Dairy Markets See Lower Butter And Cheese Prices

Disease risks remain a key factor to watch heading into fall.

butter Cristen Clark_FarmHER S1_Ep 11

FarmHER Cristen Clark (Season 1, Episode 11)

FarmHER, Inc.

NASHVILLE, Tenn. (RFD-TV)— U.S. dairy markets are under pressure as butter and cheese prices both declined this week, according to USDA and CME data.

Butter fell to its lowest level since November 2021 on sharply higher supply, while cheese markets also slid, with analysts noting exports remain competitive, but any further weakness could spur renewed domestic demand.

Shell egg prices held steady in most regions, though West Coast markets eased slightly. Supplies have improved, but seasonal demand and rising Highly Pathogenic Avian Influenza (HPAI) cases — eight confirmed by USDA in the past 30 days — are keeping markets firm.

Meanwhile, U.S. milk production remains strong, with July output up 3.4 percent year-over-year, the largest gain since May 2021, supported by high butterfat levels.

Tony’s Farm-Level Takeaway: Farmers face lower returns on butter and cheese, but strong milk production and steady egg demand help balance the market. Disease risks remain a key factor to watch heading into fall.
Related Stories
Strong yields and higher cattle prices helped stabilize conditions, but weak crop prices and rising carryover debt remain major challenges for Eleventh District farmers.
Corn exports remain strong, while soybeans and wheat shift week to week on river conditions and global demand.
The National Milk Producers Federation will launch a new advocacy campaign to secure a final vote, urging House lawmakers to approve the bill as soon as they return from the Thanksgiving recess.
Texas Ag Commissioner Sid Miller warns horse owners after EHV-1 cases linked to the Waco WPRA Finals. Horses linked to recent Waco events should be isolated and closely monitored, as early action is critical to stopping the spread of EHV-1.
Shaun Haney, host of RealAg Radio, provides the latest insight into the timing, expectations, and broader considerations of the potential aid package, despite increasing exports to China.
Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
WTO gauges point to agricultural raw materials trade growing more slowly than overall goods, reinforcing the need to manage export risk and monitor policy shifts closely.
Kip Eideberg with the Association of Equipment Manufacturers details its campaign spotlighting the people who build equipment vital to farming and food manufacturing.
Buzzard discusses her upcoming appearance on the Dirt Diaries podcast with host Kirbe Schnoor and the importance of sharing authentic stories about agriculture.
Dr. Jeffrey Gold, President of the University of Nebraska, joined us to break down what telehealth entails and which conditions can be managed through remote appointments.
Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.