Milk supplies available for cheese manufacturing have increased and cheese plants are working additional hours to accommodate the increased volumes Midwest farm milk production is increasing steadily, and California milk production is slowly building.

Class I demand continues to be very strong in the Northeast and Mid-Atlantic regions, limiting manufacturing milk supplies. California milk output trends continue to indicate steady to slightly higher gains. Processing plants are running at manageable levels and no issues are expected over the Thanksgiving holiday period. Conditions have been ideal for milk production across Arizona and total output is increasing on a weekly basis. 

Strong Class I demand in the East has reduced manufacturing milk supplies. Along with reduced milk production levels this has increased demand for milk and components from other parts of the country. Florida milk production is nearing seasonal lows and imports totaled 96 loads this week.
 

The most advertised cheese category, 8 ounce shredded, has a weighted average advertised price of $2.19, a 6.8% price decrease from last cycle. The average price for 8 ounce blocks, $2.20, is a 5.2% price decrease from the last cycle. 

Butter pricing is firming this week, cheese production nationally remains heavy, Northeast milk production is widely believed to have reached a plateau, and California milk output is mostly steady and remains at or near the seasonal peak, reports the USDA this week.

Cheese production levels remain high  but  milk production in the Northeast and Mid- Atlantic regions has leveled off,  according to today's Dairy Market News, published by the U.S. Department of Agriculture.