USDA Cuts 2026 Milk Outlook to $19.85/cwt as Tight Dairy Supplies Lift NDM and Whey
Updated
Updated · czapp.com · Aug 19
USDA Cuts 2026 Milk Outlook to $19.85/cwt as Tight Dairy Supplies Lift NDM and Whey
1 articles · Updated · czapp.com · Aug 19
Summary
USDA lowered its 2026 all-milk price forecast to $19.85 per cwt from $20 and trimmed 2027 to $19.80, while cutting butter prices by 4.5 cents per pound in both years.
Strong demand and tight supplies drove the disconnect: nonfat dry milk, whey proteins and cheese all strengthened, with whey protein concentrate 34% described as very tight and WPC 80% still hard to source.
Mexican buying and back-to-school demand supported NDM, lactose and cheese, while school openings diverted milk into Class I bottling and left Central and East drying inventories especially slim.
USDA left its 2026 milk production forecast unchanged but slightly lowered 2027 output on reduced production per cow, as Western milk flows stayed mixed amid heat, fires and smoke.