by Andrew P. Griffith, Livestock Marketing Specialist
March 31, 2026
Milk Production
Milk production in the 24 major states during February totaled 17.6 billion pounds, up 3.1 percent from February 2025. Production per cow for February averaged 1,912 pounds. The number of milk cows was 9.18 million head, 13,000 more than January 2026. January production was revised up 0.2 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 2.3% from February a year ago; Wisconsin up 2.8%; Texas up 5.2%; Idaho up 3.5%; and New York up 3.1%. Other states with large production increases were Kansas (28.7%), South Dakota (10.6%) and Utah (7.2%). States with large production decreases were Washington (-4.5%) and New Mexico (-5.7%).
Milk Price and Utilization
The Southeast Uniform milk price for February was $20.14, down $0.65 from January and $3.76 lower than February 2025. The Appalachian Uniform milk price was $19.69 down $0.63 from January and $3.86 lower than February 2025. February’s Class III price was $14.94, up $0.35 from January, and $5.24 lower than February a year ago. The Class IV price was up $2.74 at $16.29, and $3.61 lower than February 2025. The Class I Mover price for April is $18.66, up $3.19 from March. The milk/feed ratio for February was 2.17, up 0.08 from January.
Southeast Class I utilization was 76.13%, down 6.01% from January and 6.48% higher than February a year ago. The Uniform butterfat price was $1.6581 up 11.47 cents from last month and 122.65 cents lower than February 2025. The February Class I price was $20.50. March Class I price is $21.27. Appalachian Class I utilization was 73.73%, down 4.33% from January, and 0.84% higher than February a year ago. The Uniform butterfat price was $1.6660, up 12.70 cents from last month and 121.95 cents lower than February 2025. The February Class I price was $20.30.
Cheese Production and Stocks
Total cheese production in January was 1.28 billion pounds, up 4.7% from a year ago while butter production was up 6.0% to 231 million pounds. Nonfat dry milk (NDM) production was down 6.4% compared to a year ago with total production at 145 million pounds while skim milk powder (SMP) production was up 21.2% to 41.8 million pounds compared to a year ago. Total cheese stocks at the end of February were down 1% from February a year ago and up slightly from the previous month while butter stocks were up 12% from last month and down 17% from a year ago.
Cow Slaughter
Dairy cow slaughter in February was 237,300 head, down 9,500 head from January and 20,300 head more than February 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. |
|---|---|---|---|---|---|---|
| Aug 25 | 23.55 | 24.73 | 17.24 | 18.50 | 76.54 | 2.8123 |
| Sep 25 | 22.72 | 24.50 | 17.59 | 16.17 | 79.77 | 2.4945 |
| Oct 25 | 21.91 | 23.84 | 16.91 | 14.30 | 79.82 | 2.1222 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| Aug 25 | 23.02 | 24.53 | 17.24 | 18.50 | 73.07 | 2.8063 |
| Sep 25 | 22.29 | 24.30 | 17.59 | 16.17 | 77.49 | 2.4702 |
| Oct 25 | 21.42 | 23.64 | 16.91 | 14.30 | 76.11 | 2.0923 |
| 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 |
What is the Market Offering for Milk to be Sold in June?
Ex: It is Mar. 31 and Jun. Class III milk futures are trading at $18.38. Local Jun. basis estimate is +$3.00.
| If June futures | = | 20.00 | 18.50 | 17.00 | |||
| and actual blend price | = | 23.00 | 21.50 | 20.00 | |||
| Sample Strategies | Realized Prices for June Milk | ||||||
| 1) Sold Futures | @ | 18.38 | 21.38 | 21.38 | 21.38 | ||
| 2) Bought Put | 17.50 | @ | 0.39 | 22.61 | 21.11 | 20.11 | |
| 3) Bought Put | 18.00 | @ | 0.60 | 22.40 | 20.90 | 20.40 | |
| 4) Bought Put | 18.50 | @ | 0.85 | 22.15 | 20.65 | 20.65 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 18.38 | |||||
| Bought Call | 19.50 | @ | 0.40 | 21.48 | 20.98 | 20.98 | |