federal Order Class Prices Released

GENERAL OVERVIEW:

Federal Order class prices were revealed by USDA today. Class II and III were both lower while Class IV some modest gains from last month.

MILK:

While the October futures price still remained below the $15 mark today, deferred months found a little support during the trading session gaining 11 to 24 cents. Class IV was also mixed with the October contract trading 1 cent lower but the deferred months were around 25 cents higher. USDA released class and component prices today. Class II was $17.60, $1.11 lower than last month and Class III fell 60 cents from the August price coming in at $16.04 here in September. Class IV price was $18.94 per hundredweight, an increase of $1.58 from the previous month.

AVERAGE CLASS III PRICES:

3 Month:	$15.42
6 Month:	$15.98
9 Month:	$16.34
12 Month:	$16.64

CHEESE:

The block cheese price fell yet again today to continue to make new lows not seen in over six years. Barrels were steady with no bids or offers available. Futures, however, were higher on the day, trading as much as 2.6 cents higher on the November contract. Fundamentals do not give any reason so support an actual rally here but it is nice to see some small gains on the board. For the component prices listed in the Federal Order released today, cheese came in at $1.5577 per pound, 0.0626 cents lower than last month.

BUTTER:

Butter prices also fell in the Class and Component Prices released today for September. Butter came in at $1.4462, 2.85 cents lower than what was released in August. In the cash market, butter had a positive day, making up for much of the ground lost in yesterday's trade by gaining 4.25 cents back on the day with 28 trades loaded. With the volume of bids available, it is reasonable to assume that buyers are willing to make deals here at these prices. Futures did not follow suit today, trading slightly lower on the day.

OUTSIDE MARKETS SUMMARY:

December corn closed down 21.25 cents per bushel at $5.0075, November soybeans closed down 4.75 cents at $12.9300 and December soybean meal closed down $2.10 per ton at $356.90. December Chicago wheat closed down 17.00 cents at $6.7575.

December live cattle closed up $1.90 at $222.70. November crude oil is up 1.04 per barrel at $90.42. The Dow Jones Industrial Average is down 443 points at 50,906 and the NASDAQ is up 63 points at 26,861.

Wednesday Midday Dairy Market Update - Butter Buyers Come to the Table

OUTSIDE MARKETS SUMMARY:

CORN:	20 Lower
SOYBEANS:	5 Lower
SOYBEAN MEAL:	$0.25 Lower
LIVE CATTLE:	$2.03 Higher
DOW JONES:	66Points Lower
NASDAQ:	242 Points Higher
CRUDE OIL:	$1.64 Lower

MIDDAY MARKET UPDATE:

The block cheese price traded 0.50 cent lower today closing at $1.2700 with 3 loads traded. The barrel cheese price was unchanged at $1.4525 with no loads traded. The dry whey price climbed 0.50 cent, closing at 81.50 cents with 1 load traded. Class III futures are trading anywhere from 2 to 30 cents higher here at the midday point. The butter price was up at 4.25 cents with 28 loads traded. There were 18 unfilled offers and 92 bids remaining at the close. Grade A nonfat dry milk was 0.75 cents higher at $2.20 with 2 loads traded. Class IV futures are mixed from 5 cents lower to 25 cents higher. Butter futures are 0.025 to 1.25 cents lower. Dry whey futures are trading 0.25 cents to 1 cent lower. Cheese futures are 0.4 to 2.1 cents higher. Nonfat dry milk futures are 0.35 lower to 3.50 cents higher. 

Wednesday Morning Dairy Market Summary - Butter May Be Near Support

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:	7 to 8 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	6 to 7 Higher

MILK:

It hurts to look at the Class III futures prices. The October contract is now the lead month with a price of $14.93. It has been quite some time since the Class III price has fallen below $15.00. If the current futures prices remain through the end of the year, it will be very difficult financially to cash flow. On the other hand, Class IV prices continue to increase, supported by strong nonfat dry milk. The dry whey price has reached the highest level in four years, with nonfat dry milk moving near the highs of early May. The Quarterly Grain Stocks report will be released today and may have an impact on feed prices depending on the level of grain on hand. The Agricultural Prices report will be released this afternoon, providing most of the prices used to calculate income over feed for the Dairy Margin Coverage program.

