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 corn exports are anchoring U.S. trade, while soybean sales remain steady, but shipments lag.
Beal joined us on Friday’s Market Day Report to discuss her election to NASDA’s presidency, challenges facing American agriculture, and her background as a Mainer and dairy farmer.
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
Lower inventories and cautious farrowing plans suggest tighter hog supplies into 2026, keeping producer margins sensitive to demand trends and health risks.
Secretary Rollins’ plan targets high costs, labor challenges, and export growth, delivering relief at home while building markets abroad.
Transportation challenges are mounting as droughts lower Mississippi River levels and push freight rates higher.

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:

Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
Sen. Deb Fischer reintroduces the HAULS Act to update hours-of-service exemptions and definitions affecting livestock and agricultural haulers. She joins us on Market Day Report to share more about her proposed legislation.
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.