# Dairy Market Outlook: Milk Supplies Steady, Prices Ease in 2026

> USDA's December outlook projects 2025 milk output at 231.4 billion pounds and lowers the 2026 forecast to 234.1 billion pounds as dairy cow numbers decline. Farm margins have tightened, with the DMC margin in August more than $2 below the year before.

- Date: 2025-12-18 · published 2025-12-18T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/21495-dairy-market-outlook-milk-supplies-steady-prices-ease-in-2026
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Softer milk prices and tighter margins are expected into 2026, which tends to push culling higher and keeps dairy-based feed demand subdued.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2026-07-20 | [USDA Dairy Outlook: Milk Production Grows While Prices Ease](https://feedsoft.ai/events/18530-usda-dairy-outlook-milk-production-grows-while-prices-ease.md) | +0.3% | +5.1% |
| MILK | 2026-08-22 | [Larger Dairy Herd Shapes U.S. Milk Price Outlook Into 2027](https://feedsoft.ai/events/18030-larger-dairy-herd-shapes-u-s-milk-price-outlook-into-2027.md) | +0.1% | -2.9% |
| MILK | 2017-08-02 | [Dairy Market Outlook Q3 2017](https://feedsoft.ai/events/5480-dairy-market-outlook-q3-2017.md) | +4.8% | +6.7% |
| MILK | 2024-05-21 | [Market Outlook - Dairy Producer](https://feedsoft.ai/events/30249-market-outlook-dairy-producer.md) | -0.9% | +6.1% |
| MILK | 2024-12-17 | [Market Outlook: December 2024 - Dairy Producer](https://feedsoft.ai/events/26965-market-outlook-december-2024-dairy-producer.md) | -0.5% | +8.2% |

## Sources

- dairyproducer.com: https://dairyproducer.com/dairy-market-report-milk-supplies-prices-2026/

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