by Andrew P. Griffith, Livestock Marketing Specialist
May 29, 2026
Milk Production
Milk production in the 24 major states during April totaled 19.2 billion pounds, up 2.8 percent from April 2025. Production per cow for April averaged 2,082 pounds. The number of milk cows was 9.21 million head, 12,000 more than March 2026. March production was revised up 0.4 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 2.3% from April a year ago; Wisconsin up 2.9%; Texas up 4.4%; Idaho up 3.0%; and New York up 0.9%. Other states with large production increases were Kansas (23.7%), Oregon (7.4%), and South Dakota (6.3%). States with large production decreases were Washington (-7.0%) and Pennsylvania (-2.0%).
Milk Price and Utilization
The Southeast Uniform milk price for April was $22.94, up $1.99 from March and $0.65 higher than April 2025. The Appalachian Uniform milk price was $22.86 up $2.22 from March and $1.14 higher than April 2025. April’s Class III price was $16.82, up $0.66 from March, and $0.66 lower than April a year ago. The Class IV price was up $1.28 at $20.22, and $2.30 higher than April 2025. The Class I Mover price for June is $22.18, up $2.03 from May. The milk/feed ratio for April was 2.26, up 0.01 from March.
Southeast Class I utilization was 70.53%, down 1.62% from March and 0.39% lower than April a year ago. The Uniform butterfat price was $1.9581 up 5.88 cents from last month and 69.31 cents lower than April 2025. The April Class I price was $24.46. May Class I price is $25.95. Appalachian Class I utilization was 73.95%, up 3.86% from March, and 7.44% higher than April a year ago. The Uniform butterfat price was $1.9596, up 4.80 cents from last month and 69.18 cents lower than April 2025. The April Class I price was $24.26.
Cheese Production and Stocks
Total cheese production in March was 1.26 billion pounds, up 1.2% from a year ago while butter production was up 1.2% to 232 million pounds. Nonfat dry milk (NDM) production was up 9.9% compared to a year ago with total production at 175 million pounds while skim milk powder (SMP) production was up 10.1% to 37.4 million pounds compared to a year ago. Total cheese stocks at the end of April were down 1% from March a year ago and up 1% from the previous month while butter stocks were up 6% from last month and down 9% from a year ago.
Cow Slaughter
Dairy cow slaughter in April was 215,100 head, down 24,100 head from March and 7,900 head more than April 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. |
|---|---|---|---|---|---|---|
| Nov 25 | 20.82 | 22.55 | 17.18 | 13.89 | 75.99 | 1.7975 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| Oct 25 | 21.42 | 23.64 | 16.91 | 14.30 | 76.11 | 2.0923 |
| Nov 25 | 20.45 | 22.35 | 17.18 | 13.89 | 72.83 | 1.7951 |
| 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 |
What is the Market Offering for Milk to be Sold in July?
Ex: It is May 29 and Aug. Class III milk futures are trading at $17.28. Local Aug. basis estimate is +$3.00.
| If August futures | = | 18.75 | 17.25 | 15.75 | |||
| and actual blend price | = | 21.75 | 20.25 | 18.75 | |||
| Sample Strategies | Realized Prices for June Milk | ||||||
| 1) Sold Futures | @ | 17.28 | 20.28 | 20.28 | 20.28 | ||
| 2) Bought Put | 16.25 | @ | 0.33 | 21.42 | 19.92 | 18.92 | |
| 3) Bought Put | 16.75 | @ | 0.51 | 21.24 | 19.74 | 19.24 | |
| 4) Bought Put | 17.25 | @ | 0.75 | 21.00 | 19.50 | 19.50 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 17.28 | |||||
| Bought Call | 18.25 | @ | 0.41 | 20.37 | 19.87 | 19.87 | |