CHEESE:

This is not much to be said about the block cheese market, as sellers continue to offer supplies to the spot market at lower prices. The price falling back to the lowest level in more than six years at the time of year when both demand and prices usually increase does not bode well for the market.

BUTTER:

The butter price is only 1.75 cents above the lows of the year. The price may be low enough to generate greater buying interest, as there were 41 unfilled bids remaining at the close of spot trading. This may indicate buyer support may be near. However, the upside price potential may be limited 

Tuesday Closing Dairy Market Update - Milk Prices Continue to Diverge

GENERAL OVERVIEW:

It was another dismal day for Class III milk futures as the block cheese price moved to a six-year low. The October contract fell below $15.00. The September futures contracts ceased trading, with the Federal Order class prices to be announced on Wednesday.

MILK:

Class III milk futures were under significant pressure again today in response to the decline in the block cheese price. The dry whey price is minimizing the weakness as it continues to increase, moving to the highest level since February 22, 2022. The low milk prices are beginning to have more impact as the calf prices are not making up for the decline in milk income. This may increase culling primarily on small dairy farms initially before triggering increased culling on large dairy farms. Class IV futures were strong as traders focused on the strength in nonfat dry milk rather than the weakness in butter. The spread between Class III and Class IB futures continues to widen. The September Federal Order class prices will be released on Wednesday. The trade anticipates a Class III price of $16.01 and a Class IV price of $19.08.

AVERAGE CLASS III PRICES:

3 Month:	$15.26
6 Month:	$15.84
9 Month:	$16.24
12 Month:	$16.55

CHEESE:

The block cheese price fell to the lowest level since May 5, 2020. The expansion of milk production, as cows continued to be added, is providing plentiful milk for manufacturing. The low prices have not yet increased demand sufficiently to tighten supply. Buyers are complacent, seeing no reason to purchase aggressively, which could result in building supply at a time when they do not need to.

BUTTER:

The butter price continues to struggle as butter production increases due to increased cream supplies. Inventory in August declined seasonally, but the decline was less than usual. This has resulted in butter in cold storage being 10% above a year ago.

OUTSIDE MARKETS SUMMARY:

December corn closed down 1.00 cent per bushel at $5.2200, November soybeans closed up 9.50 cents at $12.9775, and December soybean meal closed down $.40 per ton at $359.00. December Chicago wheat closed up 4.00 cents at $6.9275. December live cattle closed unchanged. November crude oil is down $3.66 per barrel at $88.94. The Dow Jones Industrial Average is down 132 points at 51,350, with the NASDAQ down 23 points at 26,798.

Tuesday Midday Dairy Market Summary - Block Cheese Falls to Six-Year Low

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	14 Higher
SOYBEAN MEAL:	$2.30 Higher
LIVE CATTLE:	$0.62 Higher
DOW JONES:	313 Points Lower
NASDAQ:	73 Points Lower
CRUDE OIL:	$2.08

MIDDAY MARKET UPDATE:

The block cheese price fell 3.25 cents to close at $1.2750 with 6 loads traded. This is the lowest price since May 5, 2020. There was one unfilled bid and 4 uncovered offers remaining at the close of spot trading. The barrel price continues to remain unchanged at $1.4525 with no activity. The dry whey price increased 0.50 cent to close at 81.00 cents with one load traded. This is the highest price since February 22, 2022. Class III futures are under pressure, with the October contract falling below $15.00. The butter price fell 5.25 cents to close at $1.3175 with 19 loads traded. There were 41 unfilled bids and 15 uncovered offers remaining at the close of spot trading. The price may be getting low enough to increase buyer interest. Grade A nonfat dry milk increased 1.25 cents to close at $2.1925 with 4 loads traded. Class III futures are 3-24 cents higher. Butter futures are 3.10 -- 7.50 cents lower. Dry whey futures are 0.25 cent lower. Cheese futures are 0.40 -- 2.90 cents lower. Nonfat dry milk futures are 1.72 -- 4.00 cents higher. The September dairy futures and options have finished trading. 

Tuesday Morning Dairy Market Update - Fundamentals Show Little Change

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III futures showed significant weakness on Monday despite steady cheese and dry whey prices. Traders see little reason for price strength in the near term. Increasing milk production with sufficient supplies for bottling and manufacturing is keeping end-users complacent. Increased plant capacity is absorbing higher milk production without difficulty. Some plants have expanded capacity without taking on additional patrons, with expansions of current patrons filling the extra capacity. Carthage, Missouri, will be the site of a $276 million cheese plant operated by Schrieber Foods. It is expected to be operational in 2028. Today is the last day to trade September dairy futures and options, with the Federal Order prices to be announced on Wednesday.

