by Andrew P. Griffith, Livestock Marketing Specialist
June 30, 2026
Milk Production
Milk production in the 24 major states during May totaled 19.8 billion pounds, up 2.4 percent from May 2025. Production per cow for May averaged 2,143 pounds. The number of milk cows was 9.23 million head, 7,000 more than April 2026. April production was revised down 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 1.2% from May a year ago; Wisconsin up 2.3%; Texas up 4.0%; Idaho up 2.9%; and New York up 1.8%. Other states with large production increases were Kansas (21.2%), Oregon (7.1%), and Florida (4.8%). States with large production decreases were Pennsylvania (-1.9%) and Vermont (-0.9%).
Milk Price and Utilization
The Southeast Uniform milk price for May was $24.31, up $1.37 from April and $2.95 higher than May 2025. The Appalachian Uniform milk price was $24.02 up $1.16 from April and $3.04 higher than May 2025. May’s Class III price was $16.92, up $0.10 from April, and $1.65 lower than May a year ago. The Class IV price was up $2.10 at $22.32, and $4.19 higher than May 2025. The Class I Mover price for July is $21.33, down $0.85 from June. The milk/feed ratio for May was 2.21, down 0.05 from April.
Southeast Class I utilization was 67.58%, down 2.95% from April and 0.99% lower than May a year ago. The Uniform butterfat price was $1.7926 down 16.55 cents from last month and 87.84 cents lower than May 2025. The May Class I price was $25.95. June Class I price is $27.98. Appalachian Class I utilization was 67.35%, down 6.60% from April, and 3.44% lower than May a year ago. The Uniform butterfat price was $1.7914, down 16.82 cents from last month and 88.04 cents lower than May 2025. The May Class I price was $25.75.
Cheese Production and Stocks
Total cheese production in April was 1.27 billion pounds, up 1.7% from a year ago while butter production was up 4.5% to 224 million pounds. Nonfat dry milk (NDM) production was up 11.4% compared to a year ago with total production at 181 million pounds while skim milk powder (SMP) production was up 0.2% to 35.5 million pounds compared to a year ago. Total cheese stocks at the end of May were down 1% from May a year ago and up 1% from the previous month while butter stocks were up 9% from last month and down 8% from a year ago.
Cow Slaughter
Dairy cow slaughter in May was 191,700 head, down 23,400 head from April and 5,100 head less than May 2025.
Southeast Federal Order Prices
| Month | Uniform Price $/cwt. | Class I Price $/cwt. | Class III Price $/cwt. | Class IV Price $/cwt. | Class I % Utilization | Butterfat Price $/lb. |
|---|---|---|---|---|---|---|
| Dec 25 | 21.89 | 24.01 | 15.86 | 13.64 | 75.94 | 1.6532 |
| Jan 26 | 20.79 | 22.15 | 14.59 | 13.55 | 82.14 | 1.5434 |
| Feb 26 | 20.14 | 20.50 | 14.94 | 16.29 | 76.13 | 1.6581 |
| Mar 26 | 20.95 | 21.27 | 16.16 | 18.94 | 72.15 | 1.8993 |
| Apr 26 | 22.94 | 24.46 | 16.82 | 20.22 | 70.53 | 1.9581 |
| May 26 | 24.31 | 25.95 | 16.92 | 22.32 | 67.58 | 1.7926 |
Appalachian Federal Order Prices
| Month | Uniform Price $/cwt. | Class I Price $/cwt. | Class III Price $/cwt. | Class IV Price $/cwt. | Class I % Utilization | Butterfat Price $/lb. |
|---|---|---|---|---|---|---|
| Dec 25 | 21.80 | 23.81 | 15.86 | 13.64 | 76.14 | 1.6540 |
| Jan 26 | 20.32 | 21.95 | 14.59 | 13.55 | 78.06 | 1.5390 |
| Feb 26 | 19.69 | 20.30 | 14.94 | 16.29 | 73.73 | 1.6660 |
| Mar 26 | 20.64 | 21.07 | 16.16 | 18.94 | 70.09 | 1.9116 |
| Apr 26 | 22.86 | 24.26 | 16.82 | 20.22 | 73.95 | 1.9596 |
| May 26 | 24.02 | 25.75 | 16.92 | 22.32 | 67.35 | 1.7914 |
What is the Market Offering for Milk to be Sold in September?
Ex: It is Jun. 30 and Sep. Class III milk futures are trading at $16.73. Local Sep. basis estimate is +$3.00.
| If September futures | = | 18.25 | 16.75 | 15.25 | |||
| and actual blend price | = | 21.25 | 19.75 | 18.25 | |||
| Sample Strategies | Realized Prices for September Milk | ||||||
| 1) Sold Futures | @ | 16.73 | 19.73 | 19.73 | 19.73 | ||
| 2) Bought Put | 15.75 | @ | 0.26 | 20.99 | 19.49 | 18.49 | |
| 3) Bought Put | 16.25 | @ | 0.44 | 20.81 | 19.31 | 18.81 | |
| 4) Bought Put | 16.75 | @ | 0.64 | 20.61 | 19.11 | 19.11 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 16.73 | |||||
| Bought Call | 17.75 | @ | 0.37 | 19.86 | 19.36 | 19.36 | |