# Class III-IV gap widens to largest spread since 2020 | Ag Proud

> The USDA May class prices show Class IV at $22.32 per cwt, driven by nonfat dry milk and skim milk powder, with Class III up only 10 cents to $16.92. The Class III-IV gap of $5.40 is the widest since 2020, which is expected to prompt depooling.

- Date: 2026-06-03 · published 2026-06-03T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/7956-class-iii-iv-gap-widens-to-largest-spread-since-2020-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A wide Class III-IV spread shifts the value of milk toward protein-driven uses and can change pooling and milk flows. Strength in powder prices supports dryer returns, while Class III stays weak.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2022-10-06 | [September FMMO class prices dip and Class III-Class IV gap widens \| Ag Proud](https://feedsoft.ai/events/5114-september-fmmo-class-prices-dip-and-class-iii-class-iv-gap-widens-ag-proud.md) | -1.2% | -6.5% |
| MILK | 2024-10-10 | [Food prices post largest increase since January \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/27871-food-prices-post-largest-increase-since-january-agri-pulse-communications-inc.md) | -0.1% | -11.7% |
| MILK | 2023-11-29 | [Weekly Digest: November FMMO milk class prices announced \| Ag Proud](https://feedsoft.ai/events/6752-weekly-digest-november-fmmo-milk-class-prices-announced-ag-proud.md) | -4.7% | -5.9% |
| MILK | 2021-04-14 | [March negative PPDs continue to climb out of 2020 depths \| Ag Proud](https://feedsoft.ai/events/47769-march-negative-ppds-continue-to-climb-out-of-2020-depths-ag-proud.md) | +0.5% | +7.3% |
| MILK | 2026-08-22 | [Price forecasts higher Class III, lower Class IV - Dairy Star](https://feedsoft.ai/events/17916-price-forecasts-higher-class-iii-lower-class-iv-dairy-star.md) | +0.1% | -2.9% |

## Sources

- agproud.com: https://www.agproud.com/articles/63602-class-iii-iv-gap-widens-to-largest-spread-since-2020

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