Fluctuations in Milk Prices as Classes III and IV Decline

The milk market in June presented a mixed scenario with varying price movements across different classes. On May 20, it was announced that the June Class I base price surged to $22.18 per hundredweight (cwt), marking a $2.03 increase from the previous month and a $4.92 rise compared to June 2025. This positioned Class I at its highest level since late 2024. Similarly, Class II prices rose by $2.50 per cwt from May, reaching $22.78 per cwt.

In contrast, Classes III and IV experienced downward pressure. Announced on July 1, the June Class III price fell by 94 cents to $15.98 per cwt, which is $2.84 below the same period last year. Class IV prices decreased by $1.36 to $20.96 per cwt. These changes reduced the spread between Classes III and IV to $4.98 per cwt, a gap that still encourages processors to depool higher-value Class IV milk, potentially affecting final producer blend checks.

These shifts are mirrored by declines in milk component values from May to June. Butterfat saw a slight decrease of one cent, settling at $1.69 per pound. Cheese-producing protein values dropped from $2.75 to $2.46 per pound. Nonfat dry solids decreased by 14 cents to $1.68 per pound, with a marginal one-cent increase in other solids to 39 cents per pound.