Friday Closing Dairy Market Update - September Agricultural Prices Received Index Down 1.7 Percent

GENERAL OVERVIEW:

USDA released the Agricultural Prices monthly report which indexes prices received for commodities as well as the Prices Paid Index, which calculates the costs paid for interest, taxes wages, diesel and feeds. The September Prices Received Index was down 1.7% while the Prices Paid Index was up 0.4%.

MILK:

Class III futures closed the week off, trading 3 to 23 cents lower this afternoon. The November contract fell 23 cents from Monday's settlement. Class IV was up 13 cents on the week while dry whey was nearly unchanged at 0.10 cents higher, and NDM 6.62 cents higher. The September Prices Received Index was 1.7% lower than August but 0.5% higher than September of last year. The Crop Production Index was up 3.7% from last month but up 15% from 2025. Livestock was down 4.4% from August and down 10% from last year. Producers received lower prices for cattle, eggs, hogs, and milk but more for corn. There was decreased monthly movement for cattle, wheat and other products but an increase in movement for corn, soybeans, calves and apples. The September Prices Paid Index was up 0.4% from last month and 5.2% higher than last year. Diesel fuel, complete feed, other services and concentrates were up a higher degree than the amount paid was reduced for lower hay, forages, feeder cattle, feeder pigs and herbicide. Overall, for dairy farms, prices received were lower and prices paid were higher.

AVERAGE CLASS III PRICES:

3 Month:	$16.54
6 Month:	$16.70
9 Month:	$16.88
12 Month:	$17.10

CHEESE:

For the week, the block cheese price decreased by 3.75 cents with 15 loads traded. The weekly average price was $1.7095, down $2.90 from last week. The barrel cheese price closed 0.50 cents higher with no loads traded. The weekly average price was $1.7230, up 1.90 cents from last week. The dry whey price decreased by 0.25 cents with 3 loads traded. The weekly average price is 83.10 cents, down 4.25 cents from last week.

BUTTER:

For the week, the butter price increased by 1.75 cents with 46 loads traded. The weekly average price was $1.3145, down 3.45 cents from last week's average. Grade A nonfat dry milk increased 1.75 cents with 7 loads traded. The weekly average price was $2.0720, down 8.30 cents from last week's average.

OUTSIDE MARKETS SUMMARY:

December live cattle closed down $5.35 at $220.95. December crude oil is up .99 per barrel at $102.99. The Dow Jones Industrial Average is down 572 points at 51,770 and the NASDAQ is down 747 points at 25,43

Friday Midday Dairy Market Summary - Cheese Lower as Cheddar Blocks Fall Sharply

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$0.25 Lower
LIVE CATTLE:	$1.125 Lower
DOW JONES:	478 Points Lower
NASDAQ:	802 Point Lower
CRUDE OIL:	$2.71 Higher

MIDDAY MARKET UPDATE:

The block cheese price decreased by 13.75 cents to close at $1.5975 with three loads traded. There were two bids and two offers left at the close. The barrel cheese price was unchanged at $1.7250 with no loads traded. Dry whey increased by 2 cents closing at 84.0 cents with two loads traded. Class III futures are 8 to 29 cents lower. The butter price increased by 3.75 cents, closing at $1.3575 with 11 loads traded. Grade A nonfat dry milk increased 2.5 cents to close at $2.1125 with no loads traded. There were 10 bids and five offers left at the close. Class IV futures have not yet traded Friday. Butter futures are 0.1 to 2.2 cents higher. Dry whey futures are 0.125 to 0.875 cents lower. Cheese futures are 0.6 to 2.3 cents lower. Nonfat dry milk futures are 2.85 to 4.25 cents higher with expanded 8 cent limits Friday.

Fluid Milk and Cream - Western U.S. Report 44

In California, milk production is strong, with some reporting coops are not able to accept all the milk from handlers. Stakeholders note stronger-than-normal spot milk demand this week. According to the National Agricultural Statistics Service (NASS), in September 2026 milk production in California was stable year over year. Federal milk market order data shows producer butterfat tests increasing, rising from an average of 4.21 percent between September 2024 and September 2025 to an average of 4.25 percent between September 2025 and September 2026. 

Farm-level milk output is also stronger in New Mexico and Arizona. Some downtime at a Southwest cheese facility diverted milk to balancing plants this week. In contrast to other regions, September 2026 milk production in Arizona was reported down 4.9 percent year over year, totaling 350 million pounds. Regional contacts report herd sizes are being maintained and expected to remain stable into 2027. 

In the Pacific Northwest, milk production is steady. Additional farms in Washington reported positive Highly Pathogenic Avian Influenza (HPAI) tests in dairy cows. Producers are working closely with veterinary experts and regulatory agencies to ensure effective biosecurity measures to limit further transmission. No impact on overall milk output or availability is reported at this time. The Mountain States report balanced farm-level output. According to the latest NASS report, September 2026 milk production in Idaho increased 3.2 percent from September 2025. Idaho stakeholders indicate handlers plan to add cows and expand facilities in 2027. 

