Here’s what USDA/AMS had to say:

Midwest:

Milk supplies in the Central region remain tight this week, with handlers continuing to report limited to no excess milk available for spot purchasing. Industry stakeholders cite ongoing distribution challenges, influenced in part by elevated diesel costs across much of the United States. Some manufacturers also express concern over poor corn silage conditions, which may contribute to supply-side pressures. Spot milk trades were limited again this week. Reported Class III spot pricing in the Central region ranged from flat-class to $2.00-over. Cheese manufacturers report steady production schedules. While cheddar sales are described as slow, with inventories trending long, mozzarella demand remains firm and availability is tighter.

EAST

Milk production in the East is stable. Overnight temperatures are now seasonally cooler, with no increase in output reported. Class I ultrafiltration pulls remain strong. Class II demand for condensed skim remains elevated. Class III manufacturing is steady, with milk sufficient for production. Butter churns are running six days per week for own-branded and private label production. Overall, the market tone is steady.

WEST

Farm-level milk output in the West is reported as steady, with only minimal increases over last month’s volumes. In California, milk availability has loosened due to unplanned downtime at several plants, diverging from the rest of the Western region, where milk supplies remain tight. The Pacific Northwest and Mountain States report tight milk availability is pushing manufacturers to seek spot purchases to meet production needs, but they are finding very little milk available. The Southwest reports no change this week in milk volumes or demand. Class I demand is increasing and continues to grow progressively week over week. Class II demand is also up with pressure from some facility improvements that have taken place in the Western Region. Class III and Class IV demand remain stable. Transportation costs for all fluid milk have increased measurably week over week, with haulers reporting losses due to contracted rates no longer covering actual hauling costs.

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