After a disappointing start to the new year, the milk markets are starting to look better for February based on a review of Federal Milk Marketing Order (FMMO) milk class prices. February’s FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released March 9-14. Watch Progressive Dairy’s website for an update.
As previously announced, the February advanced Class I base price should cast a small shadow, dipping to just $14.70 per hundredweight (cwt). The February base price is $1.65 per cwt below the base price for January 2026 and $6.57 per cwt less than February a year ago. It’s the lowest Class I base milk price since June 2020.
Announced March 4, February FMMO Class II, III and IV prices went the other direction, with all classes improving from the previous month.
February class prices
Other class prices announced March 4 were:
- At $15.34 per cwt, the Class II price per cwt increased $1.42 from the previous month but remained $5.74 per cwt less than February 2025.
- The February Class III milk price climbed 35 cents from January to $14.94 per cwt. Although, it is $5.24 less than February a year ago.
- Class IV prices saw the greatest price improvement, up $2.74 from January to land at $16.29 per cwt. The price was down $3.61 per cwt from the same month last year.
The gap between February Class III and Class IV milk prices was $1.35 per cwt with incentives for depooling of higher-priced Class IV milk from some FMMO pools. February’s flip in the gap was propelled by nonfat dry milk prices – settling in the mid-$1.70s per pound for the month – dramatically lifting Class IV milk prices.
Butterfat, protein values fall
The values of butterfat and protein were mixed in February as butterfat prices rose but protein prices fell slightly. February’s butterfat price was $1.78 per pound, up 33 cents from the month prior yet $1.04 per pound below the price in February 2025. The price of protein fell 24 cents from January to $1.94 per pound and remained 59 cents less than the same month a year ago.
The February value of nonfat solids rose to $1.12 per pound, up 18 cents from January, and the price of other solids saw no change at 44 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlook for March regional uniform milk prices is better.
As announced previously, the FMMO advanced Class I base price will offer some reprieve to producers’ milk checks come March, rising 77 cents to reach $15.47 per cwt. While the higher price is welcomed, prices have not been this low since March 2021.
March Class II, III and IV milk prices will be announced April 1.
As of trading Feb. 3, the Chicago Mercantile Exchange (CME) March Class III milk futures price settled at $16.50 per cwt, up from February’s $14.91 per cwt. The March Class IV milk futures price closed at $19.51 per cwt, an upswing from February’s $16.10 per cwt. If Class III-IV prices hold, the March Class III-IV milk price gap will be $3.01 per cwt, adding incentives for Class IV depooling.