CHEESE:

There is little anticipation that cheese prices will trend higher anytime soon. Any price increase will be short-lived. Increasing milk receipts at the plant level will keep production strong and cheese available to the market.

BUTTER:

Significant volumes of butter continue to be offered on the daily spot market. Buyers do not need to be aggressive as plants are willing to sell at lower prices.

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

GENERAL OVERVIEW:

It was not a good day for Class III futures. Premium continues to be removed from contracts. Class IV futures did not respond to the increase in nonfat dry milk due to the weakness in butter.

MILK:

Class III milk futures continue to erode further weakness seen as traders see little upside potential for cheese prices in the foreseeable future. Price weakness seen at this time of year is usual, and weakness of this magnitude is not seen. It is not a matter of demand being very slow, but more the fact that milk production is higher than a year ago and continues to increase. Both the interest and high prices of beef on dairy calves and the increased manufacturing capacity have allowed farms to add cows and increase milk production even though milk prices are low. Class IV milk prices are very strong, with better blend prices depending on the utilization percentage of Class IV in the Federal Order. The price spread between Class III and Class IV continues to widen, with a spread price of around $5.15.

AVERAGE CLASS III PRICES:

3 Month:	$15.55
6 Month:	$15.89
9 Month:	$16.25
12 Month:	$16.53

CHEESE:

The block cheese price was steady, but not necessarily because it found support, but likely because no buyers or sellers showed up to accomplish business. No buyers or sellers showed up during spot trading. Increased cheese production is the result of increased milk production. The result is that production outpaced demand in August. It is uncertain whether the same will be seen in September and the rest of the year.

BUTTER:

The butter price remains choppy but in an overall downtrend. It is uncertain whether the price will retest the low of $1.30 established on January 13. Retail butter demand has shown signs of improving, but whether the increase will be sufficient to tighten the market is uncertain. Buyers have not seen the need to be aggressive in the spot market as manufacturers continue to offer loads of butter on the spot market.

OUTSIDE MARKETS SUMMARY:

December corn closed down 5.25 cents per bushel at $5.2300, November soybeans closed down 30.75 cents at $12.8825, and December soybean meal closed down $11.60 per ton at $359.40. December Chicago wheat closed down 14.50 cents at $6.8875. December live cattle closed down $1.35 at $220.80. November crude oil is up $0.90 per barrel at $93.31. The Dow Jones Industrial Average is down 347 points at 51,482, with the NASDAQ down 248 points at 26,820.

Monday Midday Dairy Market Summary - Milk Futures Show Substantial Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	6 Lower
SOYBEANS:	31 Lower
SOYBEAN MEAL:	$11.20 Lower
LIVE CATTLE:	$0.47 Lower
DOW JONES:	87 Points Lower
NASDAQ:	140 Points Lower
CRUDE OIL:	$0.17 Higher

MIDDAY MARKET UPDATE:

Both block and barrel cheese prices remained unchanged at $1.3075 and $1.4525 respectively, with no loads traded. The dry whey price remained unchanged at 80.50 cents, with no loads traded. Class III futures are 1-41 cents lower, with the November contracts showing the greatest weakness. There has been substantial trading activity, with the November contract showing over 1,100 contracts traded. The butter price declined 3.00 cents to close at $1.3700 with 19 loads traded. Grade A nonfat dry milk increased a penny to close at $2.18, to another new high and the highest level since May 20th. Class IV ranged from 5 cents lower to 1 cent higher. Butter futures are 0.32 -- 4.80 cents lower. Dry whey futures have not yet traded. Cheese futures are 4.10 cents lower to 0.30 cents higher. Nonfat dry milk futures are 0.25 cent lower to 0.75 cent higher.

