Dairy markets continue moving in the right direction as milk class prices improve substantially month over month as recorded in the latest Federal Milk Marketing Order (FMMO) milk class price report. March’s FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released April 11-14. Watch Progressive Dairy’s website for an update.
As previously announced, the March advanced Class I base price will offer some reprieve to producers’ milk checks, rising 77 cents to $15.47 per hundredweight (cwt). The higher price is welcomed but remains one of the lowest values since March 2021. This year’s Class I base price is $5.55 per cwt lower than March 2025.
Announced April 1, March FMMO Class II, III and IV prices climbed more than $1 from the previous month.
March class prices
Class prices announced April 1 were:
- At $17.34 per cwt, the Class II price per cwt increased $2 from February but remained $2.78 per cwt below the Class II price in March 2025.
- The March Class III price jumped $1.22 from February to $16.16 per cwt. It is $2.46 per cwt less than the price recorded the same month a year ago.
- Class IV prices rose the highest, up $2.65 per cwt from a month prior and were 73 cents above March 2025’s price.
The gap between March Class III and Class IV milk prices was $2.78 per cwt with incentives for depooling of the once again higher-priced Class IV milk from some FMMO pools. The gap continues to be influenced by nonfat dry milk prices, which have supported the rise in Class IV milk prices.
Butterfat, protein values positively shift
The values of butterfat and protein moved favorably in March, with butterfat prices reaching $2.02 per pound, up 24 cents from February, and protein prices settling at $2.10 per pound, up 16 cents from the previous month. In comparing the values to that of 2025, this year’s March butterfat price is 60 cents below that of the year prior. The price of protein is 36 cents lower.
The March value of nonfat solids rose 20 cents from February to $1.32 per pound. The price of other solids fell 2 cents to 42 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlook for April regional uniform milk prices seems to look up.
As announced previously, the FMMO advanced Class I base price was boosted in April. The price per cwt increased $3.19 from March for a price of $18.66 per cwt. For the first time all year, the price difference from 2025 was less than $1. The April Class I base price was only 91 cents below the price reported in the same month last year.
April Class II, III and IV milk prices will be announced April 29.
As of trading March 31, the Chicago Mercantile Exchange (CME) April Class III milk futures price landed at $17.35 per cwt, up $1.24 from the March price. April’s Class IV milk futures price settled at $20.60 per cwt, up $1.65. If Class III-IV prices remain, the April Class III-IV milk price gap will be $3.25 per cwt, adding a greater incentive for Class IV depooling.
