After a nice run of Class III milk prices, July’s forecast price fell more than $1, reflective of a sharp drop in cheese prices from the growing processing capacity that is being met with a hardy supply. 

The Federal Milk Marketing Order (FMMO) advanced Class I base price rose 11 cents per hundredweight (cwt) from July to August for a Class I base price of $18.93 per cwt.

The milk production forecasts for both 2025 and 2026 are raised from last month based on higher cow inventories and an increased rate of growth in milk output per cow based on the latest information published in the National Agricultural Statistics Service (NASS) Milk Production report.

Following the implementation of Federal Milk Marketing Order (FMMO) revisions, the prices per hundredweight (cwt) of milk sold into the Class III and Class IV markets are expected to rise in June.

May’s margin was $10.41 per hundredweight (cwt), only a 1 cent decline from April’s margin and the result of movements in the all-milk price and feed costs that largely offset each other.

The milk production forecasts for both 2025 and 2026 based on the latest Milk Production report as cow inventories are raised from 2025 and milk per cow is raised for both 2025 and 2026.

Class III and Class IV milk prices are expected to strengthen in May following months of depressed prices based on a preview of Federal Milk Marketing Order (FMMO) milk class prices.

April’s margin was $10.42 per hundredweight (cwt) after feed costs were stronger than expected and the milk price fell again, pushing the margin down from March and resulting in the year’s lowest margin yet.