Here’s what USDA/AMS had to say:
Midwest:
In the Central region, milk output is steady to higher, as warm temperatures and nice weather are contributing to increased cow comfort. Contacts say there is plenty of milk available in the region. Demand for Class I milk is increasing as educational institutions have returned from spring break. Demand for Classes II and IV is strong, while Class III milk sales are steady. Spot Class III milk prices range from $8-under to $2-under Class this week. Contacts say spot loads are available, and some plant managers are offering volumes at below Class prices, due to planned down time. Some cheesemakers are not actively purchasing spot volumes of milk and say they are running 7 days a week to work through milk available from within their networks.
EAST
Milk production in the East region is seasonally strong. The northern states are seeing the start of spring flush while the southern states are well into the flush. Bottling demand in the region is steady with most bottlers taking in contracted volumes of milk. Class II demand is steady to strong this week. Ice cream manufacturers continue to ramp up operations in preparation for summer demand. Many manufacturers are purchasing spot volumes of cream to supplement contracted volumes. Class III demand is steady this week. Class III production is somewhat down this week in the Northeast with several facilities experiencing unscheduled downtime, causing milk to get diverted to balancing plants and other manufacturers. Class IV demand is strong. Milk powder demand is strong.
WEST
Milk production in California is steady. Handlers indicate year over year production continues to be up. Central Valley manufacturers indicate plenty of milk is available and milk output is manageable. Spot loads are available. Farm level milk output in Arizona is steady. Some manufacturers continue to bring in spot milk loads to run busier production schedules. Milk production in New Mexico is steady. Milk production in the Pacific Northwest is steady and is providing plant managers with contracted volumes. However, some manufacturers have open processing capacities and are bringing in spot milk loads. Farm level milk output in the Mountain States of Idaho, Utah, and Colorado varies from steady to stronger. Spot milk loads are tighter with some manufacturers coming off some downtime. However, stakeholders indicate milk volumes are sufficiently meeting manufacturer’s needs. Class I demand is steady, while Class II, III, IV demands vary from steady to stronger throughout the region.
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