Monday Morning Dairy Market Update - Milk Futures Show Further Weakness

OPENING CALLS:

Class III Milk Futures:	4 to 6 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	6 to 8 Lower
Soybean Futures:	21 to 24 Lower
Soybean Meal Futures:	$6 to $8 Lower
Wheat Futures:	7 to 8 Lower

MILK:

It does not appear to be a very strong start to the week, with overnight trading activity showing weakness. The October Class III contract is nearing the $15.00 level. Buyer interest in the spot cheese market remains lackluster as cheese remains available for demand. The August Cold Storage report was somewhat bearish to the market. This report, added to the milk production report, shows that milk production will remain above a year ago and the supply of butter and cheese will be sufficient for demand. Higher fuel prices are a concern as they may reduce demand as consumers try to balance their food budgets. Restaurant traffic may decrease, impacting demand from food service.

CHEESE:

Unfortunately, the block cheese price may revisit the low of the year established in early January. The price has been in a steep downtrend since mid-August and shows no sign of support. The fact that cheese inventory in August increased from July and is higher than in August 2025 does not bode well for the market. Milk production continues to increase, keeping cheese production strong.

BUTTER:

Butter has been showing weakness similar to block cheese, but the price decline has been more gradual and has taken place over a longer period of time. As with cheese, the butter price is not far from the low for the year set back in early January. The August Cold Storage report showed a decline in inventory, but the decline was less than usual, resulting in inventory being 10 percent above a year ago. 

Friday Closing Dairy Market Update - August Cheese Inventory Increased

GENERAL OVERVIEW:

Milk futures were mostly higher to close the day. Class IV futures had a strong week, closing substantially higher. Class III futures were the opposite, as the weakness in the block cheese price kept the trend lower. Dry whey was unable to offset the decline. The August Cold Storage report is neutral to bearish.

MILK:

It was not a good week for Class III milk futures, with prices closing lower than a week ago. The October and November contracts made new lows again today. October and November are below $16.00, with the December through February contracts below $17.00. The continued pressure on cheese prices does not provide an indication of a change in trend anytime soon. Class IV futures are the opposite, with the October through February contracts closing at new highs to end the week. The September Federal Order class prices will be announced on September 30.

AVERAGE CLASS III PRICES:

3 Month:	$15.75
6 Month:	$16.11
9 Month:	$16.44
12 Month:	$16.69

CHEESE:

For the week, blocks declined 4.25 cents with 16 loads traded. The weekly average price is $1.3445. Barrels remained unchanged with no loads traded. The weekly average price is $1.4525. Dry whey gained 2.50 cents with 2 loads traded. The weekly average price is 79.50 cents. American cheese inventory increased 2.4 million pounds in August according to the cold storage report released today, totaling 815.5 million pounds. This is about even with August 2025. Swiss cheese inventory decreased by 749,000 pounds, with inventory 10 percent above a year ago. Other cheese inventory increased by 2.8 million pounds, totaling 604.4 million pounds. This is 5 percent higher than a year ago. Total cheese inventory increased 4.4 million pounds, totaling 1.443 billion pounds, up 2 percent over a year ago. Cheese inventory usually declines at this time of year.

BUTTER:

For the week, butter increased 3.00 cents with 82 loads traded. The weekly average price is $1.3645. Grade A nonfat dry milk increased 9.00 cents with 18 loads traded. The weekly average price is $2.1415. Butter inventory decreased by 16.7 million pounds, totaling 315.7 million pounds. The increase was seasonal, but the amount of the decrease was less than usual. Butter inventory was 10% above August 2025. To put it in perspective, inventory in July was 3 percent below that of a year ago.

OUTSIDE MARKETS SUMMARY:

December corn closed up .75 cent per bushel at $5.2825, November soybeans closed up 1.50 cents at $13.1900 and December soybean meal closed down $1.40 per ton at $371.00. December Chicago wheat closed down 3.75 cents at $7.0325. December live cattle closed up $1.05 at $222.15. November crude oil is down $2.27 per barrel at $92.34. The Dow Jones Industrial Average is up 211 points at 51,561, with the NASDAQ up 129 points at 27,069.

