Indications are that milk production in August will be 5 or more percent lower than last year. The fluid cream markets are unsettled. The general sentiment among butter makers is to sell as much cream as possible at the current favorable pricing. Buyers within and outside of the region are absorbing the offerings, but multiples are often not as strong as in recent weeks. California butter producers will likely sell cream until October 1st, when the fat component in the state formula will make cream too expensive for many buyers.
Tanker trucks continue to be hard to find.
Trucking rates were fluctuating this week when uncertainty over fuel costs were unclear and trucking firms wanted to cover their potential costs. Those concerns have mostly eased. In the Northwest, milk production patterns have changed little. Some locations are starting to see milk output grow, some are holding steady, while yet others are still seeing slight declines. This is common across the various climates in this area.