Holiday production is shifting demand across all classes. Class I eggnog demand is growing. Class II demand is increasing with stronger heavy cream and half-and-half sales. Class III production is moving towards cream cheese and Class IV butter demand is showing an uptick over the past week. Cream availability varies by region. Higher cream demand is reported in Arizona where spot supplies are minimal. Cream availability in California continues to improve week over week and Idaho reports plentiful supplies. Cream multiples moved slightly higher at the top of both regional ranges. Demand for condensed skim milk strengthened this week, highlighting limited availability.

Friday Morning Dairy Market Update - USDA to Announce Agricultural Prices

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	0.5 to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 3 Lower
Soybean Meal Futures:	$1.00 to $1.30 Lower
Wheat Futures:	2 to 4 Higher

MILK:

Thursday's divergence from weak nearby trade and supportive buying in the deferred contracts shows the market's confidence in demand coming as we enter the new year. USDA's announcement to purchase $165.5 million in dairy products produced in America as well as many other commodities for a total investment of $472.5 million. The last time we had a program like this was from May 2020 through May 2021. It helped boost low prices coming out of COVID at that time. While this program is a much smaller investment, it should help with more dairy utilization.

CHEESE:

Cheese prices came under pressure on Thursday as it seemed like every other product found strength in the cash market, yet cheese traded lower for the first time this week. Futures saw weakness in the front months while the deferred contracts traded higher by the end of the day. Cheese futures are trading slightly higher this morning with both the October and November showing 0.1-0.2 cent gains. The deferred contracts have not yet been traded.

BUTTER:

Butter traded higher Thursday, gaining strength after a 3.5 cent higher spot market close. Butter has not yet traded on the overnights, but the market expects some follow through strength after Thursday. Butter was not called out as one of the dairy products to be purchased in USDA's announcement Thursday; however, there is speculation that it will be included.

Thursday Closing Dairy Market Update - Markets Decline

GENERAL OVERVIEW:

This morning USDA announced a plan to purchase $472.5 million of American-grown, American-produced food to help support farmers and those in need of food. $165.5 million was allocated for dairy purchases. Secretary Rollins says this will take American milk and cheese straight from our farms to those in need rather than being wasted.

MILK:

Class III futures exhibited some major price divergence today as the November contract was trading over 40 cents lower this afternoon while December and beyond were trading as much as 20 cents higher. Class IV traded similarly with November trading as much as 21 cents lower this afternoon while the January contract was 45 cents higher. The announcement released this morning for the USDA to purchase American grown food products gave new hope to milk and cheese futures as the last time a similar program was implemented, it successfully boosted the market. The "Farmers to Families Food Box" program in 2020-2021 provided fresh produce, dairy, cooked meats and seafood valued at over $5 billion to needy Americans. While this is significantly less of an investment, it still should help with dairy product utilization. Nonfat Dry Milk is the biggest market mover today with most contracts trading 4 cents higher, the current limit for daily trade. Strength was due to spot market moving 4.7 cents higher.

AVERAGE CLASS III PRICES:

3 Month:	$16.78
6 Month:	$16.75
9 Month:	$16.87
12 Month:	$17.08

CHEESE:

The spot market experienced the first day of lower priced trade for cheddar cheese blocks of the week, trading 1 cent lower than yesterday. Cheese futures, much like we see in milk futures are lower on the nearby contracts this afternoon with the November down 3.9 cents near the end of the day and the January 2.2 cents higher. Some of the deferred strength could be accounted for the announcement for dairy product purchases to come for needy Americans.

BUTTER:

Butter also received a boost from the spot market today, which closed 3.5 cents higher. Futures have responded positively with the afternoon trade up 0.875 cents on the November board month. Nearby seasonal baking demand is suspected for current strength.

OUTSIDE MARKETS SUMMARY:

December corn closed down .50 cent per bushel at $4.5125, January soybeans closed down 3.25 cents at $12.3475 and December soybean meal closed down $6.40 per ton at $329.30. December Chicago wheat closed up 4.75 cents at $6.0375.

December live cattle closed down $1.03 at $226.30. December crude oil is down .78 per barrel at $102.00. The Dow Jones Industrial Average is down 132 points at 52,342 and NASDAQ is down 365 points at 26,184.

Thursday Midday Dairy Market Summary - Cash Markets Rally

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	6 Lower
SOYBEAN MEAL:	$6.50 Lower
LIVE CATTLE:	$1.125 Lower
DOW JONES:	198 Points Lower
NASDAQ:	29 Points Lower
CRUDE OIL:	$1.50 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased by 1 cent to close at $1.7350 with no loads traded. The barrel cheese price was unchanged at $1.7250 with no loads traded. Dry whey increased by 1 cent, closing at 82.0 cents with no loads traded. Class III futures are 31 cents lower to 12 cents higher. The butter price increased by 3.5 cents, closing at $1.32 with four loads traded. Grade A nonfat dry milk increased 4.75 cents to close at $2.0875 with no loads traded. Class IV futures are 1 to 21 cents lower. Butter futures are 1.675 cents lower to 0.85 cents higher. Dry whey futures are unchanged to 1.225 cents lower. Cheese futures are 2.6 cents lower to 0.9 cents higher. Nonfat dry milk futures are limit up (4 cents) higher.

