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. Supplies are as heavy as year earlier levels. Butter demand is good, Cream supplies are tight. The Chicago Mercantile Exchange cash butter price is going higher. In the north central states, milk supplies are not as heavy as year ago levels, but further south, milk supplies are gaining stronger momentum.