July Class I Milk Price Rebounds to $18.82 per Hundredweight

The USDA’s Federal Milk Marketing Order (FMMO) has set July’s advanced Class I base milk price at $18.82 per hundredweight (cwt), a $1.56 increase fr om June’s figure. Despite this rebound, the price remains $2.29 per cwt lower than July 2023, signaling a partial recovery in milk pricing amid ongoing volatility in dairy markets.
The rise is largely attributed to the strength of Class III milk prices, particularly influenced by cheese markets, as well as increased butterfat gains.

This month’s price is based on the “higher-of” formula, wh ere the advanced Class III milk pricing factor, at $9.66 per cwt, outpaced Class IV, thus becoming the Class I mover.
Once regional zone differentials are added, July’s actual Class I prices will average around $20.12 per cwt across all FMMOs. The highest regional price is expected in the Appalachian FMMO at $21.02 per cwt, while Arizona will post the lowest at $19.07 per cwt. The evolving dynamics of skim and butterfat prices continue to influence margins and forward contracting strategies.