All dairy pricing trends are based on USDA and CME data as of October 21, 2026.
Butter
The domestic butter market rebounded this past week, as renewed order interest helped support prices off their lowest levels since February 2021. With prices still at historic lows, greater order interest is expected to materialize, due to lower year-over-year prices and the coming build for the holiday and baking seasons, according to analysts, who note that improved farmer margins due to elevated milk pricing, and premiums for calves to support the beef industry, should continue to result in record milk and cream production throughout the U.S. The most recent consumption data from the USDA showed domestic demand up only 0.1% year-over-year in August, and up 3.4% from January to August, which stresses the importance of export demand.
Cheese
Blocks continued to rise sharply over the past week, supported by strong near-term purchasing activity. Market fundamentals remain largely unchanged, however, as ample milk availability and robust cheese production continue to contribute to abundant supplies, according to analysts.
Shell Eggs
According to Urner Barry, prices for large, extra-large and jumbo shell eggs declined over the past week, as aging flocks across the country have resulted In an increased availability of larger-sized eggs. Meanwhile, prices for mediums were mixed – down in non-West Coast markets, while turning higher in West Coast markets. Despite recent softness, analysts expect these markets to remain supported through year's end due to heightened concerns surrounding HPAI and typical seasonal demand patterns. HPAI continues to spread, with the USDA's Animal and Plant Health Inspection Service reporting eight commercial flocks and 1.18M birds impacted over the last 30 days.
Milk & Cream
Analysts expect the trend of large milk and cream supplies to continue, with the USDA confirming that fluid milk output jumped 1.7% year-over-year in August, and that the size of the U.S. dairy herd remains at 33-year highs. On top of that, milkfat tests continue to outperform those of recent years, resulting in even more fat coming into the market. The abundance of butterfat this season has continued to remove supply concerns for the upcoming fall baking season, although demand is still strong, according to analysts, who believe that with milk and cream availability improving modestly this past week, upside risk should remain muted.
The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.