Thursday Morning Dairy Market Update - Will Wednesday's Price Volatility Continue

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	7 to 10 Lower
Soybean Meal Futures:	$1.50 to $2.00 Lower
Wheat Futures:	1 to 2 Lower

MILK:

Volatility is the best way to describe the Class III market as well as dry whey and nonfat dry milk Wednesday. Class III struggled to find direction as it traded mixed most of the day, with some midday and end of the trading session ticks higher from cheese strength. Class IV has had limited trading this week but bids and offers on the futures contracts showed flat trade is possible. Dry whey is still reaping the benefits of a protein market boom, but has found its limit where world market alternatives can be found cheaper. Overnight markets have Class III trading 13 cents lower to 11 cents higher.

CHEESE:

The cheese story has been centered around cash trade lately. Amid every other market falling apart, cheddar cheese barrel and blocks inched another 0.5 cent higher on Wednesday. Futures struggled with outside pressure from the dairy complex to hold onto much for gains, but the demand is there as the holidays quickly approach.

BUTTER:

Butter markets were mixed throughout Wednesday with the cash prices weaker. Seasonal baking will keep the nearby trade looking for opportunities to purchase butter when prices are best. A bit of a concerning fact on Wednesday was the extremely large amount of spot loads offered on the cash market. There were a normal number of bids available, but the offers greatly outweighed the bids into the close. This could be an indication of manufacturers trying to offset large quantities of product. However, with the Cold Storage report showing slightly less inventory from last month and production down from the previous month, it could just be timing of available product and the possible opportunity to sell with seasonal baking demand.

Wednesday Closing Dairy Market Update - Markets Decline

GENERAL OVERVIEW:

Initially morning futures trade was higher across the board but falling spot market prices eventually put pressure on the market and futures slid lower into the afternoon.

MILK:

Class III futures had some early strength in the day by support from higher cheese prices. Eventually cheese became weaker and brought Class III down with it but late day trade gained 13 cents on the November contract. At last call Dry Whey traded mixed today, in spite of the spot market falling 3.25 cents, yet there was limited trading activity after the spot market settled. Nonfat Dry Milk attempted to buck the trend with higher settlements on some futures months but late-day trade did lose ground with the rest of the market. The spot market was 2 cents lower for NDM. Class IV futures did not trade today however, bids and offers indicated that prices were flat.

AVERAGE CLASS III PRICES:

3 Month:	$16.78
6 Month:	$16.75
9 Month:	$16.87
12 Month:	$17.08

CHEESE:

The spot market confirmed the nearby strength of cheese demand as both cheddar blocks and barrels increased 0.5 cent in the face of the rest of the products trading lower for the day. Futures showed some strength in the face of the bearish tone from other dairy markets but eventually joined the crowd in weaker prices by the afternoon with a late pull higher in the nearby months.

BUTTER:

Butter futures were lower today, trading 0.75 to 1.625 cents lower on the day. Market is responding to the spot market trade which was off by 2.5 cents. 16 loads traded and while there were still 7 bids remaining, the sellers really came to the market today. At the close there were 147 loads being offered yet. This huge amount of butter being offered on the spot market trade sets a bearish tone that sellers have plenty of product to move and implies that buyers can be patient at these prices.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.00 cents per bushel at $4.5175, January soybeans closed down 5.00 cents at $12.3800 and December soybean meal closed up $1.10 per ton at $335.70. December Chicago wheat closed down 11.25 cents at $5.9900.

December live cattle closed down $3.53 at $227.33. December crude oil is up 2.89 per barrel at $102.79. The Dow Jones Industrial Average is up 84 points at 52,462 and the NASDAQ is up 7 points at 26,485.

Wednesday Midday Dairy Market Summary - Mixed Cash Markets

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$41.70 Higher
LIVE CATTLE:	$2.10 Lower
DOW JONES:	138 Points Lower
NASDAQ:	1 Point Higher
CRUDE OIL:	$3.08 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased by 0.5 cents to close at $1.7450 with 3 loads traded. The barrel cheese price was 0.5 cents higher at $1.7250 with no loads traded. Dry Whey decreased by 3.25 cents closing at 84.25 cents with no loads traded. Class III futures are 3 cents to 28 cents higher. The butter price decreased by 2.5 cents, closing at $1.2850 with 16 loads traded. There were 7 bids and 147 offers remaining at the close. Grade A nonfat dry milk decreased 2 cents to close at $2.0400 with 5 loads traded. Class IV futures have not yet been traded today. Butter futures are 0.4 to 1.9 cents lower. Dry whey futures are 0.85 cents lower to 0.7250 cents higher. Cheese futures are 0.1 to 1.6 cents higher. Nonfat dry milk futures are 0.3 to 1.85 cents lower.

