Thursday Midday Dairy Market Summary - Traders Focus On Strength

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	6 Lower
SOYBEAN MEAL:	$1.70 Lower
LIVE CATTLE:	$2.80 Higher
DOW JONES:	399 Points Lower
NASDAQ:	12 Points Lower
CRUDE OIL:	$1.96 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased a penny, closing at $1.8350 with three loads traded. The price initially declined 2 cents before buyers became aggressive and sellers held out for higher prices. Similar to Wednesday, there were four unfilled bids and no uncovered offers remaining at the close. The barrel cheese price decreased by 3.50 cents, closing at $1.84 with seven loads traded. The price initially traded 4.50 cents lower before regaining some of the loss. There were two uncovered offers remaining at the close. The dry whey price increased 0.75 cent, closing at 48.25 cents with four loads traded. Class III futures are 2 to 37 cents higher, nearly regaining the losses of Wednesday. The butter price increased 0.25 cent, closing at $2.3425 with 11 loads traded. One unfilled bid and three uncovered offers remained at the close of spot trading. Grade A nonfat dry milk increased 0.50 cent, closing at $1.1725 with 3 loads traded. Class IV futures are 3-21 cents higher with trading confined to 2026 contracts with substantial volume. Butter futures are 1.27 cents lower to 0.42 cent higher. Dry whey futures are 0.32 to 1.30 cents higher. The markets will be closed on Good Friday.

Fluid Milk and Cream - Western U.S. Report 13

Milk production in California is strong. Some handlers report a sentiment of being firmly in the peak of spring milk output. Central Valley manufacturers convey milk volumes are more balanced with production capacities heading into the holiday weekend, but spot milk loads are available. Class I, III, and IV demands are steady. Class II demand is stronger as ice cream production is noted as picking up. According to the California Department of Water Resources, as of April 15, 2025, total precipitation is up 0.30 inch from the historical mean for the current water year. According to the California Department of Water Resources, as of April 16, 2025, the estimated total statewide reservoir storage was 31.80 million acre feet, which is 118 percent of the historical average. 

In Arizona, farm level milk output is strong. Manufacturers indicate milk intakes are meeting the needs of production plans. Demand for Class I is lighter with many educational institutions having either spring recess or a break for the holiday weekend. Class II, III, and IV demands are steady. 

Milk production in New Mexico is seasonally stronger. Demands for all Classes are steady. 

For the Pacific Northwest, handlers convey milder than typical weather is contributing to stronger milk production. Manufacturers note milk intakes are above anticipated volumes as well. Demand for Class I remains lighter. All other Class demands are steady. 

Farm level milk output in the mountain states of Idaho, Utah, and Colorado, varies from steady to stronger. Manufacturers generally indicate plenty of milk is around and spot milk loads can be had for buyers looking to secure them. That said, Idaho/Utah stakeholders also don't describe spot milk demand as robust. Class II demand is stronger, particularly from ice cream manufacturers. All other Class demands are unchanged. 

Cream remains steadily available. Demand varies from somewhat lighter to somewhat stronger. Cream multiples moved lower on the bottom end of both ranges. Condensed skim milk is widely available. Demand is mixed.

Thursday Morning Dairy Market Update - Mixed Trading Activity Ahead of Holiday Weekend

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

The activity in spot cheese trading on Wednesday was mixed, but traders focused on the weakness of barrel cheese rather than the strength of block cheese. They had been anticipating weakness, and once it took place, they were quick to sell. Overnight trading activity was light with prices mixed. There is little outside news for traders to focus on. The activity during spot trading will provide some volatility, but not a long-term price direction. Traders expect a further retracement of cash prices, keeping them somewhat bearish. Thursday is the last trading day for the week, with the markets closed on Good Friday.

CHEESE:

Cheese prices have had a nice run higher, but may have difficulty seeing further upside potential unless cash prices hold and increase. Cheese production is increasing as more milk finds its way to manufacturing. This provides sufficient supply for demand, with some moving to inventory.

BUTTER:

Butter production remains strong as plants utilize the available cream supply. Some cream loads are expected to back up over the Easter weekend as production schedules will be reduced. This will not overwhelm the market as churns have been active and keeping up with supply. However, inventory remains above a year ago and continues to increase.