Loading…
USDA trimmed its 2026 milk production forecast by about 100 million pounds and lowered 2026 Class III and IV prices, with the all-milk price cut by 50 cents to $18.75/cwt. Butter supplies are high and prices are low, which USDA expects to encourage exports.
Dry whey and nonfat dry milk showed relative strength.
Lower projected 2026 milk prices and softer butter and cheese values weigh on dairy returns, while the smaller production forecast is a modest supportive factor for milk prices.
pnwag.netGlenn VaagenJan 2, 2026After 273 past bearish report events, Milk (Class III) moved a median -0.2% over 5 sessions (39% higher; middle half -1.3% to +0.4%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
