Like the previous month, milk checks for July production will reflect weak protein and Class III milk prices. The wide price spread between Class III-IV milk prices means Class IV depooling will remain heavy.

Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.

June 2023 FMMO pooling estimates, uniform prices and producer price differentials are scheduled to be released the week of July 10.

Based on Class III-IV milk futures prices, depooling incentives flip back to Class IV milk handlers in May and June.

Corn and soybean meal price projections are lower, but on-farm hay inventories are down.

Class IV milk represented about 17% of the total milk pooled in all FMMOs in March, the highest volume and percentage since last May.

Factoring into dairy feed costs, 2023 dry hay acreage is expected to rebound slightly from last year’s 115-year low.

Central to IDFA and WCMA petitions are make allowances, incorporated into FMMO milk pricing formulas two decades ago.

Uniform prices were lower, the "average-of" Class I mover formula provided a small benefit on Class I prices and more Class IV milk returned to the pool.