Thirteen of the 20 reporting states had less milk per cow. Some states have also experienced rather major declines in milk cow numbers. Fourteen of the 20 reporting states had less milk cows than a year ago. The low milk prices of the previous months has encouraged exiting from dairying and has slowed dairy expansions, both of which contribute to reduced cow numbers. Less milk means less production of dairy products.
Commercial sales remain strong despite some weakening of the economy.
Strong sales and less production mean lower stocks. These are strong product prices for this time of the year. There appears to be a little resistance developing from end use buyers for both butter and cheese prices at these levels. There are reports that butter imports are replacing some of the domestic butter. But nevertheless, these prices have been holding.