Here’s what USDA/AMS had to say:

Midwest:

Milk supplies in the Central region are becoming more available this week. Contacts continue to report distribution challenges across the region as diesel prices remain elevated. Contacts also indicate corn silage quality issues persist in pockets of the Upper Midwest. Demand from Class I facilities for spot milk loads is easing. Spot milk loads are available throughout the Midwest, while contacts in the Southwest describe milk supplies as tight, with no spot loads available. Reported Class III spot milk prices in the Central region range from $1.00-under to $4.00-over Class. Cheese manufacturers report increasing demand for mozzarella and provolone, and inventories are beginning to tighten. Cheddar inventories remain ample, with spot loads readily available. Butter manufacturers report churns are operating steadily. Class II and Class IV demand remains steady. Inventories of 80 percent butterfat butter remain ample, while inventories of 82 percent butterfat butter are described as tight.

EAST

Milk supplies are heavy across the East. Temperatures are cooler. Class I demand is very good and ultrafiltration processors continue to pull milk. Class II demand is moderate for ice cream, but remains very good for yogurt production. Class III cheese production is ongoing. Cream cheese demand is good. Class IV butter production is steady and some plants are scheduling maintenance downtime. Class III condensed skim prices remain flat to $0.40 over Class III. Overall, the market tone is steady.

WEST

Milk in the Western region shifted to a more balanced tone this week, as fluid and cream supplies leveled out for manufacturers and producers. Production in the West remains seasonally steady and has yet to reflect the typical fall uptick cooler weather brings. California contacts report milk is beginning to tighten, and spot milk requests are emerging, though spot availability remains limited. The Mountain States experienced cooler weather as well, with a more balanced milk flow. No changes were reported in milk flows for the Pacific Northwest or Arizona/New Mexico, though some Arizona sources noted a decline in cream availability this week. Class I and II demand is stronger, while Class III and IV demand remains steady. Hauling costs continue to present challenges for handlers and manufacturers, with little relief expected.

Questions or concerns? Please contact EA Risk Insights at insights@ever.ag