Most dairy producers’ February milk checks will be lower than a month before, based on a preview of Federal Milk Marketing Order (FMMO) milk class prices. Announced on March 5, February 2025 FMMO Class II, Class III and Class IV milk prices were all down from January. That will be offset by a small gain in the advanced Class I milk price, announced previously.
February 2025 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released on March 11-14 and summarized by March 17. Watch Progressive Dairy’s website for an update.
February class prices
Class prices announced on March 5 were:
- At $21.08 per hundredweight (cwt), the February Class II milk price is down 50 cents from January but still 55 cents more than January 2024.
- The February Class III milk price dipped 16 cents from January to $20.18 per cwt. It’s up $4.10 from February 2024.
- At $19.90 per cwt, the February 2025 Class IV milk price is down 83 cents from January to a 12-month low and just a nickel more than February 2024.
Potentially affecting FMMO pooling, the gap between February 2025 Class III and Class IV milk prices fell to just 28 cents per cwt – this month with Class III on top – the slimmest spread since March 2023 and cutting into incentives for depooling milk.
February FMMO blend prices in some regional FMMOs will be aided by a higher advanced Class I base price, previously announced at $21.27 per cwt, up 89 cents from January.
Butterfat, protein values mixed
Pressuring February milk class prices, the value of butterfat fell about 13 cents per pound from January to just under $2.82 per pound, the lowest since July 2023.
Meanwhile, the value of milk protein rose more than 20 cents per pound from January to about $2.53 per pound, a four-month high.
Compared to January, the February value of nonfat solids was down about 4.5 cents at $1.55 per pound, while the value of other solids dipped about 6 cents, to 48 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlooks for March regional uniform milk prices are forecast lower.
Already announced, the March 2025 advanced Class I base price is $21.02 per cwt, down 25 cents from February.
March 2025 Class II, III and IV milk prices will be announced on April 2. Both Class III and Class IV milk futures prices have been declining, based in part to concerns over export tariffs.
As of trading on March 5, the Chicago Mercantile Exchange (CME) March Class III milk futures price closed at $18.25 per cwt, down $1.93 from the February price.
Additionally, the March Class IV milk futures price closed at $18.71 per cwt, which would be down $1.19 from February.
If Class III-IV futures prices hold, the March Class III-IV milk price gap will increase to 46 cents per cwt, adding some incentives for Class IV depooling.
