by Andrew P. Griffith, Livestock Marketing Specialist
July 31, 2025
Milk Production
Milk production in the 24 major states during June totaled 18.5 billion pounds, up 3.4 percent from June 2024. Production per cow for June averaged 2,045 pounds. The number of milk cows was 9.03 million head, 3,000 more than May 2025. May production was revised up 0.7 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 2.7% from June a year ago; Wisconsin up 0.3%; Texas up 9.5%; Idaho up 9.7%; and New York up 2.0%. Other states with large production increases were Kansas (19.0%), South Dakota (11.5%), and Georgia (9.5%). States with large production decreases were Washington (-9.4%) and Oregon (-1.9 %).
Milk Price and Utilization
The Southeast Uniform milk price for June was $22.18, up $0.82 from May and $1.05 lower than June 2024. The Appalachian Uniform milk price was $21.94 up $0.96 from May and $0.90 lower than June 2024. June’s Class III price was $18.82, up $0.25 from May, and $1.05 higher than June a year ago. The Class IV price was up $0.17 at $18.30, and $2.78 lower than June 2024. The Class I Mover price for August is $18.93, up $0.11 from July. The milk/feed ratio for June was 2.34, up 0.10 from May.
Southeast Class I utilization was 66.23%, down 2.34% from May and 6.12% higher than June a year ago. The Uniform butterfat price was $2.6905, up 1.95 cents from last month and 83.28 cents lower than June 2024. The June Class I price was $23.06. July Class I price is $24.62. Appalachian Class I utilization was 67.82%, down 2.97% from May, and 4.69% lower than June a year ago. The Uniform butterfat price was $2.6927, up 2.09 cents from last month and 83.05 cents lower than June 2024. The June Class I price was $22.86.
Cheese Production and Stocks
Total cheese production in May was 1.25 billion pounds, up 3.3% from a year ago while butter production was up 3.5% to 212 million pounds. Nonfat dry milk (NDM) production was down 5.6% compared to a year ago with total production at 158 million pounds while skim milk powder (SMP) production was down 3.8% to 47.8 million pounds compared to a year ago. Total cheese stocks at the end of June were down slightly from June a year ago and up slightly from the previous month while butter stocks were down 3% from last month and down 6% from a year ago.
Cow Slaughter
Dairy cow slaughter in June was 188,800 head, down 8,000 head from May and 2,400 head more than June 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. |
|---|---|---|---|---|---|---|
| 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 |
| Jun 25 | 22.18 | 23.06 | 18.82 | 18.30 | 66.23 | 2.6905 |
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 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 |
| Jun 25 | 21.94 | 22.86 | 18.82 | 18.30 | 67.82 | 2.6927 |
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 $18.16. Local Oct. basis estimate is +$3.00.
| If October futures | = | 19.75 | 18.25 | 16.75 | |||
| and actual blend price | = | 22.75 | 21.25 | 19.75 | |||
| Sample Strategies | Realized Prices for October Milk | ||||||
| 1) Sold Futures | @ | 18.16 | 21.16 | 21.16 | 21.16 | ||
| 2) Bought Put | 17.25 | @ | 0.38 | 22.37 | 20.87 | 19.87 | |
| 3) Bought Put | 17.75 | @ | 0.57 | 22.18 | 20.68 | 20.18 | |
| 4) Bought Put | 18.25 | @ | 0.81 | 21.94 | 20.44 | 20.44 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 18.16 | |||||
| Bought Call | 19.25 | @ | 0.35 | 21.31 | 20.81 | 20.81 | |