USDA Forecasts 2026-2027 Milk Prices with Expected Fluctuations
The U.S. Department of Agriculture (USDA) has announced its price forecasts for milk and milk products for the years 2026 and 2027. According to Mark Jekanowski, Chair of the World Agricultural Outlook Board, strong nonfat dry milk prices have led to an increase in class four milk prices. For 2026, the class four price is projected to rise by $1.35 per hundredweight, reaching $19.95 per hundredweight. This increase is expected to reverse in 2027, with prices anticipated to drop by $1.35 per hundredweight, settling at $18.60 per hundredweight.
In contrast, the USDA has raised its class three price forecast for 2026, driven by strong whey market conditions. The class three price is projected at $17 per hundredweight for 2026 and is expected to increase by $0.55 to $17.55 per hundredweight in 2027.
The all-milk price for 2026 is forecasted at $21.25 per hundredweight but is expected to see a slight decline in 2027, with a forecasted price of $20.95 per hundredweight.
Specifically, the cheese price forecast for 2027 is anticipated to increase by approximately $0.07 per pound year-over-year, while the butter price is expected to rise by $0.10 per pound year-over-year. On the other hand, the markets for dry products such as nonfat dry milk and dry whey are projected to stabilize, remaining high but moving away from record highs.
These forecasts provide insights into how the USDA expects market dynamics to play out over the next two years, reflecting changes in supply and demand conditions across various dairy product categories.
