by Andrew P. Griffith, Livestock Marketing Specialist
October 30, 2026
Milk Production
Milk production in the 24 major states during September totaled 18.7 billion pounds, up 2.7 percent from September 2025. Production per cow for September averaged 2,012 pounds. The number of milk cows was 9.30 million head, 24,000 more than August 2026. August production was revised up 0.7 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 0.1% from September a year ago; Wisconsin up 3.3%; Texas up 8.6%; Idaho up 2.6%; and New York up 2.4%. Other states with large production increases were Kansas (13.9%), South Dakota (8.6%), (7.0%) and Florida (6.8%). States with large production decreases were Arizona (-5.8%) and Utah (-3.6%).
Milk Price and Utilization
The Southeast Uniform milk price for September was $21.96, down $0.97 from August and $0.76 lower than September 2025. The Appalachian Uniform milk price was $21.64 down $1.07 from August and $0.65 lower than September 2025. September’s Class III price was $16.04, down $0.60 from August, and $1.55 lower than September a year ago. The Class IV price was up $1.58 at $18.94, and $2.77 higher than September 2025. The Class I Mover price for November is $20.27, up $1.36 from October. The milk/feed ratio for September was 1.90, down 0.10 from August.
Southeast Class I utilization was 78.81%, up 6.65% from August and 0.96% lower than September a year ago. The Uniform butterfat price was $1.5234 down 11.44 cents from last month and 97.11 cents lower than September 2025. The September Class I price was $22.84. October Class I price is $24.68. Appalachian Class I utilization was 76.71%, up 2.96% from August, and 0.78% lower than September a year ago. The Uniform butterfat price was $1.5212, down 10.95 cents from last month and 94.90 cents lower than September 2025. The September Class I price was $22.64.
Cheese Production and Stocks
Total cheese production in August was 1.25 billion pounds, up 1.4% from a year ago while butter production was up 6.3% to 187 million pounds. Nonfat dry milk (NDM) production was up 9.6% compared to a year ago with total production at 132 million pounds while skim milk powder (SMP) production was down 33.1% to 28.9 million pounds compared to a year ago. Total cheese stocks at the end of September were up 2% from September a year ago and down 1% from the previous month while butter stocks were down 5% from last month and up 16% from a year ago.
Cow Slaughter
Dairy cow slaughter in September was 234,800 head, up 13,700 head from August and 7,600 head more than September 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. |
|---|---|---|---|---|---|---|
| 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 |
| Jul 26 | 25.50 | 27.13 | 15.52 | 18.34 | 73.34 | 1.7132 |
| Aug 26 | 22.93 | 24.56 | 16.64 | 17.36 | 72.16 | 1.6378 |
| Sept 26 | 21.96 | 22.84 | 16.04 | 18.94 | 78.81 | 1.5234 |
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. |
|---|---|---|---|---|---|---|
| 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 |
| Jul 26 | 25.40 | 26.93 | 15.52 | 18.34 | 73.15 | 1.7132 |
| Aug 26 | 22.71 | 24.36 | 16.64 | 17.36 | 73.75 | 1.6307 |
| Sep 26 | 21.64 | 22.64 | 16.04 | 18.94 | 76.71 | 1.5212 |
What is the Market Offering for Milk to be Sold in January?
Ex: It is Oct. 30 and Jan. Class III milk futures are trading at $16.70. Local Jan. basis estimate is +$3.00.
| If January futures | = | 18.25 | 16.75 | 15.25 | |||
| and actual blend price | = | 21.25 | 19.75 | 18.25 | |||
| Sample Strategies | Realized Prices for January Milk | ||||||
| 1) Sold Futures | @ | 16.70 | 19.70 | 19.70 | 19.70 | ||
| 2) Bought Put | 15.75 | @ | 0.38 | 20.87 | 19.37 | 18.37 | |
| 3) Bought Put | 16.25 | @ | 0.57 | 20.68 | 19.18 | 18.68 | |
| 4) Bought Put | 16.75 | @ | 0.79 | 20.46 | 18.96 | 18.96 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 16.70 | |||||
| Bought Call | 17.75 | @ | 0.39 | 19.81 | 19.31 | 19.31 | |