advanced Class III milk | July Class I Milk Price Rebounds to $18.82 per Hundredweight

Class I milk price rises to $18.82/cwt in July, up $1.56 from June, driven by Class III strength and butterfat gains.

Edited by: Damián Morais

US milk pricing rises $1.56 from June, driven by Class III strength, though still trails 2023 levels.

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 from 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.

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This month’s price is based on the “higher-of” formula, where the advanced Class III milk pricing factor—at $9.66 per cwt—outpaced Class IV and thus became the Class I mover. This shift highlights the role of cheese markets, which influence Class III prices, in driving short-term price adjustments under the FMMO framework.

Once regional zone differentials are added to the base price, 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. These regional differences will directly influence the uniform milk prices, to be officially released between August 11–14.

The base skim milk price for Class I also moved up, reaching $9.66 per cwt—an increase of $1.11 from June. Meanwhile, the spread between advanced Class III and Class IV skim pricing factors was 69 cents. The butterfat pricing factor climbed to $2.71 per pound, reflecting adjustments in make allowances and yield factors under ongoing FMMO updates.

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