Milk Prices
Improved weather is supporting cow comfort and milk production as the industry reaches the midpoint of the first quarter of 2026.
Panic buying ahead of winter storms collided with surprisingly tight inventories to send butter prices on a late-January rollercoaster.
Enrollment for the 2026 Dairy Margin Coverage program opens Jan. 12 with expanded Tier 1 coverage, new production history rules and discounted multiyear premiums following improvements made under the One Big Beautiful Bill Act.
A new year hasn’t brought a reset for Class III milk, with persistent oversupply keeping the market under pressure.
The 2026 Zisk Report shows that dairy producers again expect a profitable year, but not all producers will share equally in that success.
Low costs, recent expansions, high beef prices and government programs are mitigating the impact of low milk prices
The dairy market has had a tough run for the majority of 2025. As we approach the new year, is there any hope for prices going forward? The USDA seems to believe that growth is yet to come.
The USDA released the long-awaited Milk Production Report Monday, releasing data from September 2025. Milk Production is up 4.2 percent from September 2024, and demand is not keeping up.
Through production is increasing, milk prices might be softening.
Dairy markets opened the week on a stronger note, with cheese and butter prices rebounding and Class III and IV futures gaining momentum.
Despite softer spot cheese prices, tight milk supplies and steady demand continue to underpin market strength.
Cheese prices climbed to their highest level in nearly two months, while Class III futures and butter prices moved lower.
Spot cheese prices pushed higher, lifting September Class III, while butter losses brought Class III and IV prices closer to parity.
After a strong start to the week, the spot cheese market slowed, but Class III futures continued to climb, supported by bullish sentiment in feeder cattle and a brief dip in corn below $4.00
CME spot cheese prices climbed to their highest levels since mid-June, fueled by record U.S. export demand, though futures markets remained cautious.
Spot cheese prices surged to their highest levels since June, fueling a sharp rally in Class III futures as traders look ahead to the upcoming June trade data report.
Cheese prices climbed above $1.70 for the first time in a month, lifting nearby Class III futures, while 2026 contracts slid to their lowest level since April.
Spot cheese remained steady in the $1.60s as Class III futures traded at a premium, with the August-September spread driving volume and signaling continued market positioning.
Rising cheese inventories pressured futures markets despite active spot trading, while butter prices and contracts continued to decline amid lackluster demand.
September Class III milk futures fell sharply despite heightened spot block trading activity, as broader dairy and grain markets showed mixed movement.
Butter futures surged Monday on a bullish Cold Storage report, lifting Class III prices despite volatile cheese markets and higher-than-expected inventories.
Butter prices rebounded on Friday following a bullish Cold Storage report, while cheese markets remained quiet with minimal spot activity and mixed Class III futures.
Aggressive selling hit Class III and butter futures following a bearish Milk Production report, as higher milk flows and weaker spot prices added pressure across the board.
U.S. milk production surged 3.3 percent in June, surpassing expectations and pressuring spot butter prices while 2025 futures climbed on strong export demand.
Butter and Class III futures softened while NDM attracted strong buying interest, setting the stage for potential market movement ahead of USDA’s June Milk Production report.
Despite recent declines in butter prices and mixed Class III futures, steady cheese volumes and strong seasonal demand suggest potential upside for dairy markets heading into late summer.
Cheese and powder markets show signs of strength, while butter continues to struggle heading into late summer.