All dairy pricing trends are based on USDA and CME data as of August 5, 2026.
Butter
The domestic butter market was under pressure early last week before end users stepped back in, resulting in a slight gain. 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 slightly over the past week, as supply continues to outpace demand, according to analysts.
Shell Eggs
Urner Barry reported that large and extra-large shell eggs have started to turn lower, with mediums remaining a good value when compared to their larger counterparts. Supplies remain adequate with demand wavering between fair and fairly good, 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.