# Supply Could Overwhelm Demand in Early 2026 - Dairy Herd

> U.S. butterfat output through November hit a record, with butter production up 6.9% in the first ten months of the year. Butter prices fell more than $1/lb from a July peak of $2.62 to a late-December low of $1.385/lb. New cheese plants in the Central Plains pushed regional output to record levels.

- Date: 2026-01-20 · published 2026-01-20T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/21065-supply-could-overwhelm-demand-in-early-2026-dairy-herd
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Record milkfat and cheese output with new processing capacity sustains heavy supply, keeping dairy prices low into the first half of 2026.

## Read by commodity

- MILK: bearish ▼

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/supply-could-overwhelm-demand-early-2026

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.