All dairy pricing trends are based on USDA and CME data as of May 6, 2026.
Butter
The butter market fell slightly over the past week. Elevated milk output year-to-date has led to butter churns running at capacity, with the USDA confirming February output rose 9.1% year-over-year, setting a record for the month. Recent export data shows that the U.S. exported 22.3 million pounds of butter in February, the fifth-highest total for the month and almost double the amount exported last year. Analysts believe that export demand will likely face headwinds, due to elevated freight costs and growing inflation risk. However, the cheaper prices earlier this year did support better domestic and global demand, keeping U.S. inventories limited. Updated cold storage inventories showed March stocks increasing by 33 million pounds, the largest February-to-March build since 1991, but total stocks still trail prior-year levels by 11%. Analysts believe that inventories should continue to improve, as this is the seasonal build time of year, and producers are running strong to take advantage of increased cream supplies coming to market.
Cheese
The CME block market was steady over the past week, as strong domestic and export demand is balanced by strong cheese production, according to analysts.
Shell Eggs
Urner Barry reported that nearly all shell egg markets were down slightly over the past week, due to soft demand and long supply. Jumbo size was the lone exception, with market prices up across all geographies, due to tightness in supply caused by seasonal flock rotations, according to analysts. Highly Pathogenic Avian Influenza (HPAI) in commercial flocks remains muted, with the USDA reporting 7 flocks and 460K birds impacted over the last 30 days.
Milk & Cream
Domestic milk production remains strong, and milk component levels have increased. Butterfat content remains at record levels; March milk output rose 2.3% year-over-year; and domestic dairy herds increased 8K head in March to 32-year highs, according to the USDA. Historically, cheap feed costs and increased beef-on-dairy breeding revenue have helped dairy farmer profitability, keeping slaughter rates below average, according to analysts.