CREAM MULTIPLES
WEST
Here’s what USDA/AMS had to say:
Cream demand in the region is growing. Cream multiples increased at both ends of the range this week. Butter churns are receiving contracted volumes of cream as Class II facilities are taking the majority of spot cream.
CENTRAL
Here’s what USDA/AMS had to say:
Milk component levels remain down from the start of the month, though some contacts report a slight uptick in cream production compared to last week. Demand for cream is strong from Class II processors, who are buying most of spot cream on the market. Butter makers report steady demand for cream, as some are searching for spot loads to maintain full production schedules. Downtime at a large milk processor, that was unable to produce and sell cream led to higher multiples in recent weeks. Stakeholders say this processor is running this week and are moving more cream to the market, pushing multiples down slightly.
NORTHEAST
Here’s what USDA/AMS had to say:
Downtime at other facilities continued to redirect additional volumes into active operations, supporting steady regional movement and contributing to high cream supplies. Class II users were active, absorbing available cream throughout the week, as July is a peak month for ice cream production. Cream conditions remain stable this week. However, on market activity, the upper end of Class II cream multiples softened moderately week-over-week, declining nearly 10%, while the lower end price remained unchanged.
