Feed costs moved to the highest level since May 2025

Dairy feed costs rose to the highest level since May 2025 as milk prices firm. The May Federal order Class III benchmark was set at $16.92 per hundredweight, up 10 cents from April and $1.65 below May 2025, marking the highest Class III price since November 2025. Futures pointed to a June price near $16.12, with July at $16.76 and a peak near $18.45 in November. The May Class IV price rose to $22.32, up $2.10 from April and the highest since November 2022, with a five-month average of $18.26. Production data showed April milk output rising 2.7% year over year, with extensive state-by-state breakdowns for cheese, butter, yogurt, and whey.