Class III milk futures in the United States are holding steady at $18.50 per hundredweight as of May 2025, after years of price swings. A recent rise in national milk production and revised government figures have contributed to cautious market sentiment. Upcoming cold storage data could influence summer pricing, especially if cheese inventories continue to build.
Class III milk futures in the United States are currently priced at $18.50 per hundredweight, marking a period of relative calm after years of extreme price fluctuations. Historically, these futures have ranged from a high of $24 in 2014 to a sharp low of $11.50 in 2020, reflecting broader shifts in market demand and production.
Recent data indicates that U.S. milk production rose by 1.5% in April 2025 compared to the previous year. This increase is attributed to a larger dairy herd, with around 89,000 more cows added nationwide. Additionally, updated figures from the March report reveal that production growth was revised from 0.9% to 1%, signaling a trend of increasing supply.
Market participants are closely watching for the release of the upcoming cold storage report, which is expected to shed light on cheese and butter inventory levels. If inventories are found to be increasing, it may suppress any potential summer price rally, despite generally strong global demand for dairy products.
With current milk prices positioned in the mid-range of their historical spectrum, analysts emphasize the importance of monitoring both domestic production and inventory data to anticipate future market movements.
