The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report was released June 11.
Milk production, prices
Milk production forecasts are raised for both 2026 and 2027. Based on the latest Milk Production report, cow inventories and milk output per cow are raised for both 2026 and 2027.
- At 236.4 billion pounds, the 2026 milk production estimate was raised from last month’s report and would be up 4.7 billion from 2025’s total of 231.7 billion pounds.
Cheese, nonfat dry milk (NDM) and whey prices for 2026 are lowered from the previous month’s forecast on recent price declines. The butter price is raised on stronger demand expected in the second half of the year. As a result, the Class III milk price forecast is lowered to $16.60 per hundredweight (cwt), and the Class IV price is also lowered to $19.35 cwt. The 2026 all-milk price is lowered 55 cents to $20.70 per cwt.
- In its forecast for 2027, the USDA estimated milk production at 237 billion pounds.
For 2027, the cheese price forecast is lowered, while whey prices are raised slightly. The price forecasts for NDM and butter are unchanged from the previous month. As a result, the Class III milk price forecast is unchanged as lower cheese prices are offset by higher whey prices at $17.55 per cwt, and the Class IV price forecast is also unchanged due to no changes in the butter or NDM price outlook at $18.60 cwt. The 2027 all-milk price forecast is lowered a nickel to $20.90 per cwt.
Beef outlook
For 2026, beef production is lowered, as the slow rate of steer and heifer slaughter is expected to continue through the second quarter and into the third quarter. Cow slaughter is also reduced for the remainder of the year. Heavier dressed weights partially offset the reductions in slaughter.
For 2027, beef production is raised, as increased feedlot placements and reduced marketings in 2026 will result in more fed cattle available for slaughter in 2027.
Fed cattle prices are raised for the second quarter of 2026 based on strong prices during the month of May but remain unchanged for the remainder of the year and into 2027. The 2025 average was forecast at $224.37 per cwt, while the 2026 average is now forecast at $250.16 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:
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Corn: This month’s WASDE 2026-27 U.S. corn outlook is virtually unchanged relative to last month.
- At $4.40 per bushel, the projected season-average corn price received by producers is unchanged from the previous report and up a quarter from the 2024-25 average of $4.15 per bushel.
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Soybeans: This month’s 2026-27 U.S. soybean supply, use and price projections are unchanged this month.
- The 2026-27 U.S. season-average soybean price forecast is unchanged at $11.40 per bushel, compared with $10.40 in 2025-26. The soybean meal price is also unchanged at $310 per short ton, and the soybean oil price was 70 cents per pound.
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Cottonseed: The forecast for the 2026-27 U.S. cotton balance sheet shows reduced beginning and ending stocks, due to a 200,000-bale decrease from the previous year.
- The 2025-26 season-average farm price forecast remains at 63 cents per pound reflecting recent strength in cotton futures. The projected season-average price for 2026-27 also remains at 73 cents per pound.
Alfalfa and other hay
The latest USDA Ag Prices report indicated dairy-quality alfalfa hay prices averaged $234 per ton in April, while alfalfa hay prices averaged $185 per ton, and prices for other hay averaged $133 per ton.