Friday Midday Dairy Market Summary - Nonfat Dry Milk Holds Steady

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	3 Higher
SOYBEAN MEAL:	$1.50 Lower
LIVE CATTLE:	$0.22 Lower
DOW JONES:	418 Points Higher
NASDAQ:	147 Points Higher
CRUDE OIL:	$2.31 Lower

MIDDAY MARKET UPDATE:

The block cheese price declined 2.00 cents to close at $1.3075 with three loads traded. There were seven unfilled bids and no uncovered offers remaining at the close of spot trading. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price remained unchanged at 80.50 cents with no loads traded. Class III futures are 10 cents lower to 8 cents higher. The butter price increased 4.25 cents to close at $1.40 with 21 loads traded. There were 14 unfilled bids and 53 uncovered offers remaining, indicating the upside price potential will be limited. Grade A nonfat dry milk remained unchanged at $2.1700 with no loads traded. Class IV futures are mixed, ranging from 3 cents lower to 18 cents higher. Butter futures are 5.47 cents lower to 3.50 cents higher. The weaknes is taking place in the second half of 2027 contracts. Dry whey futures are 1.00 to 1.35 cents higher. Cheese futures are 1.10 cents lower to 0.80 cent higher. Nonfat dry milk futures are 0.20 to 1.25 cents higher. The August Cold Storage report will be released today.

Friday Morning Dairy Market Update - Butter and Cheese Buyers Remain Complacent

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	9 to 10 Lower
Soybean Futures:	11 to 12 Lower
Soybean Meal Futures:	$3 to $4 Lower
Wheat Futures:	14 to 16 Lower

MILK:

Fortunately, dry whey prices are strong; otherwise, Class III prices would be significantly lower. The price is at the highest level since February 23, 2022. The nonfat dry milk price is at the highest level since June, but continues to provide substantial support to Class IV futures. The milk supply is sufficient for demand, but not burdensome. Spot milk prices are flat, close to $2.00 above. The August Milk Production report showed milk production will continue to remain higher than a year ago, making it difficult for milk prices to increase unless demand improves and exceeds a year ago.

CHEESE:

The block cheese price may revisit the low of the year before buyers may turn more aggressive to take advantage of the low price. The price is only 4.50 cents above the low of Jan. 12. Blocks have been in a freefall since mid-August. The August Cold Storage report will be released this afternoon. I think the report will show a decrease in inventory from a year ago, but the decrease may be less than usual, resulting in inventory remaining above a year ago.

BUTTER:

Butter may follow the same pattern as block cheese and may revisit the low of the year before support may be found. The current price is 5.675 cents above the low. Retail butter demand is variable, with food service demand showing gains.

Thursday Closing Dairy Market Update - August Cattle Slaughter Was Higher Than a Year Ago

GENERAL OVERVIEW:

Class III futures closed mostly lower, while Class IV futures were mostly higher. This followed the direction of the underlying cash. Dairy cattle slaughter in August was lower than July, but higher than August 2025.

MILK:

Trading activity was moderate today despite limited volatility. Class III futures continue to erode, with new contract lows again in the October and November contracts. These contracts continue to move deeper into the $15.00 range. Some of the October contract is priced, but it still has about three weeks left to price. There could be further price erosion. Class IV futures continue to find support from the nonfat dry milk prices. The spread between October Class III and Class IV contracts is $5.01. The August Livestock Slaughter report was released today. Dairy cattle slaughter in August totaled 221,100 head. This was 6,500 less than July but up 3,700 head from August 2025. Historically, dairy cattle slaughter increases in August compared to July. This year followed the same pattern as last year when slaughter decreased. USDA will release the August Cold Storage report on Friday.

AVERAGE CLASS III PRICES:

3 Month:	$15.75
6 Month:	$16.08
9 Month:	$16.41
12 Month:	$16.65

CHEESE:

The concerning news is that bulk cheese demand in the Northeastern region is termed as weak. Some bulk cheese is being sold below the price levels seen in the CME. That does not bode well for the strength of prices throughout the rest of the year. Demand in the Central region is termed as steady. Demand in the Western region is reported as strong. However, with spot loads of cheese readily available, there is little reason for buyers to be aggressive.

BUTTER:

Cream supplies are steady with sufficient supply available for churning. Cream supply is expected to increase over time as butterfat improves in milk and ice cream production winds down. Some plants have increased schedules to six-day weeks as they prepare for holiday demand. The concern is that the price may not see much strength as buyers have been able to purchase substantial butter supplies without having to bid higher.

OUTSIDE MARKETS SUMMARY:

December corn closed down 1.50 cents per bushel at $5.2750, November soybeans closed down 0.50 cent at $13.1750, and December soybean meal closed up $1.80 per ton at $372.40. December Chicago wheat closed down 1.50 cents at $7.0700. December live cattle closed down $1.25 at $221.10. November crude oil is up $2.45 per barrel at $94.61. The Dow Jones Industrial Average is down 162 points at 51,350, with the NASDAQ up 3 points at 26,939.

