Friday Closing Dairy Market Update - February Milk Output Up 2.9%

GENERAL OVERVIEW:

Milk futures were higher in light trading activity following the increase in spot prices. The USDA released the February Milk Production report showing production up 2.0% from February 2025. Cow numbers jumped by 15,000 head from January.

MILK:

Milk futures were higher in response to the increase in all categories in the spot markets except barrels. Trading volume was light in Class III futures. Traders looked ahead to the February Milk Production report and limited activity. The February report showed production in the top 24 states, up 3.1%, totaling 17.6 billion pounds. January milk production was revised 0.2% higher. Production per cow totaled 1,912 pounds and was 13 pounds higher than a year ago. Cow numbers were 13,000 head more than in January. Milk production in the U.S. was 2.9% above a year ago. Milk production per cow totaled 1,899 pounds, 12 pounds above February 2025. Cow numbers increased by 15.000 head from the previous month. The nation's dairy herd totaled 9.62 million head, 211,000 more than in February 2025. This is a negative report.

AVERAGE CLASS III PRICES:

3 Month:	$17.08
6 Month:	$17.69
9 Month:	$17.97
12 Month:	$17.86

CHEESE:

For the week. blocks jumped 13.25 cents with seven loads traded. The weekly average price is $1.6160. The barrel price increased 4.00 cents with no loads traded. The weekly average price is $1.5560. Dry whey remained unchanged at 66.00 cents with four loads traded. The weekly average price is 65.20 cents. The block price moved to the highest price since Nov. 3, 2025, keeping the uptrend intact.

BUTTER:

For the week, butter declined by 4.75 cents with 70 loads traded. The weekly average price is $1.8185. Grade A nonfat dry milk jumped 10.50 cents with 34 loads traded. The weekly average price is $1.8260. I do not believe the Grade A nonfat dry milk price has ever moved higher than the butter price as it did this week. The price is back to the highest level it has been since June 13, 2022.

OUTSIDE MARKETS SUMMARY:

May corn closed down 4.25 cents per bushel at $4.6550, May soybeans closed down 7.25 cents at $11.6125 and May soybean meal closed down $4.50 per ton at $328.00. May Chicago wheat closed down 12.75 cents at $5.9525. June live cattle closed up $1.73 at $233.43. May crude oil is up $2.26 per barrel at $97.81. The Dow Jones Industrial Average is down 444 points at 45,577, with the NASDAQ down 443 points at 21,648.

February Milk Production in the United States up 2.9 Percent

February Milk Production up 3.1 Percent        

Milk production in the 24 major States during February totaled 17.6 billion pounds, up 3.1 percent from February 2025. January revised production, at 19.1 billion pounds, was up 3.6 percent from January 2025. The January revision represented an increase of 37 million pounds or 0.2 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 1,912 pounds for February, 13 pounds above February 2025.   The number of milk cows on farms in the 24 major States was 9.18 million head, 217,000 head more than February 2025, and 13,000 head more than January 2026.  

February Milk Production in the United States up 2.9 Percent  

Milk production in the United States during February totaled 18.3 billion pounds, up 2.9 percent from February 2025.  Production per cow in the United States averaged 1,899 pounds for February, 12 pounds above February 2025.  The number of milk cows on farms in the United States was 9.62 million head, 211,000 head more than February 2025, and 15,000 head more than January 2026. 

Friday Midday Dairy Market Update - Spot Prices Show Strength

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	9 Lower
SOYBEAN MEAL:	$4.50 Lower
LIVE CATTLE:	$0.67 Higher
DOW JONES:	276 Points Lower
NASDAQ:	342 Points Lower
CRUDE OIL:	$1.58 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 1.50 cents, closing at $1.6625 with two loads traded. The barrel cheese price remained unchanged at $1.57 with no loads traded. The dry whey price increased 1.50 cents to 66.00 cents with one load traded. Class III futures are mixed with contracts ranging from 10 cents lower to 9 cents higher. The butter price increased 0.75 cent closing at $1.80 with eight loads traded. Grade A price increased 2.50 to close at $1.87 with five loads traded. Class IV futures are mostly higher, with contracts ranging from 1 cent lower to 15 cents higher. Butter futures are steady to 1.15 cents higher. Dry whey futures are 0.17 cent lower to 0.25 cent higher. Cheese futures are 1.10 cents lower to 1.40 cents higher. The February Milk Production report will be released this afternoon.