Published on September 8, 2026
Key Drivers:
The industry added almost four million new layers in August to build capacity for fall demand, leaving markets oversupplied.
Wholesale egg prices have eased back below $1/dozen as larger volumes become increasingly difficult to move.
High production levels are expected to continue through the month.
Outlook: Large production could keep a lid on prices as we move through September.
Key Drivers:
Milk production is running 2% higher, boosting cream supply; year-to-date butter output has increased by 6%.
Domestic consumption is only 3% higher, making export growth critical to prevent inventory buildup in freezers.
European butter prices remain cheaper than usual, which places a ceiling on U.S. export pricing.
Outlook: U.S. butter prices may need to remain low to keep exports moving and remain competitive with European markets.
Key Drivers:
Newly-built plants are profitably converting abundant milk supplies despite generally low cheese prices.
Robust export activity has successfully prevented freezer inventories from building up.
Low prices remain the primary factor in keeping supplies moving to offshore markets.
Outlook: Cheese prices have not topped $1.70 so far this year, and futures suggest they won’t for the balance of 2026.
This comprehensive research empowers you to make informed business decisions. The information contained in this monthly market update is for informational purposes only. It represents our best estimates of commodity market conditions and is subject to change without notice. While we strive to provide accurate information, Gordon Food Service cannot guarantee the completeness or accuracy of the content. Any reliance you place on this information is strictly at your own risk.
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