All dairy pricing trends are based on USDA and CME data as of February 25, 2026.
Butter
The recent strength in the butter market continued this past week, with sharply higher prices following the USDA’s announcement it would spend $148 million to buy dairy products to donate to food banks and other nutrition support programs, with butter accounting for almost half of this total spend. The updated Cold Storage Report from the USDA showed January stocks coming in below expectations, at 17% below last year, although cold storage inventories did increase 15% month-over-month, as this has historically been the time of year when inventories rise. The U.S. Dairy Export Council reported that December shipments rose 261% from last year. Strong milk volumes, record butterfat levels and increased bottling demand should keep cream supplies readily available for churns for the coming months, according to analysts.
Cheese
The CME block market rose for the third consecutive week, as renewed buying interest was strengthened by both strong export sales and the USDA’s announcement that it intends to purchase $42.5 million worth of cheese to distribute to food banks and other nutrition assistance programs, according to analysts–who believe that these supporting factors, combined with other restocking initiatives, will continue to limit any price declines.
Shell Eggs
Urner Barry reported that all shell egg markets were down again this week. Demand remains poor, and supply is becoming increasingly available across the country, according to analysts. Incidents of Highly Pathogenic Avian Influenza (HPAI) do continue to spread, however, especially in Pennsylvania over the last few weeks. The USDA is reporting 28 confirmed cases affecting commercial flocks over the last 30 days, impacting over 9.42M birds.
Milk & Cream
Domestic milk production and milk fat levels remain strong, January milk output jumped 3.2% year-over-year, and domestic dairy herds increased 14K head in January to 32-year highs, according to the USDA. Historically cheap feed costs and increased beef-on-dairy breeding revenue have helped dairy farmer profitability, keeping slaughter rates below average, according to analysts.
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.