USDA’s June WASDE raised 2026 milk production to 236.4 billion pounds on expectations of a larger cow herd and an increase in milk output per cow.

April was another record-breaking month for U.S. dairy product exports, with cheese setting a new monthly record, and butterfat, nonfat dry milk/skim milk powder (NDM/SMP) and low-protein whey all continuing their respective growth streaks.

The outlook for beef production in 2027 is forecast at 25.31 billion pounds, a 0.9% decline from 2026. A slight decline in production next year is based on fewer cattle slaughtered that is only partially offset by heavier anticipated carcass weights.

The May USDA Announcement of Class and Component Prices report is indicative of a milk market the U.S. dairy industry has not seen since 2020 as the gap between Class III and Class IV reached $5.40 per hundredweight (cwt), incentivizing depooling in Federal Milk Marketing Orders (FMMOs).

The price for all key feedstuffs used to calculate the margin rose in April, revealing an income over feed cost of $10.54 per hundredweight (cwt), more than $1 above the highest coverage selection in Tier I and comfortably positioning those enrolled in the program in the clear of indemnity payments.

Based on latest USDA monthly Livestock Slaughter data, the number of dairy cull cows marketed through U.S. slaughter plants in April 2026 was estimated at 215,100.

The May Feed Outlook report shows global coarse grains supply in 2026-27 is projected at 2,156 million metric tons (MT), 15 million MT lower than 2025-26. Spurring the projected supply decrease are expected declines in production, particularly in the U.S. but with notable declines in other major producing countries, including the European Union and Argentina.

Nineteen states including Kansas, California and Wisconsin boosted milk production a combined 574 million pounds in April.

The May World Agricultural Supply and Demand Estimates report (WASDE) showed the 2026-27 U.S. corn outlook is for reductions to supply, total use and ending stocks with higher expected prices. The corn crop is projected at 16 billion bushels, down 6% from a year ago on declines to both area and yield.

USDA’s May WASDE report raised 2026 milk production to 235.4 billion pounds on expectations of a larger cow herd but a slower growth rate in output per cow.