Prices for U.S. replacement dairy cows dropped in January, falling back to levels similar to those seen in April 2025, according to latest quarterly estimates from the USDA. U.S. replacement dairy cow prices averaged $2,860 per head in January 2026, down $250 (9%) from October 2025 but up $200 (7%) from January 2025.

The March Feed Outlook report shows global coarse grains production is raised for 2025-26. Foreign 2025-26 coarse grains production forecast is raised slightly this month, with gains expected across barley, corn, oats and sorghum and small reductions expected for millet and rye. The largest increase is for corn production – particularly Ukraine.

The March World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is unchanged relative to last month. The season-average corn price received by producers is unchanged at $4.10 per bushel.

USDA’s March WASDE raised 2025 milk production to 231.7 billion pounds and forecasts 234.7 billion pounds for 2026. Dairy prices strengthen, beef prices rise and most feed prices remain steady.

After a disappointing start to the new year, the milk markets are starting to look better for February based on a review of Federal Milk Marketing Order (FMMO) milk class prices.

The USDA National Agricultural Statistics Service released its semiannual Cattle report on Jan. 30. The total of all cattle and calves on Jan. 1, 2026, was estimated at 86.155 million head, a year-over-year decline of 316,900 head, or 0.4%.

The USDA National Agricultural Statistics Service (NASS) Ag Prices report, released Feb. 27, established January’s Dairy Margin Coverage (DMC) program calculations. Factors contributing to the margin include a milk price $1.50 below December 2025’s price and feed costs 11 cents higher than that of the month prior.

Futures prices are rising with news of competitive international prices and strong U.S. dairy exports coupled with the government’s announcement of dairy product purchases, all making for a bullish outlook for U.S. dairy producers in March.

Things could not have ended better for dairy product exports than they did in 2025.

The February World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is for greater exports and lower ending stocks. Exports are raised 100 million bushels to 3.3 billion, reflecting sales and shipments to date.