All dairy pricing trends are based on USDA and CME data as of January 21, 2026.
Butter
The butter market rebounded last week, after declining for five consecutive weeks to five-year lows. The rally continued early this week, likely driven by short-term inventory builds and colder weather moving across the country, according to analysts – who note that the combination of lofty milk volumes, record milkfat levels, and increased bottling demand are keeping cream supplies readily available for churns. They also believe that weaker year-over-year U.S. butter values should help keep prices competitive in the export arena, while domestic demand will be the key in determining pricing levels.
Cheese
The CME block market rebounded from its five-year lows this week. Heavy milk flows continue to pressure the market, and cheese supplies remain adequate, if not abundant, according to analysts, who note that U.S. cheese prices remain low relative to global values, which should support strong sales further into Q1.
Shell Eggs
Urner Barry reported that all shell egg markets are up sharply this week. Demand is strengthening ahead of anticipated colder weather across the country, and seasonal flock rotations have resulted in constrained supply, according to analysts. Incidents of Highly Pathogenic Avian Influenza (HPAI) continue to spread, but with little impact to the commercial laying flock. The USDA is reporting 18 confirmed cases affecting commercial flocks over the last 30 days, impacting over 1.48M birds.
Milk & Cream
Domestic milk production remains strong, while record butterfat levels are helping to stretch that milk even further, according to analysts, who report that historically cheap feed costs and high demand for dairy calves to support the beef industry have helped dairy farmer profitability, thereby supporting herd expansion. The USDA reported that November fluid milk output was 4.5% higher year-over-year, and was the largest November output on record.
Commodity Trends at Your Fingertips: Dive into the Farmer's Report
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.