Wednesday Morning Dairy Market Update - Investments Increasing

OPENING CALLS:

Class III Milk Futures:	2 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	0 to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 3 Higher
Soybean Futures:	3 to 7 Higher
Soybean Meal Futures:	$0.40 to $1.00 Higher
Wheat Futures:	1 to 4 Higher

MILK:

Many states are expected to upgrade and add manufacturing infrastructure over the next four years with the biggest investments allocated for milk and cream infrastructure. More processing plants and bigger capacity are planned to help with both the growing milk production and the increased demand seen worldwide. Technology and innovation lead the charge as the industry is expected to change rapidly by 2035, adding new capabilities to support anticipated needs. Many jobs are expected to be created from these investments as the U.S. Bureau of Labor Statistics projects a 5.6% growth expected. Not a lot of activity has happened on overnight trade. Class III November is up 3 cents. Nonfat dairy milk (NDM) is trading 0.55 to 1.67 cents higher. No other products have traded yet.

CHEESE:

Cheese is expected to continue with volatile prices over the coming months. Holiday buying is helping the cash market with increased demand seen in mozzarella, parmesan and blue cheese. Cheddar blocks have been driving nearby prices for cheese and Class III futures as spot buyers look for opportunities to buy products nearby.

BUTTER:

Butter futures have climbed from Oct. 8 lows with increase buying in the spot market as well as some tightness in butter supplies in the short term. Stocks are down from last month. However, the overall market sentiment is bearish. Production is up 6.3% when compared to August 2025; however, the Cold Storage report showed inventories up 16% when compared to September 2025. The monthly data has inventory falling from August as well as production falling from July, but the overall story is bearish year over year.

Tuesday Closing Dairy Market Update - Higher Afternoon Dairy Prices

GENERAL OVERVIEW:

With a rough start to the day with most markets trading lower over the evening hours to mixed trade by midday, the dairy market ended the day higher on nearly every commodity outside of Dry Whey.

MILK:

Class III futures ended the day with gains of 8 to 18 cents, coming slightly off of the highs but still a respectable close. Class IV had limited trading today with the December contract up 13 cents from a trade earlier in the day. NDM ended the day with futures gaining 1.5 to 2.05 cents, bouncing off the lows after some limit lower moves late last week. Dry Whey was the only product to trade lower this afternoon with losses of 0.3 to 0.5 cent. The spot market was unchanged for both dry products. Protein demand is still high so fundamentally not much has changed.

AVERAGE CLASS III PRICES:

3 Month:	$16.71
6 Month:	$16.75
9 Month:	$16.88
12 Month:	$17.09

CHEESE:

Cheese is battling with high production and big stocks. While seasonal demand has helped the spot market and nearby demand, overall, the amount of cheese being produced and in inventories are still well above levels from last year. Cheese production and inventory is down from last month, so while we prepare for holidays, there could be additional price inflation in the near term.

BUTTER:

Butter traded 0.6 to 2.2 cents higher this afternoon after the spot market traded 1 cent higher. There is still plenty of inventory, although much like cheese, as we head closer to the holiday season, the spot market may find some volatility as buyers try to boost inventory levels ahead of the baking season. Butter inventories are 16% higher than last year at this time, much higher than the increase in production year over year.

OUTSIDE MARKETS SUMMARY:

December corn closed down 6.25 cents per bushel at $4.4875, November soybeans closed down 12.00 cents at $12.2925 and December soybean meal closed down $5.60 per ton at $334.60. December Chicago wheat closed down 5.75 cents at $6.1025.

December live cattle closed down $0.35 at $230.85. December crude oil is down 1.86 per barrel at $99.90. The Dow Jones Industrial Average is up 15 points at 52,377 and the NASDAQ is up 308 points at 26,477.

Tuesday Midday Dairy Market Update - Class III Higher

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$4.50 Lower
LIVE CATTLE:	$0.30 Lower
DOW JONES:	2 Points Lower
NASDAQ:	304 Points Higher
CRUDE OIL:	$1.58 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 1 cent to close at $1.7400 with 6 loads traded. The barrel cheese price was unchanged at $1.7200 with no loads traded. Dry Whey was unchanged at 84.25 cents with 1 load traded. Class III futures are 1 cent to 23 cents higher. The butter price increased by 1 cent, closing at $1.3100 with 8 loads traded. Grade A nonfat dry milk was unchanged at $2.0600 with no loads traded. Class IV futures are 13 cents higher. Butter futures are 0.2 cents lower to 2 cents higher. Dry whey futures are 0.05 to 0.5 cents lower. Cheese futures are 0.1 to 2.2 cents higher. Nonfat dry milk futures are 1.52 to 2.55 cents higher.

