# Dairy Margins Remain Under Pressure as Milk Prices Lag Feed Costs • Northwest Iowa Dairy Outlook • Iowa State University Extension and Outreach

> Dairy producers face tight margins as milk supplies expand and feed costs remain firm heading into 2027. USDA's October WASDE trimmed 2026 and 2027 milk output and cut butter and cheese price forecasts while raising nonfat dry milk and whey forecasts. October Class III milk settled at $14.97 per cwt. while Class IV settled at $20.48, a spread of more than $5.50.

- Date: 2026-10-12 · published 2026-10-12T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/17220-dairy-margins-remain-under-pressure-as-milk-prices-lag-feed-costs-northwest
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Milk prices are lagging feed costs, which keeps dairy margins under pressure and may slow herd expansion over time. The wide Class III and Class IV spread reflects divergent protein and butterfat fundamentals.

## Read by commodity

- MILK: bearish ▼

## Sources

- blogs.extension.iastate.edu: https://blogs.extension.iastate.edu/nwiadairyoutlook/2026/10/12/dairy-margins-remain-under-pressure-as-milk-prices-lag-feed-costs/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.