NASHVILLE, TENN. (RFD-TV) — U.S. milk production surged over the summer, climbing 3.6 percent year-over-year during June through August, while milkfat output jumped 5.3 percent, according to the latest Dairy Market Report from the National Milk Producers Federation.
Dairy cow numbers rose to 9.5 million head, and per-cow output averaged 6,153 pounds for the period — reflecting both strong productivity and rising milkfat composition, now averaging 4.2 percent.
Despite record-high production, fluid milk sales fell by four percent in August from a year earlier and 1.7 percent for the quarter, underscoring weak consumer demand. The all-milk price averaged $20.90 per hundredweight, modestly higher than July, while feed costs dropped enough to lift the Dairy Margin Coverage (DMC) margin to $11.52 per hundredweight. Still, retail dairy inflation remains mild — up just 0.7 percent from last year — compared with three percent overall food inflation.
Butter inventories declined 6 percent year-over-year, while American cheese stocks rose 3 percent. Wholesale butter prices tumbled to $2.04 per pound, down more than a dollar from last August, dragging Class II, III, and IV milk prices lower across the board. Analysts say margins may tighten again into late 2025 as milk output continues to expand faster than consumption, though international demand could lend some support.
Farm-Level Takeaway: High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
Tony St. James, RFD-TV Markets Expert
Agronomy experts explain why standing crop residue protects soil and reduces costs for crop growers, while shredding often yields little benefit at higher costs.
January 14, 2026 08:00 AM
·
Secretary Rollins also met with specialty crop producers at a local strawberry farm to discuss workforce needs and the Trump Administration’s recent wins related to significantly cutting the cost of H-2A labor for California farmers.
January 13, 2026 03:25 PM
·
China’s beef policy risk stems from domestic volatility, making export demand inherently unstable. Jake Charleston with Specialty Risk Insurance offers his perspective on cattle markets, risk management, and producer sentiment.
January 13, 2026 02:13 PM
·
USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
January 13, 2026 01:53 PM
·
Larger grain stocks increase supply pressure, but strong fall disappearance — especially for corn and sorghum — suggests demand remains an important offset.
January 13, 2026 01:02 PM
·
Record corn and sorghum crops boost feed grain supplies, while reduced soybean and cotton production tighten outlooks for oilseeds and fiber markets.
January 13, 2026 12:53 PM
·
