The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report was released April 9.
Milk production, prices
Milk production for 2025 is revised on the latest data reported by NASS in the Milk Production report.
- At 231.7 billion pounds, the 2025 milk production estimate was unchanged from last month’s report and would be up 5.8 billion from 2024’s total of 225.9 billion pounds.
The milk production forecast for 2026 is raised from last month, as increases to the dairy cow inventory more than offset slower growth in milk output per cow.
- In its forecast for 2026, the USDA estimated milk production at 235.3 billion pounds, up 600 million pounds from a month earlier. If realized, 2026 production would be up about 1.5% from 2025.
Prices for cheese and nonfat dry milk (NDM) are raised for 2026 on recent price strength, strong domestic demand and improved price competitiveness for cheese on the international market. Butter prices are lowered on recent price declines, and whey prices are unchanged. Class III milk price forecast was raised to $16.90 per hundredweight (cwt) on higher cheese prices. The Class IV milk price was also raised to $18.60 per cwt on higher NDM prices offsetting lower butter prices. The 2026 all-milk price is raised 80 cents $20.50 per cwt.
Beef outlook
For 2026, beef production is reduced as lower steer and heifer slaughter in the first half of the year is partially offset by higher cow slaughter in the first two quarters and heavier dressed weights throughout the year. As these cattle are placed on feed in the first half of the year, they will likely be marketed and slaughtered in the second half.
Fed cattle prices are left unchanged with the exception of the first quarter, which was updated to reflect reported data through March. The 2025 average was forecast at $224.37 per cwt, while the 2026 average is now forecast at $242 per cwt, with highest prices in the fourth quarter of the year.
Feed supply, price forecasts
The USDA’s WASDE report provided potential insights into dairy feedstuff supplies and prices:
- Corn: This month’s WASDE 2025-26 U.S. corn outlook is unchanged relative to last month.
- At $4.15 per bushel, the projected season-average corn price received by producers is raised a nickel from the previous report and down 20 cents from the 2024-25 average of $4.35 per bushel.
- Soybeans: This month’s 2025-26 U.S. soybean supply and use projections include includes higher crush, lower exports and unchanged ending stocks.
- The 2025-26 U.S. season-average soybean price is projected at $10.30 per bushel, up a dime from last month. The soybean meal price was raised $10 to $310 per short ton, and the soybean oil prices was also raised 4 cents to 59 cents per pound.
- Cottonseed: This month’s 2025-26 U.S. cotton balance and prices are unchanged.
- The projected season-average farm price was raised a penny to 61 cents per pound, a decline of 2 cents from last year and 30 cents since 2021-22.
Alfalfa and other hay
The latest USDA Ag Prices report indicated dairy-quality alfalfa hay prices averaged $229 per ton in February, while alfalfa hay prices averaged $159 per ton and prices for other hay averaged $139 per ton.