Fluid Milk and Cream - Western U.S. Report 39

Farm-level milk output in the West is reported as steady, with only minimal increases over last month's volumes. In California, milk availability has loosened due to unplanned downtime at several plants, diverging from the rest of the Western region, where milk supplies remain tight. The Pacific Northwest and Mountain States report tight milk availability is pushing manufacturers to seek spot purchases to meet production needs, but they are finding very little milk available. The Southwest reports no change this week in milk volumes or demand. 

Class I demand is increasing and continues to grow progressively week over week. Class II demand is also up with pressure from some facility improvements that have taken place in the Western Region. Class III and Class IV demand remain stable. Transportation costs for all fluid milk have increased measurably week over week, with haulers reporting losses due to contracted rates no longer covering actual hauling costs. 

Cream shows a mixed tone. Cream is heavy in the Mountain States, with loads available across the region. In contrast, availability in California has tightened, and some contacts report having to purchase more spot loads than they preferred. Condensed skim milk availability remains tight, with production reported as steady. Multiple sources across all Western regions note a marked increase in demand.

Thursday Midday Dairy Market Summary - Block Cheese Shows Continued Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	3 Lower
SOYBEAN MEAL:	$4.40 Higher
LIVE CATTLE:	$1.30 Lower
DOW JONES:	244 Points Lower
NASDAQ:	79 Points Lower
CRUDE OIL:	$3.36 Higher

MIDDAY MARKET UPDATE:

The block cheese price fell 3.00 cents to close at $1.3275 with 2 loads traded. There were no unfilled bids, with 3 uncovered offers remaining at the close. The barrel cheese price remained unchanged at $1.4225 with no loads traded. The dry whey price increased 0.75 cent to close at 80.50 with no loads traded. Class III futures are 22 cents lower to 2 cents higher. The butter price slipped 0.75 cent to close at $1.3575 with 14 loads traded. There were 25 unfilled bids and 4 uncovered offers. This is the second day in which there were more bids than offers remaining at the close of spot trading. Grade A nonfat dry milk increased 2.00 cents to close at $2.1700 with 6 loads traded. Class IV futures are 12-23 cents higher. Butter futures are 0.75 cent lower to 0.55 cent higher. Dry whey futures are 0.50 cent lower to 0.25 cent higher. Cheese futures are steady to 1.90 cents lower. Nonfat dry milk futures are 0.72 – 2.37 cents higher. The August Livestock Slaughter report will be released this afternoon, indicating the volume of dairy cattle slaughtered during the month. 

Thursday Morning Dairy Market Update - Class IV Futures Continue to Find Support

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Fundamentals in the Class III market remain largely unchanged, as they have been for some time. There is little reason for prices to rise much, as milk supplies are sufficient. There continue to be numerous reports of expansions taking place. Processing facilities that have expanded have opened the door for farms to increase milk production. Although calf prices have decreased somewhat, they continue to provide significant income for the dairy. The USDA will release the August Livestock Slaughter report today. The report may show an increase in dairy cattle slaughter, but that has been offset by higher cow numbers.

CHEESE:

The block cheese price is struggling to find support, with the potential for price to revisit the low. Barrels have held despite the weakness in blocks. However, the price is likely to adjust lower, as it has in the past, to move in line with blocks. Barrels are not used in the Federal Order class price calculations, so it does not make any difference where the price is.

BUTTER:

The bounce in the butter price on Wednesday is likely to be short-lived. However, the positive development is that unfilled bids remaining at the close of spot trading on Wednesday far exceeded the remaining offers. Maybe this will be the beginning of a market shift, and butter will see increasing support.

Wednesday Closing Dairy Market Update - Class IV Futures Move Above $20.00

GENERAL OVERVIEW:

There was a slight reprieve from the bearishness in Class III futures. Trading activity was high in both Class III and Class IV contracts. Class IV futures showed strong gains, with the October and November contracts above $20.00.

