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. Still there is real concern that milk supplies in the central states will be tight. Futures prices still seem to indicate some uncertainty at this point among traders about long term prospects.