Yet they also reported that others are asking whether current butter stocks are adequate for late summer and fall needs. The cheese price strength, while very modest, was surprising since extra loads of milk had to be processed over the weekend due to Monday s holiday. USDA reported that the Memorial Day weekend normally results in surplus loads of milk generated from fluid plants that shut down for a long weekend due to Monday s school closings. Weather may be playing a role here. Hot and humid weather across much of the South and Northeast may negatively impact future milk supplies.
Cows don t feel like eating much when it s hot and that results in less milk output.
USDA reports this week that milk production is declining in Southern states from Georgia to Texas. Hot temperatures in Arizona and New Mexico are resulting in less milk and lower component levels. Settlement prices for June 2 indicate very little change fro the week before. Finally, USDA reported the May 2000 class and component prices for all federal orders. Component prices are important since they show up on farmers milk checks and affect the calculation of class prices.