Tuesday Morning Dairy Market Summary - Tightening Dairy Supplies

OPENING CALLS:

Class III Milk Futures:	2 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	4 to 7 Higher
Soybean Meal Futures:	$1.40 to $1.60 Higher
Wheat Futures:	1 to 2 Lower

MILK:

Fluid milk is available in all regions. The Central region has recently seen distribution-caused tightness for cheese production as much of the milk supply went toward bottling efforts while the market gauges school demand with the new initiative to add whole milk to school menus. High transportation costs have also added to the difficulties of moving products to lower supply areas. On the positive side, the Central region has had great weather to improve cow comfort and give a recent boost to milk production. Overnight trade is quiet heading into Tuesday, with Class III trading 2 to 9 cents higher.

CHEESE:

Cheese continues to see strong demand for mozzarella. Cheddar supply will be temporarily shorter as production has had some issues with downtime and quality issues. Holiday purchasing has begun and can be attributed to the strength seen in the spot market early last week. Export demand for cheese is especially strong in the West. However, weaker domestic food service demand is weighing on cheese prices.

BUTTER:

Butter is waiting for the seasonal buying to kick in. However, supplies are adequate despite slightly lower inventories as reported Friday, Oct. 23, in the Cold Storage report. Cream is available across all regions and butter production is steady. Demand from Mexico is taking some of the cream supply, but there is plenty to go around. 

Monday Closing Dairy Market Update - Markets Mostly Lower to Start the Week

GENERAL OVERVIEW:

Monday has been a day of decline in most of the dairy markets. Cheese futures, Class III and Dry Whey futures all had small gains this afternoon on the November contract, but overall prices were lower across the board. Milk production is steady currently; stocks are slightly down but supply is available for most dairy products.

MILK:

Class III futures were mixed this afternoon with the November contract trading up 9 cents and the deferred contracts trading as much as 25 cents lower. Fluid milk supplies are steady to stronger this week with the optimal weather conditions for cow comfort in many parts across the country, especially in the Midwest. Milk supplies are the tightest in the Southwest but improving. The Central region is seeing the biggest bottlenecks with fluid milk as demand from bottling has reduced the amount of milk available for cheese production. For the weekly grocery store activity, advertisements increased 22% for conventional dairy and organic increased 23% from last week. Cheese remains at the top for ad promotions.

AVERAGE CLASS III PRICES:

3 Month:	$16.60
6 Month:	$16.66
9 Month:	$16.83
12 Month:	$17.04

CHEESE:

Cheese futures were mixed this afternoon with November up 0.9 cents and the deferred contracts down as much as 1.8 cents. Cheese production is steady across the country with plenty of milk available. Mozzarella demand remains strong as we saw last week while Cheddar production is experiencing downtime and quality issues yet there is still plenty of product available. In the East, cheese production and demand are stable with retail promotions and advertisements more frequent than previous year's levels. The Central region is struggling with distribution issues and fluid milk availability issues. The West is seeing a strong demand for exports and has plenty of milk and cream available to maintain production.

BUTTER:

Butter traded lower this afternoon, finishing the day with trade down 0.25 to 2 cents. Butter demand is stronger domestically over the last week. Requests from retailers have been picking up in the West. The East and Central regions have been reporting steady demand. Cream supplies are somewhat tighter in parts of the country yet manufacturers are able to meet their needs. Mexico is still in demand of spot cream. Bulk butter overages range from 2 cents below to 5 cents above market across all regions.

OUTSIDE MARKETS SUMMARY:

December corn closed down 1.00 cent per bushel at $4.5500, November soybeans closed down 15.25 cents at $12.4125 and December soybean meal closed down $5.90 per ton at $340.20. December Chicago wheat closed down 9.00 cents at $6.1600.

December live cattle closed up $0.08 at $231.20. December crude oil is down 1.51 per barrel at $101.76. The Dow Jones Industrial Average is up 146 points at 52,361 and the NASDAQ is up 214 points at 26,169

Monday Midday Dairy Market Summary - Butter, Cheese and NDM Lower

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$0.10 Lower
LIVE CATTLE:	$0.225 Higher
DOW JONES:	546 Points Lower
NASDAQ:	17 Points Higher
CRUDE OIL:	$3.40 Higher

MIDDAY MARKET UPDATE:

The block cheese price decreased 0.5 cents to close at $1.7300 with 3 loads traded. The barrel cheese price was unchanged at $1.7200 with no loads traded. Dry Whey was unchanged at 84.25 cents with no loads traded. Class III futures are 20 cents lower to 14 cents higher. The butter price decreased by 4 cents, closing at $1.3000 with 7 loads traded. Grade A nonfat dry milk decreased 3.5 cents to close at $2.0600 with 2 loads traded. Class IV futures have not yet been traded today. Butter futures are 0.25 to 2.4 cents lower. Dry whey futures are still 0.5 cents higher on the November contract but have not traded over the last hour. Cheese futures are 0.9 cents higher to 1.7 cents lower. Nonfat dry milk futures are 0.5 to 2.15 cents lower.

