The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report was released June 12.
Milk production, prices
The milk production forecasts are raised for both 2025 and 2026. Based on the latest information published in the National Agricultural Statistics Service (NASS) Milk Production report, cow inventories are raised from 2025, and milk per cow is raised for both 2025 and 2026. Estimated at 227.8 billion pounds, it was raised 500 million pounds from last month’s report.
Cheese, butter, nonfat dry milk (NDM) and whey prices for 2025 are all raised from last month based on recent price strength. The Class III milk price forecast is lowered to $18.65 per hundredweight (cwt), and the Class IV price is raised to $18.85 cwt. The 2025 all-milk price is raised 35 cents to $21.95 per cwt.
Milk production in 2026 is forecast to increase from 2025, driven by an expanding milk cow herd and slightly higher milk per cow. Estimated milk production is at 228.2 billion pounds.
For 2026, butter, cheese and whey price forecasts are raised as strong demand is expected to absorb the growth in milk production, while NDM prices are unchanged from the previous month. As a result, the Class III milk price forecast is $17.80 per cwt, and the Class IV price is $18.20 cwt. The 2026 all-milk price is forecast to be $21.30 per cwt.
Beef outlook
For 2025, the beef production forecast lowered on reduced steer and heifer slaughter in the second quarter and reduced cow slaughter for the remainder of the year. However, for 2026 beef production is raised primarily on higher feedlot placements in the second half of 2025 and early 2026, which are expected to result in higher steer and heifer slaughter for 2026.
Fed cattle price forecasts are raised on recent price strength and continued demand for cattle. The increased price forecasts are carried over into 2026 as well. The 2025 average is now forecast at $221.51 per cwt, with highest prices in the fourth quarter of the year.
Feed supply, price forecasts
The USDA’s WASDE report provided potential insights into dairy feedstuff supplies and prices:
- Corn: This month’s WASDE 2025-26 U.S. corn outlook was little changed from last month, with lower beginning and ending stocks. Corn area and yield forecasts are unchanged. The USDA will release its Acreage report on June 30, which will provide survey-based indications of planted and harvested area.
At $4.20 per bushel, the projected season-average corn price received by producers is down 15 cents from the 2024-25 average of $4.35 per bushel.
- Soybeans: This month’s 2025-26 U.S. soybean supply, use and price projections are unchanged from last month.
The 2025-26 U.S. season-average soybean price is forecast at $10.25 per bushel, up 35 cents from the average price of $9.95 per bushel in 2024-25. Projected soybean meal prices were unchanged at $310 per short ton, up about $10 from the 2024-25 average of $300 per ton and $75 less than the 2023-24 average of $385 per ton.
- Cottonseed: As a predictor of cottonseed availability, cotton production is projected to be 14 million 480-pound bales.
The forecast for 2025-26 U.S. cotton lower production, beginning and ending stocks, with consumption, imports and exports are unchanged from last month. Harvested area is lowered 2% to 8.19 million acres following extensive rainfall and delayed planting in the Delta. The national average yield for 2025-26 is reduced more than 1% from last month to 820 pounds per harvested acre, also because of the conditions in the Delta. As a result, the production forecast is reduced 500,000 bales to 14 million, below the 14.4 million bales produced in 2024-25 and the second-smallest crop in the past decade. The projected season-average price for 2025-26 is 62 cents per pound.
Alfalfa and other hay
The latest USDA Ag Prices report indicated dairy-quality alfalfa hay prices averaged $252 per ton in April, while alfalfa hay prices averaged $180 per ton, and prices for other hay averaged $138 per ton.
