The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report, released Feb. 8, reduced both 2022 and 2023 U.S. milk production estimates from last month, but also cut 2023 price projections.

Class IV pooling across all FMMOs represented about 8% of the total milk pooled. It was the 10th month in 2022 that Class IV pooling was below 10% of total milk pooled.

Class IV pooling across all FMMOs represented about 7% of the total milk pooled. It was the ninth month so far in 2022 that Class IV pooling was below 10% of total milk pooled.

The spread between Class IV and Class III milk prices continues to decline, suggesting a reduction in Class IV depooling – but maybe not yet.

A wide gap in September Federal Milk Marketing Order (FMMO) Class IV and Class milk prices extends the incentive to depool Class IV milk.