Most dairy producers should anticipate smaller milk checks again this month, based on a review of Federal Milk Marketing Order (FMMO) milk class prices. December 2025 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released Jan. 11-14. Watch Progressive Dairy’s website for an update.
As announced previously, the December 2025 advanced Class I base price rebounded to $18.21 per hundredweight (cwt), up $1.46 from November. Despite the month-to-month increase, the December 2025 Class I base price was $3.22 per cwt less than December 2024 and the lowest for December since 2018.
Announced Dec. 31, December FMMO Class II, III and IV prices all declined from November, offsetting the Class I price gain.
December class prices
Other class prices announced on Dec. 31 were:
- At $14.41 per cwt, the December Class II milk price is down 13 cents from November and down $6.87 from December a year ago. It’s the lowest since February 2021.
- The December Class III milk price fell $1.32 from the previous month to $15.86 per cwt. It’s $2.76 per cwt less than December 2024 and the lowest since April 2024.
- At $13.64 per cwt, the December Class IV milk price is down 25 cents from November and down $7.10 from same month a year ago.
The gap between December 2025 Class III and Class IV milk prices was $2.22 per cwt, continuing incentives for depooling of higher-priced Class III milk from some FMMO pools.
Butterfat, protein values dip
The values of butterfat and protein both declined in December. Butterfat fell to about $1.58 per pound, down 13 cents from November and $1.33 less than the value of $2.91 per pound one year ago. Meanwhile, the value of milk protein settled at about $2.45 per pound in December, falling almost 56 cents from November.
The December value of nonfat solids was 90.6 cents per pound, down slightly from November. Other solids inched higher to 43.5 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlook for January regional uniform milk prices is also lower.
As announced previously, the January 2026 advanced Class I base price is $16.35 per cwt, $1.86 per cwt below the base price for December 2025 and $4.03 per cwt less than January 2025. It’s the lowest Class I base milk price since April 2021. With regional differentials, Class I prices will average about $20.47 per cwt.
January 2026 Class II, III and IV milk prices will be announced on Feb. 4.
As of trading on Dec. 30, the Chicago Mercantile Exchange (CME) January Class III milk futures price settled at $15.42 per cwt, down 44 cents per cwt from December’s price. The January Class IV milk futures price closed at $13.77 per cwt, up 13 cents from December. If Class III-IV futures prices hold, the January Class III-IV milk price gap will shrink to $1.65 per cwt, reducing but not eliminating incentives for Class III depooling.
