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The USDA July Announcement of Class and Component Prices showed Class III and Class IV milk prices narrowing toward each other, with the gap under $3/cwt for the first time since March. The July advanced Class I base price fell 85 cents to $21.33/cwt, and Class II, III and IV prices all declined from June, with Class IV dropping $2.62.
Narrowing class spreads reflect softening cheese and butter demand against ample milk supply, pressuring farm milk checks. Lower class prices weigh on dairy feed demand expectations.
agproud.comJenn CoyneAug 5, 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.
The July class price announcement on Aug 5 coincided with the move, and Class III and IV prices converging may have prompted repositioning, though lower July prices were largely known and are not clearly bullish.
