Most folks ask when will milk prices start to show real price strength. That depends almost entirely on demand for dairy products in the weeks ahead.
Cheese prices are steady to weak due to relatively high inventory levels and lack luster demand.
Prices are likely to rise once we are past the spring flush and demand for processed cheese picks up. Production fell April through September. At the same time, demand for dairy products was strong. Consumption of cheese and fluid milk products looked promising. The BFP, the mover of most federal order prices, resulted in historic gains in farm-gate milk prices.