Do not expect the de-coupling of the U.S. and international prices to continue forever. One day we will realize that U.S. prices are too high to remain competitive on the world stage. When that happens, expect more downward price corrections.

Milk production has slowed across much of the country. The combination of hot weather and typical seasonal declines is slowing availability of manufacturing milk.

Butter operators churned at mostly steady rates. Cheese production is mostly steady this week with many plants operating full schedules. As for milk, the USDA says production is steady to higher in the Midwest, steady in the Northeast and Pacific Northwest, and steady to declining in California.

Cheese production is steady to increasing across most of the country and manufacturing milk supplies heading into the Memorial Day holiday weekend are heavy, reports Dairy Market News this week.

Milk production is showing increases throughout the East with greening forage, improved cow comfort, and cow and heifer calving. Production volumes in the Southeast and Mid-Atlantic are increasing. 

Organic producers in Northern New England, Maine and much of Wisconsin are not able to graze cows for pasture feeding yet, due to weather not warming nor pastures drying as fast as is desirable.

Milk available for cheese making is tightening seasonally across much of the country. Limited spot milk loads for cheese production are available at premiums above Class. Cheese plants that want to run at highest efficiencies are looking for milk or additional solids to bolster production.

Hot, humid weather conditions have accelerated milk production declines in Florida, Arizona and the Midwest. Manufacturing milk supplies have declined across most of the nation; due to milk production declines and Class I demand increases. 

The USDA's Dairy Market News reports that that Process cheese sales are “strong” while Natural cheese sales are “off a little” in the Midwest. Overall, most manufacturers are “comfortable” with the current cheesemaking situation.