August 2026 milk production, the four-class pricing system, and the 2025 Federal Milk Marketing Order reforms Key Takeaways:
U.S. milk production is growing because the herd is larger, not because cows are producing more milk. August output increased 1.7 percent, even as production per cow declined slightly. Most new production is occurring in cheese-oriented or federally unregulated regions. This makes the destination of the additional milk increasingly important because federal pricing varies by end use and region. The 2025 FMMO reforms redistributed revenue unevenly. Fluid-heavy markets generally benefited from higher Class I differentials and the restored higher-of formula, while higher make allowances reduced prices and pool revenue i...
What You Need to Know Today: The U.S. dollar continued to strengthen Thursday as persistent inflation reinforced expectations for additional Federal Reserve interest rate hikes. Higher Treasury yields have helped support the dollar, potentially reducing the competitiveness of U.S. agricultural...
In yesterday’s WASDE, USDA reduced its overall red meat and poultry production forecast for 2026 as declines in beef and broiler output more than offset increases in pork and turkey production. Fourth-quarter beef production was revised downward because of slower fed cattle marketings and...
Key Takeaways: Dry bulk freight markets were stronger this week, but the rally was uneven and due to divergent dynamics across basins and vessel classes. Panamax markets were broadly higher, but Atlantic grain demand was primarily responsible while Asian activity was subdued. That trend...