Monday Morning Dairy Market Update - Cheese and Butter Stocks Lower This Month

OPENING CALLS:

Class III Milk Futures:	2 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	3 to 4 Lower
Soybean Futures:	15 to 17 Lower
Soybean Meal Futures:	$5.00 to $6.00 Lower
Wheat Futures:	1 to 2 Higher

MILK:

Class III futures are mixed on the overnight trade. To recap some of the information we received last week, milk production was lower month over month, but higher year over year. The Livestock Slaughter September report showed dairy cow slaughter up 7,600 head year over year. The Livestock, Dairy and Poultry Outlook report cut the milk output estimates for 2026 and 2027 from earlier expectations. Overall, expectations show higher prices expected, yet still big production estimates.

CHEESE:

Overnight trade for cheese has been quiet to start off the week. From the Cold Storage report last Friday, American cheese is 2% lower than last month's inventory and 2% lower than one year ago. Total natural cheese was down 1% from last month but up 2% year over year. Cheese blocks were the main story last week with a strong start to the week and some pull back toward the end of the week.

BUTTER:

Overnight trade is lower in the deferred months for butter futures. The Cold Storage report will be a difficult one to decipher in terms of its direct impact on the market. On one hand, the butter inventory is down 5% from last month and going into the holiday baking season on lower stocks is not ideal. However, it is difficult to get too excited given butter stocks are up 16% from a year ago.

Friday Closing Dairy Market Update - September Cold Storage Report Released

GENERAL OVERVIEW:

Natural cheese stocks and butter stocks were both down from last month's report, however still higher than September 2025. Grade A Nonfat Dry Milk falls the limit or near the futures daily limit after another tough day in the spot market.

MILK:

Class III Milk was mostly lower this afternoon with the December down 42 cents while the October fell 4 cents. The milk production report was mostly as expected this week with less milk produced from last month by quite a bit more milk produced when compared to last year. Class IV Milk did not trade today. For the week, Class III climbed 38 cents on the November contract peaked mid week with the highest levels traded since June. On the spot market, NFDM had 17 loads traded this week for a weekly average of $2.1550, which was down 5.55 cents from last week's average.

AVERAGE CLASS III PRICES:

3 Month:	$16.63
6 Month:	$16.74
9 Month:	$16.90
12 Month:	$17.09

CHEESE:

Cheddar blocks had 19 loads traded this week at an average price of $1.7385. That is 19.90 cents higher than last week's weekly average of $1.5395. Cheddar barrels climbed 8 cents this week with no loads traded for an average of $1.7040, up 19.45 cents from last week's average price. Dry Whey started the week off on Monday with an all-time high price traded of 89.5 cents but fell 5.25 cents to today's close of 84.25 cents. The current weekly average with 1 load traded this week, came in at 86.35 cents, down 1.95 cents from last week's average. The Cold Storage report showed the total natural cheese stocks in refrigerated warehouses fell 1 percent from last month but were 2% higher than September 2025. American cheese stocks were 792,213,000 pounds, down 2% from both last month and last year. Swiss was down 4% from last month at 22,868,000 pounds, yet up 8% year over year. Other natural cheeses totaled 613,475,000 pounds which was an increase of 8% year over year but close to last month's total.

BUTTER:

Butter had 30 loads traded this week with a decline of 4.5 cent from Monday. The current weekly average is $1.3490, which is 3.80 cents higher than last week's average price of $1.3110. On the Cold Storage Report today, butter stocks were 295,673,000, which was down 5% from one month ago yet 16% higher than September 2025. This does help explain some of the recent buying seen, but overall, the market is still sitting on a large volume of butter stocks.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.50 cents per bushel at $4.5600, November soybeans closed up 3.50 cents at $12.5650 and December soybean meal closed down $1.20 per ton at $346.10. December Chicago wheat closed up .25 cent at $6.2500. 

Friday Midday Dairy Market Update - Spot Cheese Blocks and Butter Higher

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	5 Higher
SOYBEAN MEAL:	$0.10 Lower
LIVE CATTLE:	$0.225 Higher
DOW JONES:	546 Points Lower
NASDAQ:	17 Points Higher
CRUDE OIL:	$3.40 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1 cent to close at $1.7350 with one load traded. The barrel cheese price was unchanged at $1.7200 with no loads traded. Dry whey was unchanged at 84.25 cents with no loads traded. Class III futures are 45 cents lower to 29 cents higher. The butter price increased by 1 cent, closing at $1.3400 with one load traded. Grade A nonfat dry milk decreased 4 cents to close at $2.0950 with five loads traded. Class IV futures have not yet been traded Friday. Butter futures are 0.275 to 1.05 cents lower. Dry whey futures are unchanged to 0.575 cents lower. Cheese futures are 0.275 cents to 0.5750 cents lower. Nonfat dry milk futures are 3.4 to 4 cents lower.

