Thursday Midday Dairy Market Update - May Brings Higher Dairy Prices

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$0.31 Lower
LIVE CATTLE:	$0.20 Lower
DOW JONES:	116 Points Higher
NASDAQ:	304 Points Higher
CRUDE OIL:	$0.19 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 2.5 cents, closing at $1.7550 with eight loads traded. The barrel cheese price gained 3.5 cents, closing at $1.7350 with two loads traded. The dry whey price increased 0.5 cent, closing at 50.25 cents with four loads traded. Class III futures are 6 to 39 cents higher. The butter price gained 1.50 cents and closing at $2.31 with seven loads traded. Grade A nonfat dry milk increased 0.50 cent, closing at $1.18 with a whopping 12 loads traded. Class IV futures have had limited trading currently unchanged. Butter futures are anywhere from down 0.50 cent to 2.25 cents higher as traders are not buying into the strength of the cash price. Dry whey futures have only traded a couple of contracts, currently up 0.65 cents on the May.

Fluid Milk and Cream - Western U.S. Report 15

Milk production in California is seasonally strong. However, handlers indicate milk production gains are ticking down week to week, and milk production has generally passed peak spring volumes. Central Valley manufacturers convey milk volumes remain well balanced with processing capacities and are meeting planned production needs. All Class demands are steady. According to the California Department of Water Resources, as of April 29, 2025, the state received 21.31 inches of precipitation for the current 2024-25 Water Year, which is 0.10 inch below the historical mean. 

In Arizona, farm level milk output varies from steady to lighter, as some handlers convey spring production peaks were reached and in the rearview mirror. Class I, II, III, and IV demands are steady. 

Milk production in New Mexico varies from steady to lighter as well. All Class manufacturing demands are unchanged. 

In the Pacific Northwest, milk production is steady. Manufacturers convey milk intakes to generally be in line with anticipated volumes for the last couple weeks of April. Milk volumes are meeting manufacturing needs. Demands for all Classes are steady. 

Farm level milk output in the mountain states of Idaho, Utah, and Colorado varies from steady to lighter. Handlers in Colorado indicate milk production is at or near the peak of spring output volumes. Colorado stakeholders note milk volumes are well balanced with processing capacities. Handlers in Idaho and Utah indicate milk production is at or past the peak of spring output volumes. Idaho and Utah stakeholders note milk volumes are meeting manufacturing needs. All Class demands are unchanged. 

Cream volumes are widely available. Cream multiples moved higher on the top end of both ranges. Cream demand is stronger. Condensed skim milk availability and demand remain in line with last week.

Thursday Morning Dairy Market Update - Limited Volatility and Trading Volume is Expected

OPENING CALLS:

Class III Milk Futures:	5 to 8 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures drifted higher in light trading activity. The block cheese price has increased for two consecutive days, but traders are cautious over how much further it will increase. Milk futures are expected to remain choppy. Milk production is increasing, with more milk moving to manufacturing. Increasing cheese production will keep a sufficient amount of cheese readily available to the market. The weather has been good for cow comfort, improving feed intakes. Milk production per cow is expected to remain above a year ago over the next few months.

CHEESE:

Cheese buyers step up when prices dip, but see no need to buy aggressively and chase the market higher. There needs to be an improvement in demand to turn traders bullish. Cheese inventory continues to run below a year ago, providing a positive aspect to the market, but supplies are increasing seasonally.

BUTTER:

Buyers took advantage of the lower butter price and stepped up during spot trading on Wednesday. At the close of spot trading on Wednesday, there were eight unfilled bids remaining, which may indicate further buying interest Thursday. The cream supply remains heavy, but there are indications that the supply is beginning to decrease.