WASHINGTON, D.C. (RFD News) — Rising milk production is increasing supply in 2026, but stronger exports and improving dairy prices are helping support the market outlook for producers, according to the USDA’s latest Livestock, Dairy, and Poultry Outlook.
Milk production is forecast at 235.3 billion pounds, driven by a larger dairy herd that is offsetting slightly lower output per cow. Cow numbers have expanded year over year, pushing overall production higher even as margins remain tighter than last year.
Wholesale dairy prices are showing mixed movement. Cheese and nonfat dry milk prices have strengthened, while butter and whey prices have softened. Strong demand, particularly in spot markets for nonfat dry milk, is tightening supplies and supporting price gains.
Exports remain a bright spot. Dairy export volumes reached record levels in February, with gains across cheese, butter, dry whey, and skim milk products. At the same time, imports have declined, tightening domestic supplies.
Despite stronger exports, domestic use is expected to soften slightly as higher prices weigh on consumption.
Farm-Level Takeaway: Strong exports and prices are helping offset rising milk supplies.
Tony St. James, RFD NEWS Markets Specialist
Corn and wheat inspections outpaced last year, but soybean movement remains seasonally active yet behind, keeping basis and freight dynamics in focus by corridor.
October 21, 2025 04:00 PM
·
The new AFBF Women in Agriculture survey is accepting responses from women in the industry across the United States now through March 31.
October 21, 2025 01:56 PM
·
Lawmakers are pressing for answers on how Washington’s “managed trade” approach — keeping leverage through long-term tariffs — will affect farmers, global markets, and future export opportunities.
October 21, 2025 12:17 PM
·
The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.
October 20, 2025 04:06 PM
·
Lyndsey Smith with Real Ag Radio joined RFD-TV to share a Canadian perspective on the discussions.
October 20, 2025 03:30 PM
·
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
October 20, 2025 01:32 PM
·
