The new year will not be starting out strong for most dairy producers as they can anticipate weaker milk checks in January, based on a review of Federal Milk Marketing Order (FMMO) milk class prices. January’s FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released Feb. 11-14. Watch Progressive Dairy’s website for an update.
As previously announced, the January advanced Class I base price slumped to $16.35 per hundredweight (cwt). The base price is $1.86 per cwt lower than the base price for December 2025 and more than $4 per cwt less than January a year ago. At $16.35 per cwt, it’s the lowest Class I base price since April 2021.
Announced Feb. 4, January FMMO Class II, III and IV prices also declined from December.
January class prices
Other class prices announced Feb. 4 were:
- At $13.92 per cwt, the January Class II milk price is down 42 cents from the previous month and a staggering $7.66 per cwt less than January a year ago. The industry has not seen prices this low since November 2020.
- The January Class III milk price fell $1.27 from December 2025 to $14.59 per cwt. It’s $5.75 per cwt less than January 2025 and the lowest since June 2023.
- At $13.55 per cwt, the January Class IV milk price stumbled 9 cents from the month prior and $7.18 from the same month a year ago. This is the lowest Class IV milk price since February 2021.
The gap between January Class III and Class IV milk prices was $1.04 per cwt, continuing incentives for depooling of higher-priced Class III milk from some FMMO pools.
Butterfat, protein values fall
The values of butterfat and protein fell in January. Butterfat dropped 13 cents from the month prior to $1.45 per pound. That’s $1.50 less than the same month a year ago. Also, January’s price for protein was $2.17 per pound, settling 27 cents below December 2025’s price and 15 cents from January 2025.
The January value of nonfat solids was 94.3 cents per pound, up from December 2025’s 90.6 cents. Other solids also climbed to 44.5 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlook for February regional uniform milk prices is lower.
As announced previously, February’s advanced Class I base price hits a 68-month low at $14.70 per cwt. The price is $1.65 per cwt below January’s Class I base price and $6.57 per cwt less than the same month a year ago. It’s also the lowest Class I base price since June 2020.
February Class II, III and IV milk prices will be announced March 4.
As of trading Feb. 4, the Chicago Mercantile Exchange (CME) February Class III milk futures price settled at $15.45 per cwt, up 86 cents from January’s price. The February Class IV milk futures price closed at $15.40 per cwt, up $1.85 from January. If Class III-IV prices hold, the February Class III-IV milk price gap will be 5 cents per cwt, significantly reducing incentives for Class III depooling.
