LUBBOCK, TEXAS (RFD NEWS) — Milk prices are showing signs of recovery after a difficult start to 2026, even as production remains elevated, according to University of Georgia agricultural economist Will Secor.
The all-milk price averaged $17.50 per hundredweight in January, the lowest January level since 2021, driven by a sharp increase in milk production that ran more than 3% above a year earlier. That supply pressure weighed heavily on prices early in the year.
By February, however, conditions began to shift. Milk prices rose about $0.80 per hundredweight from January, a roughly 5% increase, improving margins despite continued higher feed costs. Production remained strong, but demand — particularly from export markets — helped support prices.
Wholesale dairy product prices have also strengthened, with gains in cheese, butter, nonfat dry milk, and whey contributing to improved market conditions. Export volumes are running more than 10% above last year through the first two months.
Looking ahead, risks remain. Strong production levels continue, supported in part by profitable beef-on-dairy dynamics, while export demand could face pressure from higher prices and global uncertainty.
Farm-Level Takeaway: Dairy markets are improving, but large supplies still cap the upside.
Tony St. James, RFD News Markets Specialist
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
April 10, 2026 01:23 PM
·
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
April 10, 2026 12:18 PM
·
Shaun Haney with Real Ag Radio joined us to break down the USMCA review and what Canadian producers and exporters should be watching in the months ahead.
April 09, 2026 02:39 PM
·
Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
April 09, 2026 01:25 PM
·
Reduced driver supply may increase freight costs this season.
April 09, 2026 12:38 PM
·
Overall, the report suggests a shift toward more comfortable supply levels, with demand emerging as a key factor to watch in the months ahead.
April 09, 2026 12:13 PM
·
