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Dairy - Market Outlook

See the latest Livestock, Dairy, and Poultry Outlook report.

Report Summary

Dairy: In 2026, the dairy cow herd is projected to average 9.540 million head, 15,000 fewer head than last month’s forecast. However, the milk production forecast is revised upward to 234.5 (+0.2) billion pounds due to higher expected growth in milk per cow. Annual wholesale price forecasts for Cheddar cheese, butter, nonfat dry milk, and dry whey are revised upward based on recent price movements. Consequently, Class III and IV milk price forecasts for 2026 are increased to $16.65 per hundredweight (cwt) and $15.70 per cwt, respectively. The 2026 all-milk price forecast is adjusted to $18.95 per cwt, an increase of $0.70.