Prices reflect rainy weather keeping farmers out of the fields. However exports are dismal, which should help US livestock interests, but stocks are down. Good weather in South America is favorable to a good harvest, keeping world prices down.
European processors are concerned with foot and mouth disease.
Manufactured product production is low. European milk production is expected to be lower this year. In the US, milk supplies are increasing in the Northeast but total supply is behind year earlier levels. Schools are in recess and it freed up milk for manufacturing. In the Central part of the US, milk supplies are adequate and manufacturing demand is good.