The Latest: February - 2026
Butter Futures Jumped This Week
Butter futures jumped this week on the heels of a bullish Cold Storage report. USDA pegged January 31 butter inventories at 215.4 million pounds, down 17.4% from the year before. Domestic butter demand was robust and exports were strong enough to offset the significant growth in U.S. butterfat output. More recently, though, USDA’s Dairy Market News reported that butter churns are running “seven days a week… at or near max capacity.” And manufacturers tell Dairy Market News they are “building inventories to prepare for upcoming slower production periods.”
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Over the past year, the dairy markets have exhibited extreme volatility, adjusting to drastic shifts in both supply and demand. Consumer behaviors are shifting back towards something that resembles pre-pandemic times.
View reportWith a sense of normalcy restored, and the spring flush rapidly approaching, milk is still plentiful and has resulted in copious dairy product production.
View reportMany plants are keeping busy schedules as they attempt to compensate for last week’s closures, while displaced spot loads of milk and cream continue to search for homes.
View reportThough it will take some time for the impacts of the weather to become fully appreciated, a reduction in milk production and increase in culling is likely in the coming weeks.
View reportInventories for most dairy products remain heavier than typical for this time of year. Nevertheless, the situation is evolving and tighter markets could be on the horizon.
View reportPrices fluctuate as new market information collides with the realities of supply and demand. Reports indicate that milk production continues to exceed prior year levels and is growing seasonally as spring approaches.
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