by Andrew P. Griffith, Livestock Marketing Specialist
August 31, 2026
Milk Production
Milk production in the 24 major states during July totaled 19.4 billion pounds, up 2.3 percent from July 2025. Production per cow for July averaged 2,093 pounds. The number of milk cows was 9.27 million head, 2,000 more than June 2026. June production was revised up 0.7 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 0.8% from July a year ago; Wisconsin up 2.6%; Texas up 4.4%; Idaho up 2.1%; and New York up 2.2%. Other states with large production increases were Kansas (15.4%), South Dakota (6.8%), Oregon (6.4%), and Florida (5.8%). States with production decreases were Washington (-2.0%) and Ohio (-0.4%).
Milk Price and Utilization
The Southeast Uniform milk price for July was $25.50, down $0.98 from June and $1.82 higher than July 2025. The Appalachian Uniform milk price was $25.40 down $0.65 from June and $2.16 higher than July 2025. July’s Class III price was $15.52, down $0.46 from June, and $1.80 lower than July a year ago. The Class IV price was down $1.62 at $18.34, and $0.55 lower than July 2025. The Class I Mover price for September is $17.04, down $1.72 from August. The milk/feed ratio for July was 2.12, down 0.11 from June.
Southeast Class I utilization was 73.34%, down 0.27% from June and 0.34% lower than July a year ago. The Uniform butterfat price was $1.7132 down 1.66 cents from last month and 109.35 cents lower than July 2025. The July Class I price was $27.13. August Class I price is $24.56. Appalachian Class I utilization was 73.15%, up 1.02% from June, and 1.44% higher than July a year ago. The Uniform butterfat price was $1.7132, down 1.67 cents from last month and 109.74 cents lower than July 2025. The July Class I price was $26.93.
Cheese Production and Stocks
Total cheese production in June was 1.23 billion pounds, up 1.1% from a year ago while butter production was up 8.5% to 208 million pounds. Nonfat dry milk (NDM) production was up 14.2% compared to a year ago with total production at 165 million pounds while skim milk powder (SMP) production was down 46.8% to 28.7 million pounds compared to a year ago. Total cheese stocks at the end of July were up slightly from July a year ago and down slightly from the previous month while butter stocks were down 3% from last month and down 3% from a year ago.
Cow Slaughter
Dairy cow slaughter in July was 227,600 head, up 19,500 head from June and 1,800 head more than July 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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
What is the Market Offering for Milk to be Sold in November?
Ex: It is Aug. 31 and Nov. Class III milk futures are trading at $17.67. Local Nov. basis estimate is +$3.00.
| If November futures | = | 18.00 | 16.50 | 15.00 | |||
| and actual blend price | = | 21.00 | 19.50 | 18.00 | |||
| Sample Strategies | Realized Prices for November Milk | ||||||
| 1) Sold Futures | @ | 16.58 | 19.58 | 19.58 | 19.58 | ||
| 2) Bought Put | 15.50 | @ | 0.25 | 20.57 | 19.25 | 18.25 | |
| 3) Bought Put | 16.00 | @ | 0.35 | 20.65 | 19.15 | 18.65 | |
| 4) Bought Put | 16.50 | @ | 0.55 | 20.45 | 18.95 | 18.95 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 16.58 | |||||
| Bought Call | 17.50 | @ | 0.59 | 19.49 | 18.99 | 18.99 | |