All dairy pricing trends are based on USDA and CME data as of July 29, 2026.
Butter
The domestic butter market moved lower last week on robust trading activity. While summer heat has raised concerns about potential declines in milk production, sustained price rallies appear unlikely in the near term, according to analysts, who note that butter churns continue to operate at or near capacity, supported by strong milk output and readily available cream supplies, resulting in more aggressive pricing by manufacturers to stimulate demand and move inventories. However, the USDA reported that June butter inventories in cold storage were 6.6% below year-ago levels which, along with the industry entering the seasonal inventory drawdown period, should help to establish a floor under prices.
Cheese
Blocks fell over the past week. While the warm weather across the country has increased cow stress and is limiting spot availability for milk nearby, the recent run-up in prices is limiting new order interest domestically and abroad, according to analysts.
Shell Eggs
Urner Barry reported that shell eggs across all sizes and geographies were up again over the past week, although West Coast markets had flattened out at the beginning of this week. Ongoing flock rotations, increased heat stress and strong export demand to Asia and Mexico have helped limit the excessive amounts of eggs seen in May and June, according to analysts. Highly Pathogenic Avian Influenza (HPAI) in commercial flocks remains muted, with two commercial flocks and 1.49M birds impacted over the last 30 days.
Milk & Cream
Analysts expect large milk and cream supplies to continue, with the USDA confirming that fluid milk output jumped 2.3% year-over-year in June, 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 June, 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.