Milk supplies tighten
Cheese prices rebounded a little on Thursday in reaction to reports milk supplies have tightened-up after the three-day holiday weekend to the point cheese factories are running at less-than-desired levels. Dairy Market News says milk production in the Central Region has peaked and is trending lower. Soft serve and ice cream demand is good, cultured product demand is very good and cream supplies are tight. Class II cream multiples range from $1.27 to $1.40. Some butter makers are finding it more profitable to sell the cream than make the butter. Processors are also limiting volumes going into nonfat dry milk as strong condensed sales are pulling supplies.
Milk production is declining more rapidly in the Northeast and the Southeast. Florida exported 48 loads this week compared to 130 last week. Class II cream multiples in the South are $1.33 to $1.44 thanks to strong demand for ice cream.
Out West, California production is declining in some areas but increasing in others where the weather has become more favorable. Cooler temperatures have also resulted in a little rebound in production in New Mexico but Arizona is declining under the summer heat. Production is holding steady in the Pacific Northwest.
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