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
U.S. pork production is rising slightly, driven by steady domestic demand, prices, and expanding global meat export markets beyond China.
A prolonged Iran ceasefire offers limited relief as fertilizer concerns persist, prompting U.S. policy shifts and driving farmers to reconsider crop acreage.
Strong corn exports support demand while soybeans lag.
Strong exports and prices are helping offset rising milk supplies.
Strong demand for U.S. beef in Mexico is boosting exports, with buyers seeking both variety meats and high-quality cuts like Prime and Choice ribeye.
Rep. Dusty Johnson of South Dakota joined us to discuss rising input costs, proposed fertilizer legislation, and potential support for farmers navigating tight margins.

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:

The Supreme Court’s ruling could affect pesticide warning claims well beyond Roundup. Richard Gupton with the Ag Retailers Association joins us to explain the importance of federal pesticide labeling standards and discuss the potential impact on the ag industry and supply chain.
Rural population growth supports long-term stability of the ag workforce.
Farm Credit’s Christy Seyfert joined us to discuss the ag industry’s push for swift Farm Bill action as it heads toward a House vote.
Bridge payments are helping, but many producers still face losses and tight margins. AEM’s Curt Blades joins us to discuss how the current farm economy is pressuring equipment demand.
Feed demand and premiums drive growth for the crop
Purdue economist Dr. Joana Colussi discussed the U.S. and Brazil’s reliance on imported fertilizers and their impact on global food security amid rising input costs.