Following the implementation of Federal Milk Marketing Order (FMMO) revisions, the prices per hundredweight (cwt) of milk sold into the Class III and Class IV markets are expected to rise in June. On the contrary, Class II is forecast to fall as June 2025 FMMO Class II, Class III and Class IV milk prices were announced July 2. Class I fell $1.11 per cwt to $17.26 per cwt, as announced previously.
June 2025 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released July 11-14. Watch Progressive Dairy’s website for an update.
June class prices
Class prices announced July 2 were:
- At $18.43 per cwt in June, the Class II milk price decreased 29 cents from the previous month and was down $3.17 per cwt from June 2024.
- The June Class III milk price improved 25 cents per cwt from May to $18.82 per cwt. Yet, it’s down $1.05 per cwt from the same month last year.
- At $18.30 per cwt, the Class IV milk price rose 17 cents from the previous month but fell $2.78 per cwt from June 2024.
The gap between June 2025 Class III and Class IV milk prices was 52 cents with Class III on top, giving some incentives for depooling of Class III milk and potentially affecting FMMO pooling.
Butterfat, protein values
The value of butterfat rose again with a price of $2.74 per pound, up 8 cents from May. Milk protein increased 5 cents from May to June for a price of $2.53 per pound, the same price recorded in February.
Compared to May, the June value of nonfat solids was $1 per pound, down 3 cents. Other solids were also down from the previous month, settling at 29 cents per pound in June, down 3 cents from May.
Looking ahead
Based on FMMO advanced price and current futures prices, overall the outlooks for July are showing favorable conditions as markets strengthen in the third and fourth quarter of 2025.
The July 2025 advanced Class I base price rebounded $1.56 per cwt from June to $18.82 per cwt. The price is reflective of the monthly advanced Class III milk pricing factor of $9.66 being the “higher-of” and used as the Class I mover in the milk pricing formula.
July 2025 Class II, III and IV prices will be announced July 30. As of end of trading July 1, the Chicago Mercantile Exchange (CME) July Class III milk futures price closed at $17.55 per cwt, down $1.20 from June. And the July Class IV milk futures price settled at $18.89 per cwt, up 52 cents from June’s price. If Class III-IV futures prices hold, the July Class III-IV milk price gap will be $1.34, adding incentives for Class III depooling.
