by Andrew P. Griffith, Livestock Marketing Specialist
July 31, 2026
Milk Production
Milk production in the 24 major states during June totaled 18.9 billion pounds, up 2.4 percent from June 2025. Production per cow for June averaged 2,051 pounds. The number of milk cows was 9.23 million head, 18,000 more than May 2026. May production was revised down 0.2 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 0.2% from June a year ago; Wisconsin up 1.6%; Texas up 4.9%; Idaho up 2.2%; and New York up 1.6%. Other states with large production increases were Kansas (16.7%), Oregon (8.1%), and Georgia (5.8%). States with production decreases were Virginia (-0.9%) and Washington (-0.4%).
Milk Price and Utilization
The Southeast Uniform milk price for June was $26.48, up $2.17 from May and $4.30 higher than June 2025. The Appalachian Uniform milk price was $26.05 up $2.03 from May and $4.11 higher than June 2025. June’s Class III price was $15.98, down $0.94 from May, and $2.84 lower than June a year ago. The Class IV price was down $1.36 at $20.96, and $2.66 higher than June 2025. The Class I Mover price for August is $18.76, down $2.57 from July. The milk/feed ratio for June was 2.23, up 0.02 from May.
Southeast Class I utilization was 73.61%, up 6.03% from May and 7.38% higher than June a year ago. The Uniform butterfat price was $1.7298 down 6.28 cents from last month and 86.07 cents lower than June 2025. The June Class I price was $27.98. July Class I price is $27.13. Appalachian Class I utilization was 72.13%, up 4.78% from May, and 4.31% higher than June a year ago. The Uniform butterfat price was $1.7299, down 6.15 cents from last month and 86.28 cents lower than June 2025. The June Class I price was $27.78.
Cheese Production and Stocks
Total cheese production in May was 1.28 billion pounds, up 2.0% from a year ago while butter production was up 3.5% to 224 million pounds. Nonfat dry milk (NDM) production was up 10.3% compared to a year ago with total production at 173 million pounds while skim milk powder (SMP) production was down 39.7% to 29.4 million pounds compared to a year ago. Total cheese stocks at the end of June were down 1% from June a year ago and up 1% from the previous month while butter stocks were down 1% from last month and down 7% from a year ago.
Cow Slaughter
Dairy cow slaughter in June was 208,100 head, up 16,400 head from May and 19,300 head more than June 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. |
|---|---|---|---|---|---|---|
| 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 |
| Jun 26 | 26.48 | 27.98 | 15.98 | 20.96 | 73.61 | 1.7298 |
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. |
|---|---|---|---|---|---|---|
| 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 |
| Jun 26 | 26.05 | 27.78 | 15.98 | 20.96 | 72.13 | 1.7299 |
What is the Market Offering for Milk to be Sold in October?
Ex: It is Jul. 31 and Oct. Class III milk futures are trading at $17.67. Local Oct. basis estimate is +$3.00.
| If October futures | = | 19.25 | 17.75 | 16.25 | |||
| and actual blend price | = | 22.25 | 20.75 | 19.25 | |||
| Sample Strategies | Realized Prices for October Milk | ||||||
| 1) Sold Futures | @ | 17.67 | 20.67 | 20.67 | 20.67 | ||
| 2) Bought Put | 16.75 | @ | 0.39 | 21.86 | 20.36 | 19.36 | |
| 3) Bought Put | 17.25 | @ | 0.59 | 21.66 | 20.16 | 19.66 | |
| 4) Bought Put | 17.75 | @ | 0.84 | 21.41 | 19.91 | 19.91 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 17.67 | |||||
| Bought Call | 18.75 | @ | 0.41 | 20.76 | 20.26 | 20.26 | |