Following a mixed bag of milk prices in July, the August Federal Milk Marketing Order (FMMO) Class and Component Prices report released Sept. 4 indicates milk prices declined for Classes II, III and IV, with Class IV showing the largest drop of 39 cents per hundredweight (cwt) due to butter and nonfat dry milk prices also coming down.
August 2025 FMMO pooling estimates, uniform prices and produce price differentials (PPDs) will be released Sept. 11-14. Watch Progressive Dairy’s website for an update.
August class prices
Class prices announced Sept. 4 were:
- At $19.18 per cwt, the Class II milk price decreased 13 cents from the previous month and was $2.87 per cwt less than August 2024.
- The August Class III milk price fell just 8 cents in August to $17.24 per cwt, but was a staggering $3.42 per cwt lower than the same month last year.
- At $18.50 per cwt, the Class IV milk price dropped 39 cents from the previous month and was $3.08 per cwt less than August 2024.
The gap between August 2025 Class III and Class IV milk prices was $1.26 with Class IV on top, giving some incentives for depooling of Class IV milk and potentially affecting FMMO pooling totals.
Butterfat, protein values
For the first time since February, butterfat prices fell in August due to a surplus of product despite a very strong export market. The month’s price was $2.73 per pound, down 11 cents from July and the same price that was seen in June. Milk protein regained some ground as August’s price rose 9 cents from the previous month to $1.96 per pound.
The August value of nonfat solids was unchanged from July at $1.03 per pound. Other solids were up 1 cent from July to August at 32 cents per pound.
Looking ahead
FMMO advanced prices and current futures prices are predicting a weaker month in September as markets continue to adjust to the strong supply of milk coming through the pipeline.
The September 2025 advanced Class I base price dropped 23 cents per cwt from August for a milk price of $18.70 per cwt. The September Class I base price reflects the monthly advanced Class IV milk pricing factor of $9.34 per cwt being the “higher-of” and used as the Class I mover in the milk pricing formula.
September 2025 Class II, III and IV will be announced Oct. 1. As of the end of trading Sept. 3, the Chicago Mercantile Exchange (CME) September Class III milk futures price closed at $17.80 per cwt, up from August’s settled price of $17.24 per cwt. The Class IV milk futures price settled at $17.05 per cwt for September, down from August’s settled price of $18.47 per cwt. If Class III-IV futures prices hold, the September Class III-IV price gap will be 75 cents per cwt, adding incentives for depooling of Class III.
