Prices continue to support the ample flow of milk in the U.S. as the global marketplace wants more. In March, not only were U.S. dairy product exports up 8% from the same month a year ago, but it was the highest milk solid equivalent volume in four years.

Prices for U.S. replacement dairy cows continued climbing into the first half of 2026, reaching a new record high in April, according to the latest quarterly estimates from the USDA.

Overall, the 2026 beef production forecast is lowered to 25.79 billion pounds, only 20 million pounds below last month’s projection. Compared to last month’s expectations, the pace of steer and heifer slaughter was slower in March.

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released April 30, established March’s Dairy Margin Coverage (DMC) program calculations. Both milk prices and feed costs rallied enough in March for the DMC program margin to climb out of the depths of indemnity payments.

The USDA’s Announcement of Class and Component Prices report for April confirmed the good news buzzing throughout the dairy industry, with prices rising in Class II, III and IV for the fourth straight month in 2026.

Based on the latest USDA monthly Livestock Slaughter data, the number of dairy cull cows marketed through U.S. slaughter plants in March 2026 was estimated at 239,200.

Milk prices are moving in favorable directions, with May Class IV futures closing at $22.29 per hundredweight (cwt) on April 24 and May Class III futures closing at $17.56 per cwt. But markets can quickly change. Add in the record prices dairy producers are receiving for cull cows and beef-on-dairy animals, and an established risk management plan becomes even more critical.

Twenty states including Kansas, Texas and Wisconsin boosted milk production a combined 535 million pounds in March.

The April Feed Outlook report shows global coarse grains production is raised for 2025-26. The foreign 2025-26 coarse grains supply forecast is raised slightly this month, driven primarily by an increased production forecast, with slight increases to beginning stocks and imports. 

The April World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is unchanged relative to last month. Feed and residual use is unchanged at 6.2 billion bushels reflecting reported disappearance during the December-February quarter as indicated in the March 31 Grain Stocks report.