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USDA says milk production was up in September

USDA says milk production was higher again in the September supply and demand report.  Higher milk cow inventories and robust milk per cow are credited with the jump in production.   

USDA says the September milk production is estimated at 230.0 billion pounds, with September 2026 projected even higher at 231.3 billion pounds. 

The September Class III milk price for cheesemaking was $18.20 per hundredweight, while the Class IV price for butter and powdered milk products was $18.15.  The national all milk price for September was $21.35. 

The milk production forecast for 2026 is also raised, as the higher inventories and increased productivity rates are expected to carry into next year.  

The butter price forecast for 2025 is reduced as increased supplies of milkfat have resulted in sharply lower prices for the third and fourth quarters of 2025.  USDA says lower cheese prices more than offset higher whey prices.  September butter was $2.36 per pound.  Cheese and nonfat dry milk (NDM) prices are also lowered for 2025 as increased milk supplies put downward pressure on dairy product prices. The whey price forecast is raised on strong demand.  September cheese settled at $1.8150, nonfat dry milk at $$1.2550, and whey at $0.5750. 

Another dairy supply and demand is coming Friday, only a week after the September figures were released as USDA catches up from the government shutdown.