The milk production forecasts for 2025 and 2026 are raised from last month on higher cow inventories and an increased rate of growth in milk per cow based on the latest NASS Milk Production report.
For 2025, commercial dairy exports are raised on both a fat and skim-solids basis, primarily on increased shipments of cheese and dried skim milk products. For 2026, commercial exports are also raised on both a fat and skim-solids basis. Commercial imports for 2025 are lowered on a fat basis but increased on a skim-solids basis. For 2026, fat basis imports are raised while skim-solids basis imports are lowered.
For 2025, the price forecast for cheese is lowered on recent prices. Butter, nonfat dry milk (NDM), and whey prices are increased from the previous month’s forecast on robust demand. The Class III price for 2025 is lowered, as lower cheese prices more than offset higher whey prices. The Class IV price is raised on higher butter and NDM prices. The all milk price is forecast higher at $22.00 per cwt. For 2026, butter, NDM, and whey prices are raised, while the cheese price is unchanged. The Class III price is raised on increased whey prices. The Class IV price is raised on higher butter and NDM prices. The all milk price is raised to $21.65 per cwt.
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