MILK:

Trading activity was strong, with the October Class III contract posting over 1,000 trades, followed by November with over 800 contracts traded. Class IV trading activity was unusually high, with contracts traded through September 2027. The October and November contracts moved above $20.00, where they have not been since April 28. The increase in the nonfat dry milk price is relentless, with the spot price either steady or higher for the past 14 consecutive trading days. The August Milk Production report showed higher milk production due to cow numbers being 167,000 head more than a year ago. August was a month with a lot of hot weather, which resulted in milk per cow being one pound below a year ago. Milk per cow may rebound significantly as the hot weather is behind us. This will maintain milk output above a year ago for the rest of the year and possibly longer. USDA will release the August Livestock Slaughter report on Thursday showing the level of culling seen during the month. Even if culling was higher, the increase was offset by higher cow numbers.

AVERAGE CLASS III PRICES:

3 Month:	$15.89
6 Month:	$16.17
9 Month:	$16.47
12 Month:	$16.71

CHEESE:

Cheese production is steady in most cases. A significant volume of milk is moving to the Southeast from the Midwest to satisfy the general demand from consumers and the increased demand from school accounts. The spot price indicates the supply has not changed much from the previous week, as spot milk prices are flat class to $2.00 above class. The dry whey price moved to the highest level since February 23, 2022, at the close of spot trading.

BUTTER:

The tone of the butter market is somewhat uncertain. Cream supplies are steady and increasing, leaving sufficient supplies available for those who need to purchase for production. Ice cream production is winding down. Butter demand in some areas of the country is termed lackluster and lower than expected at the current low prices. Retail sales should begin to improve as the Fall season is here.

OUTSIDE MARKETS SUMMARY:

December corn closed down 7.75 cents per bushel at $5.2900, November soybeans closed down 7.50 cents at $13.1800, and December soybean meal closed down $.10 per ton at $370.60. December Chicago wheat closed down 8.75 cents at $7.0850. December live cattle closed up $2.90 at $222.35. November crude oil is up $2.13 per barrel at $92.65. The Dow Jones Industrial Average is down 352 points at 51,512, with the NASDAQ down 308 points at 26,936.

Wednesday Midday Dairy Market Summary - Dry Whey Moves to the Highest Price Since 2022

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$0.40 Higher
LIVE CATTLE:	$1.92 Higher
DOW JONES:	328 Points Lower
NASDAQ:	338 Points Lower
CRUDE OIL:	$1.29 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.75 cent to close at $1.3575 with 7 loads traded. The barrel cheese price remained unchanged at $1.4525 with no loads traded. The dry whey price increased 1.00 cents to close at 79.75 with 2 loads traded. This is the highest dry whey price since February 23, 2022. Class III futures are mixed, ranging from 14 cents lower to 9 cents higher. The butter price increased 2.50 cents to close at $1.3650 with 33 loads traded. Butter may have turned a corner. There were 60 unfilled bids and 10 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 2.50 cents to close at 2.1500 with 6 loads traded. Class IV futures are 1-41 cents higher in active trading. Butter futures are 0.50 cent lower to 1.12 cents higher. Dry whey futures are steady to 0.25 cent higher. Cheese futures are 1.40 cents lower to 0.10 cent higher. Nonfat dry milk futures are 1.67 -- 3.92 cents higher. 

Wednesday Morning Dairy Market Update - Uncertainty Dominates the Market

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	6 to 8 Lower
Soybean Futures:	8 to 9 Lower
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	9 to 11 Lower

MILK:

Milk production continues to increase. The increase is due to more cows in the nation's dairy herd. Milk production was expected to be higher in the August milk production report, but the increase in cow numbers was not expected. Low milk prices have not thwarted the desire to increase cow numbers. The hope is that lower milk prices will be short-lived, but not according to the current futures market. The highest Class III price seen through 2027 is $17.59. That will be much better than the $15.72 price we are looking at for October, but still nothing to get excited about. Class IV futures are better, but do show contracts through 2027 no higher than $18.50.

CHEESE:

There is little reason for cheese buyers to be aggressive in th spot market. The supply of cheese is plentiful, with current demand being met and supplies being purchased for later demand. As milk production increases, cheese production will increase, resulting in higher inventory through the end of the year than a year ago.

BUTTER:

The price is only 4 cents from the low that was last seen in early January. Buyers are active in the spot market, but not aggressive. They see no reason to be aggressive due to sufficient butter available to the market. Butter output is slowly increasing as the butterfat content in milk improves and cream supply increases.

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.