
USDA forecast 2026 average prices of $1.64 per pound for cheese, $1.62 for butter, $17.10 per cwt for Class III milk and $17.55 for Class IV milk. Prices for dairy products are trending down as production keeps growing.
Falling forecast dairy prices reduce the value of milk-based returns and signal continued softness in dairy product demand for feed buyers.
After 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.
USDA forecasts lower dairy prices as production keeps growing, which weighs on sentiment and deferred Class III values.
USDA's lower price forecasts for cheese and Class III on growing production fed bearish sentiment right before the drop.
USDA's forecast of falling dairy product prices as production keeps growing reinforced bearish sentiment during the move.
Published on the move date, USDA forecasts of lower dairy prices as production keeps growing point to bearish supply-driven sentiment for Class III milk.