# Too Much Fat, Not Enough Protein: US Dairy Markets Diverge As Butter And Cheese Face Surplus Pressure

> US butter prices have fallen about 29% and cheese about 14% as expanding herd numbers and milk output build inventories of milkfat products. Meanwhile nonfat dry milk and dry whey have rallied on strong demand for protein. USDA data showed the dairy herd at 9.72 million head in Q3 2026, up 172,000 head year-on-year, with milk production in 24 major states up 2.7%.

- Date: 2026-11-04 · published 2026-11-04T15:15:22.820Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/80016-too-much-fat-not-enough-protein-us-dairy-markets-diverge-as-butter-and-cheese
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Surplus butter and cheese weigh on milk component values and Class III-type pricing, while firm NDM and whey support protein-based feed ingredient costs. The split suggests dairy byproduct feed values will diverge by component.

## Read by commodity

- MILK: bearish ▼

## Sources

- en.edairynews.com: https://en.edairynews.com/too-much-fat-not-enough-protein-us-dairy-markets-diverge-as-butter-and-cheese-face-surplus-pressure/

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