# Milk Prices Lowered, Dry Products Look Strong

> 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.

- Date: 2026-01-02 · published 2026-01-02T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/21220-milk-prices-lowered-dry-products-look-strong
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

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.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2024-10-28 | [Milk price projections lowered - Dairy Star](https://feedsoft.ai/events/4683-milk-price-projections-lowered-dairy-star.md) | -10.9% | -12.6% |
| MILK | 2026-07-11 | [Cheese production higher, milk prices lower - Dairy Star](https://feedsoft.ai/events/18337-cheese-production-higher-milk-prices-lower-dairy-star.md) | +0.4% | +7.1% |
| MILK | 2026-01-10 | [Milk prices lower again - Dairy Star](https://feedsoft.ai/events/21215-milk-prices-lower-again-dairy-star.md) | -0.8% | +2.4% |
| MILK | 2016-11-02 | [Increased milk production pressures prices lower](https://feedsoft.ai/events/73986-increased-milk-production-pressures-prices-lower.md) | +13.4% | +14.8% |
| MILK | 2021-07-29 | [Too much milk drives prices lower](https://feedsoft.ai/events/46064-too-much-milk-drives-prices-lower.md) | -3.0% | -3.0% |

## Sources

- pnwag.net: https://pnwag.net/milk-prices-lowered/

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