Friday Morning Dairy Market Update - Cold Storage Report To Be Released Today

OPENING CALLS:

Class III Milk Futures:	10 to 35 Lower
Class IV Milk Futures:	5 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$0.50 to $1.00 Higher
Wheat Futures:	1 to 4 Lower

MILK:

The September Milk Production report was released Thursday afternoon. While milk production was lower than last month, it was still well above September 2025 by 2.7%. We have a greater number of milk cows this year as well as more production per cow. The biggest states for growth were Kansas and South Dakota. The third quarter of 2026 produced 59.5 billion pounds of milk, which is 2.3% more than last year. The drop from September to October was somewhat expected, but it is well overshadowed by the big year-over-year increases we've seen nearly every Milk Production report this year.

CHEESE:

Overnight trade for cheese is weaker, trading 0.3 to 3.7 cents lower. The expectation for trade Friday is neutral given the weight the market is putting on the Cold Storage report set to be released Friday afternoon. If the spot market is any indication, inventories may be feeling pretty tight this month as buyers position themselves ahead of the holiday season.

BUTTER:

Overnight trade has been quiet, much like we expect to see in the day trade Friday. Just like cheese, the Cold Storage report will bring a lot of answers to questions on inventories for butter. The holiday baking season is around the corner and if the market feels overstocked or tight, it can make a big difference in how the futures markets trade. 

Thursday Closing Dairy Market Update - September Milk Production Up 2.7 Percent

GENERAL OVERVIEW:

Milk production in the 24 major States was up 2.7% from September 2025 totaling 18.7 billion pounds. From last month, milk production fell 580 million pounds in the selected 24 States.

MILK:

While milk production was higher than last year, it did decline from last month as expected but the total milk production for the year is trending well above last year's totals. For 3rd quarter, milk production totaled 59,529 million pounds, up 2.3 percent from 2025. The number of milk cows on farms in the 24 major States was 9.30 million head, 162, 000 head more than last year and 24,000 head more than last month. Production per cow was also higher, averaging 2,012 pounds for September, 18 pounds higher than September 2025. USDA also released their Livestock Slaughter report today. For dairy cows, September slaughter totaled 234,800 head, this is up 13,700 head from last month and up 7,600 head from September of 2025. Dairy cows accounted for 10 percent of all cattle slaughtered from January to September under federal inspection. So far this year, the United States has slaughtered 2,021,700 dairy cows through the month of September.

AVERAGE CLASS III PRICES:

3 Month:	$16.73
6 Month:	$16.91
9 Month:	$17.06
12 Month:	$17.24

CHEESE:

Cheddar blocks had a small rebound of 2.25 cents today in the cash trade. It was the only product on the spot market to have a daily change in price. Cheese futures were mixed this afternoon trading anywhere from 0.1 cents lower to 2.6 cents higher. Traders expect the market to be quiet ahead of Friday's Cold Storage report.

BUTTER:

Butter was unchanged in the spot market earlier today with 24 loads traded. There were a lot of buyers and sellers participating in the butter trade today despite the flat price action. Futures were trading lower by last call today, from unchanged to down 1.8 cents. Much like cheese, butter is waiting for the Cold Storage report for more market direction.

OUTSIDE MARKETS SUMMARY:

December corn closed down 2.75 cents per bushel at $4.6050, November soybeans closed up 7.75 cents at $12.5300 and December soybean meal closed down $1.00 per ton at $347.30. December Chicago wheat closed down 3.50 cents at $6.2475.

December live cattle closed steady. December crude oil is up 1.90 per barrel at $99.05. The Dow Jones Industrial Average is up 11 points at 52,867 and the NASDAQ is down 694 points at 26,008.

Fluid Milk and Cream - Western U.S. Report 43

In California, milk production is strengthening, while stakeholders indicate demand for spot milk loads is up this week. Handlers report milk production is bouncing back from higher than typical temperatures during the first week of October. However, some processors indicate October 2026 milk production is down somewhat compared to October 2025. 

Farm level milk output is stronger in Arizona and New Mexico. 

In the Pacific Northwest, milk production varies from steady to stronger. According to the latest milk production report from the National Agricultural Statistics Service, August 2026 milk production for Oregon is up 7.7 percent compared August 2025. 

Seasonal fall conditions have progressed more in the mountain states and farm level milk output is strengthening. Spot loads are available in the mountain states and Idaho stakeholders indicate inquiries have been more frequent. No changes in Class I, II, III, or IV demands are noted this week. 

Cream production is meeting needs and loads are more available for some parts of the region. Cream multiples moved slightly higher at the top of both ranges. Condensed skim milk availability is steady. Demand for condensed skim milk is stronger.

September Milk Production up 2.7 Percent

September Milk Production up 2.7 Percent        

Milk production in the 24 major States during September totaled 18.7 billion pounds, up 2.7 percent from September 2025. August revised production, at 19.3 billion pounds, was up 2.5 percent from August 2025. The August revision represented an increase of 132 million pounds or 0.7 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,012 pounds for September, 18 pounds above September 2025.   The number of milk cows on farms in the 24 major States was 9.30 million head, 162,000 head more than September 2025, and 24,000 head more than August 2026.   

