# Economic Update: August Class I base milk price falls more than $2 | Ag Proud

> The August Federal Order Class I base price fell $2.57 to $18.76 per hundredweight, the first drop of more than $2 in 2026. The decline followed ample milk production and weaker cheese markets, with Class IV setting the higher-of price.

- Date: 2026-07-23 · published 2026-07-23T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/18339-economic-update-august-class-i-base-milk-price-falls-more-than-2-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A sharp fall in the Class I base price reflects weaker dairy product values and milk supply pressure, which reduces dairy farm margins and softens demand for dairy feed ingredients.

## Read by commodity

- MILK: bearish ▼

## Sources

- agproud.com: https://www.agproud.com/articles/63861-economic-update-august-class-i-base-milk-price-falls-more-than-2

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