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.

Based on latest USDA monthly Livestock Slaughter data, the number of dairy cull cows marketed through U.S. slaughter plants in January 2026 was estimated at 246,800.

Nineteen states including California, Texas and Kansas boosted milk production a combined 712 million pounds in January.

The February Feed Outlook report shows this month’s global coarse grains trade forecasts for both the 2024-25 and 2025-26 trade year are made on the observed pace of shipments and supply adjustments. The forecast for global sorghum trade is unchanged from last month.

With 315 filings, farm bankruptcies were up 46% from 2024. Declining farm receipts and rising expenses, primarily in crop markets, led to an increase in the number of U.S. farms filing for Chapter 12 bankruptcy in 2025.

USDA WASDE raised 2026 milk production and prices, increased beef output and fed cattle prices, and projected steady corn, soybean and cottonseed prices.

The new year will not be starting out strong for most dairy producers as they can anticipate weaker milk checks in January, based on a review of Federal Milk Marketing Order (FMMO) milk class prices.