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
Ethanol markets remain mixed — weaker production and blend rates are being partially balanced by stronger exports as winter demand patterns take shape.
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
USMEF’s Jay Theiler discusses his leadership role in representing U.S. beef and pork and provides an update on this week’s conference in Indianapolis.
The Dairy Checkoff’s new approach to consumer marketing helps farmers bridge the gap between physical vs. digital touchpoints and deliver more end sales.
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
U.S. Trade officials announced new deals with El Salvador, Guatemala, Ecuador, and Argentina, as well as a steep reduction in tariffs on Swiss imports.
China’s cost advantage with Brazilian soybeans and vague public messaging leave U.S. export prospects uncertain heading into winter.
Expanded aerial capacity strengthens the U.S.–Mexico buffer against screwworm, providing cattle producers with stronger protection heading into winter and reducing risk to herds along the southern tier.

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:

A leading Oklahoma veterinarian explains common symptoms of Equine Herpes Virus (EHV) and warns owners to remain vigilant because it can spread quickly among horses.
National FFA President Trey Myers joins Monday’s FFA Today to share his hopes and goals for the 2025-2026 year as he steps into this opportunity to lead and serve the next generation of agriculture.
Watch the special this Saturday at 6:00 PM Eastern on RFD-TV
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.
Fair market value shapes taxes, transitions, lending, and sales, making accurate valuation essential for long-term planning.
SDRP Stage 2 now helps producers recover shallow, uninsured losses from major 2023–2024 disasters, with streamlined sign-ups open through April 30.