July-September Milk Production up 2.3 Percent  

Milk production in the United States during the July - September quarter totaled 59.5 billion pounds, up 2.3 percent from the July - September quarter last year.  The average number of milk cows in the United States during the quarter was 9.72 million head, 39,000 head more than the April - June quarter, and 172,000 head more than the same period last year. 

Thursday Midday Dairy Market Update - Cheddar Blocks Rebound

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	9 Higher
SOYBEAN MEAL:	$1.30 Higher
LIVE CATTLE:	$0.70 Lower
DOW JONES:	128 Points Lower
NASDAQ:	670 Points Lower
CRUDE OIL:	$2.11 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 2.25 cents to close at $1.7250 with 1 load traded. The barrel cheese price was unchanged at $1.7200 with no loads traded. Dry Whey was unchanged at 84.25 cents with no loads traded. Class III futures are 4 cents lower to 29 cents higher. The butter price was unchanged at $1.3300 with 24 loads traded. Grade A nonfat dry milk was unchanged at $2.1350 with no loads traded. Class IV futures are 17 cents higher on the November contract. Butter futures are unchanged to 1.825 cents lower. Dry whey futures are 0.25 to 1.35 cents lower. Cheese futures are 0.1 cents lower to 2.9 cents higher. Nonfat dry milk futures are 0.65 to 1.325 cents higher.

Thursday Morning Dairy Market Update - September Milk Production Report Today

OPENING CALLS:

Class III Milk Futures:	10 to 30 Lower
Class IV Milk Futures:	5 to 15 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1.00 to $1.70 Lower
Wheat Futures:	2 to 4 Lower

MILK:

The September Milk Production report will be released later Thursday. After seeing the USDA's dairy market outlook last week, the assumption is that milk production will be reduced from September's report. A small, expected reduction in an already huge amount of supply feels more like taking a pond's worth of water out of the ocean; however, with the demand the market has had recently, we've come to count on the ample availability of milk in the market. Another report to be released later Thursday will be NASS's monthly commercial slaughter data. For dairy, the market is watching the amount of cull cows going to slaughter. An increase could signal a reduction in milk supply. Overnight markets are trading 1 to 27 cents lower.

CHEESE:

Cheese has had an impressive run higher this month in both the spot market and the futures market. Wednesday's decline in cheddar blocks, while a large decline of 9.75 cents, is still well above last week's average price. Futures are currently trading steady to 1.6 cents lower. The Cold Storage report will be released Friday for a better look at current inventories.

BUTTER:

Butter has not yet traded on the overnight markets. Thursday's trade is expected to follow direction from the cash market. Butter was lower Wednesday following cheese and nonfat dry milk. Butter output has fallen from its peak in the first quarter of the year, despite the large amounts of cream available.

Wednesday Closing Dairy Market Update - November Advanced Class Prices Announced

GENERAL OVERVIEW:

The November Class I base price was $20.27/cwt, up $1.39 from October and $3.52 from one year ago. The Base Skim Milk Price for Class I was $16.03/cwt, an increase of $1.91 from October and $5.41 higher than November 2025.

MILK:

Class III futures fell 61 cents on the November contract Wednesday while Class IV fell 33 to 37 cents. Nonfat Dry Milk was down the limit of 4 cents across all contracts. The weakness in cash prices brought a lot of selling pressure across all products. Class III had a difficult time overcoming the weakness in Cheddar Cheese blocks in spot trade, taking back a big portion of the rally from early this week. Blocks were down 9.75 cents, Nonfat Dry Milk was down 5.25 cents, indicating that follow-through selling is possible tomorrow in the futures trade. The market is still dealing with high supplies of milk despite the recent futures rally, so fundamentally, we were due for a setback.

AVERAGE CLASS III PRICES:

3 Month:	$16.62
6 Month:	$16.91
9 Month:	$17.11
12 Month:	$17.29

CHEESE:

Cheddar Blocks falling 9.75 cents is a big move in one day, however it is still well above the weekly average from last week. Barrels did not trade Wednesday but most likely would be feeling the pressure as well. The Cold Storage report on Friday will give a better indication of the current supply of cheese. While the spot market has been hot as of late, cheese appears to be readily available.

BUTTER:

Butter was not excluded from the spot market sell off Wednesday, closing down 3 cents. Futures were a bit more forgiving than the price action seen on other dairy products. The market closed mixed with November up 0.5 cents while the January contract was down 0.45 cents. The advanced butterfat pricing factor was $1.3730 per pound on today's report, down sharply from $1.5024 reported in October.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.25 cents per bushel at $4.6325, November soybeans closed down 3.00 cents at $12.4525 and December soybean meal closed down $.40 per ton at $348.30. December Chicago wheat closed down 15.00 cents at $6.2825.

December live cattle closed up $0.95 at $231.13. December crude oil is down .11 per barrel at $97.71. The Dow Jones Industrial Average is up 360 points at 52,856 and NASDAQ is up 278 points at 26,702.