Following the announcement of the federal government shutdown, Federal Milk Marketing Orders (FMMOs) released their individual reports on September FMMO Class and Component Prices Oct. 1. The reports indicated another month of sinking prices in Class II and Class IV with the latter taking the biggest hit, down $2.33 per hundredweight (cwt) from August at $16.17 per cwt.
September 2025 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) are set to be released Oct. 11-14. Watch Progressive Dairy’s website for an update.
September class prices
Class prices announced Oct. 1 were:
- At $17.39 per cwt, Class II milk price declined $1.79 from the previous month and a stark $5.01 per cwt from September 2024.
- The September Class III milk price rose 35 cents month over month to $17.59 per cwt. Yet, the price was $5.75 per cwt less than the same month a year ago.
- At $16.17 per cwt, the Class IV milk price saw the largest dip, down $2.33 per cwt from August and a stunning $6.12 per cwt from September 2024.
The gap between September 2025 Class III and Class IV milk prices was $1.42 with Class III now on top, giving some incentives for depooling of Class III milk and potentially affecting FMMO totals.
Butterfat, protein values
Butterfat prices once again fell in September due to a surplus of product. The month’s price was $2.19 per pound, down 54 cents from August. Milk protein remained relatively unchanged at $2.71 per pound, falling just 2 cents from the previous month.
The September value of nonfat solids was also down a nickel to 98 cents per pound from August’s $1.03 per pound. Other solids remained unchanged at 32 cents per pound.
Looking ahead
FMMO advanced prices and current futures prices are forecasting yet another lackluster month in October. The October 2025 advanced Class I base price fell 66 cents from September for a milk price of $18.04 per cwt. October’s base price is reflective of the monthly advanced Class III milk pricing factor ($10.03 per cwt) being the “higher-of” and used as the Class I mover in the milk pricing formula.
October 2025 Class II, III and IV should be announced Nov. 5, pending the government shutdown is resolved. As of the end of trading Sept. 30, the Chicago Mercantile Exchange (CME) October Class III milk futures price closed at $17.22 per cwt. The Class IV milk futures price settled at $14.89 per cwt. If the Class III-IV futures prices hold, the Class III-IV price gap will be $2.33, further adding incentives depooling of Class III.
