# Cheese Drops Sharply, Pressuring Class III Futures as Grains and Feeders Rally - Dairy Herd

> Spot cheese blocks fell nearly five cents, pulling July and August Class III futures lower. December corn rallied about 16 cents and feeder cattle gained a couple of dollars after USDA said southern border port cattle yards would begin reopening. Soybeans and soybean meal also closed higher.

- Date: 2025-07-02 · published 2025-07-02T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/4520-cheese-drops-sharply-pressuring-class-iii-futures-as-grains-and-feeders-rally
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Weaker Class III milk values reduce dairy margins and can curb dairy feed demand. Firmer corn, soybeans and feeder cattle raise feed and livestock costs for buyers.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- CORN: bullish ▲
- MILK: bearish ▼
- FCATTLE: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2025-07-02 | 1 | -7.6% | -11.3 | Spot cheese blocks fell nearly five cents on the day, directly pulling July and August Class III futures lower, which is the most direct mechanism for the sharp one-day drop. |

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/milk-prices/cheese-drops-sharply-pressuring-class-iii-futures-grains-and-feeders-rally

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.