While the market for Class IV milk is still strong, the markets are signaling a retreat is near. The June USDA Announcement of Class and Component Prices report indicated the Class IV milk price falling more than $2 from the month prior, and while the Class III price also fell, the gap between the two is closing as the markets search for balance.

The June Feed Outlook report shows global coarse grains production is raised for 2025-26 and 2026-27. This month’s outlook is for increased global coarse grains, with marketing year 2025-26 raised 15.5 million metric tons (MT) and 2026-27 raised 5.8 million MT.

The USDA National Agricultural Statistics Service (NASS) Agricultural Prices report, released June 29, established May’s Dairy Margin Coverage (DMC) program calculations. As the all-milk price rose 50 cents, the total feed costs rose 42 cents, boosting the DMC margin 8 cents to $10.62 per hundredweight (cwt) for the month.

The USDA confirmed the discovery of New World screwworm (NWS) in a calf in Texas on June 3, 2026. Subsequently, additional cases have been identified in livestock and pets within the U.S. In response to these NWS cases, the USDA and local state officials have implemented actions to contain and monitor the movement of the pest, including quarantines and movement controls of livestock in affected areas.

Based on the latest USDA monthly Livestock Slaughter data, the number of dairy cull cows marketed through U.S. slaughter plants in May 2026 was estimated at 191,700.

Nineteen states including Kansas, Wisconsin and Texas boosted milk production a combined 494 million pounds in May.

The June World Agricultural Supply and Demand Estimates report (WASDE) showed the 2026-27 U.S. corn outlook is virtually unchanged relative to last month. Fractionally higher beginning and ending stocks for 2026-27 reflect mostly offsetting trade and domestic use changes for 2025-26 with adjustments to imports, corn used for ethanol and exports based on data to date.

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.