by Andrew P. Griffith, Livestock Marketing Specialist
June 30, 2025
Milk Production
Milk production in the 24 major states during May totaled 19.1 billion pounds, up 1.7 percent from May 2024. Production per cow for May averaged 2,125 pounds. The number of milk cows was 9.00 million head, 6,000 more than April 2025. April production was revised up 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 1.8% from May a year ago; Wisconsin down 0.1%; Texas up 8.9%; Idaho up 6.0%; and New York up 1.3%. Other states with large production increases were Kansas (15.7%), South Dakota (9.5%), and Georgia (7.9%). States with large production decreases were Illinois (-4.0 %) and Washington (-3.3%).
Milk Price and Utilization
The Southeast Uniform milk price for May was $21.36, down $0.93 from April and $0.72 lower than May 2024. The Appalachian Uniform milk price was $20.98 down $0.74 from April and $0.79 lower than May 2024. May’s Class III price was $18.57, up $1.09 from April, and $0.02 higher than May a year ago. The Class IV price was up $0.21 at $18.13, and $2.37 lower than May 2024. The Class I Mover price for July is $18.82, up $1.56 from June. The milk/feed ratio for May was 2.24, down 0.03 from April.
Southeast Class I utilization was 68.57%, down 2.35% from April and 2.37% higher than May a year ago. The Uniform butterfat price was $2.6710, up 1.98 cents from last month and 73.51 cents lower than May 2024. The May Class I price was $22.17. June Class I price is $23.06. Appalachian Class I utilization was 70.79%, up 4.28% from April, and 0.25% higher than May a year ago. The Uniform butterfat price was $2.6718, up 2.04 cents from last month and 73.75 cents lower than May 2024. The May Class I price was $21.77.
Cheese Production and Stocks
Total cheese production in April was 1.23 billion pounds, up 3.1% from a year ago while butter production was up 3.9% to 216 million pounds. Nonfat dry milk (NDM) production was down 6.1% compared to a year ago with total production at 163 million pounds while skim milk powder (SMP) production was down 20.8% to 35.5 million pounds compared to a year ago. Total cheese stocks at the end of May were down 2% from April a year ago and up 1% from the previous month while butter stocks were up 7% from last month and down 5% from a year ago.
Cow Slaughter
Dairy cow slaughter in May was 196,700 head, down 10,500 head from April and 19,300 head less than May 2024.
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 24 | 24.18 | 25.23 | 18.62 | 20.74 | 77.59 | 3.0125 |
| Jan 25 | 23.79 | 24.18 | 20.34 | 20.73 | 79.73 | 2.9557 |
| Feb 25 | 23.90 | 25.07 | 20.18 | 19.90 | 69.65 | 2.8846 |
| Mar 25 | 23.18 | 24.82 | 18.62 | 18.21 | 68.73 | 2.7289 |
| Apr 25 | 22.29 | 23.37 | 17.48 | 17.92 | 70.92 | 2.6512 |
| May 25 | 21.36 | 22.17 | 18.57 | 18.13 | 68.57 | 2.6710 |
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 24 | 23.43 | 24.83 | 18.62 | 20.74 | 68.89 | 3.0003 |
| Jan 25 | 23.26 | 23.78 | 20.34 | 20.73 | 76.15 | 2.9557 |
| Feb 25 | 23.55 | 24.67 | 20.18 | 19.90 | 72.89 | 2.8855 |
| Mar 25 | 22.60 | 24.42 | 18.62 | 18.21 | 66.42 | 2.7210 |
| Apr 25 | 21.72 | 22.97 | 17.48 | 17.92 | 66.51 | 2.6514 |
| May 25 | 20.98 | 21.77 | 18.57 | 18.13 | 70.79 | 2.6718 |
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 $19.42. Local Aug. basis estimate is +$3.00.
| If September futures | = | 20.75 | 19.25 | 17.75 | |||
| and actual blend price | = | 23.75 | 22.25 | 20.75 | |||
| Sample Strategies | Realized Prices for September Milk | ||||||
| 1) Sold Futures | @ | 19.17 | 22.17 | 22.17 | 22.17 | ||
| 2) Bought Put | 18.25 | @ | 0.47 | 23.28 | 21.78 | 20.78 | |
| 3) Bought Put | 18.75 | @ | 0.67 | 23.08 | 21.58 | 21.08 | |
| 4) Bought Put | 19.25 | @ | 0.92 | 22.83 | 21.33 | 21.33 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 19.17 | |||||
| Bought Call | 20.25 | @ | 0.50 | 22.17 | 21.67 | 21.67 | |