Here’s what USDA/AMS had to say:
Midwest:
In the Central region, milk production is trending higher in the Midwest but is steady to lighter in the Southwest. Contacts in the Midwest say high temperatures earlier in July negatively impacted cow comfort and milk output, but more recent cooler temperatures have caused output to rebound somewhat this week. In the Southwest, summer heat continues to negatively impact milk production. Demand for Class I milk is picking up as some parts of the Central region are preparing for the start of the school year. Contacts anticipate demand to continue to pick up throughout August and into September, as some schools will not return from summer break until after Labor Day. Stakeholders report strong demand for Classes II and IV. Class III demand is steady, though cheesemakers say spot loads are hard to find. Spot prices for Class III milk range from $1-over to $5-over Class. Some cheesemakers say they are using additional milk coming from farms within their network to increase production schedules, and they are not currently selling spot milk. 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.
EAST
Milk supplies remained heavy this week. 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. Class III activity was steady, reflecting consistent utilization. Production and demand from Class IV operations were unchanged in recent weeks, with churns continuing to build inventory for the back quarter of the year. Class II values eased notably compared to last week, primarily driven by a lower Class II Nonfat Solids Price. As a result, an adjustment downward to the reported range was warranted. Class III values held steady at the lower end, but declined moderately at the upper end, reflecting lower reported trade prices. Overall, fluid and cream markets maintained a steady tone, supported by heavy milk availability, ample cream supplies, and consistent activity across Class II, Class III, and Class IV operations
WEST
Milk production in the West region is seasonally low, but several areas note a recent increase in farm milk output after some recent hot weather. The Central Valley of California milk volumes are down in July compared to June of this year, but year over year production is higher than 2025. Some contacts in California are concerned with scheduling downtime for regular maintenance with milk volumes this high. Arizona and New Mexico milk production is steady with no noted changes to volumes. The Pacific Northwest has no notable changes in milk production. The mountain states of Idaho, Utah and Colorado have seasonally steady milk production. Contacts indicate multiples could continue to rise if demand doesn’t change. Demand for Class I milk is growing in some areas as schools prepare for the fall semester. Class II – IV demand remains unchanged in the region.
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