All dairy pricing trends are based on USDA and CME data as of September 9, 2026.
Butter
The domestic butter market fell over the past week to its lowest prices since early January, although additional order interest continues to materialize given historic value and the seasonal bias for prices to rally into early Q4. Record milk production has kept abundant supplies of cream coming to market and butter churns continuing to run at record levels. The USDA reported that July butter production set another monthly record and was 5.5% higher than last year. Updated cold storage levels confirmed that stocks are declining seasonally and remain 3% lower than last year, but the seasonal drawdown from June was the smallest since 2020. Record domestic consumption and extremely competitive export pricing are working to clear the excess production coming to market as a result of the record churn pace seen so far this year, according to analysts.
Cheese
Blocks edged slightly lower again over the past week. Larger overall cheese output will continue to keep pressure on the export markets to clear additional supplies, as domestic demand has been lackluster, according to analysts.
Shell Eggs
Urner Barry reported that shell egg prices were relatively steady over the past week except for jumbo sizes, which fell again. Despite the USDA reporting that egg-laying flocks are now 4.8% higher than last year, analysts still believe that HPAI concerns and seasonal demand increases should limit further downside.
Milk & Cream
Analysts expect large milk and cream supplies to continue, with the USDA confirming that fluid milk output jumped 2.2% year-over-year in July, and that U.S. herds remain in expansion mode. When combined with the strong butterfat content in the milk, butterfat output was even more impressive in July and is keeping plenty of cream available for churns. The abundance of butterfat this season has continued to remove supply concerns for the upcoming fall baking season; however, demand is still robust on any price declines, according to analysts.