The following excerpts are from the USDA's Dairy Market News for the week of Aug. 26 to 30. Download the complete report here.

FLUID MILK: Milk production is declining in most regions of the nation with the exception of California and the Northeast, which are seeing mostly steady production from week to week. 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.

Cream prices are gyrating ahead of the holiday. More offerings are being noted over the weekend with cream cheese manufacturers showing the greatest demand for cream.

DRY PRODUCTS: Nonfat dry milk prices continue to move higher in a firm market. Lower milk volumes and lower milk components have reduced manufactured volumes of nonfat dry milk. Demand is mixed with substantial volumes of NDM and SMP moving through export, while domestic interest is light. Dry buttermilk prices moved slightly higher as supplies remain tight and held in firm hands. Production levels are uneven with expectations of increased production through the holiday period. Demand is fair to good for current offerings.

Dry whole milk prices are steady. Some manufacturers are looking to increase production, prompted by improved international demand. Dry whey prices are uneven. The market has remained in a sideways range for a few weeks with only slight movements up or down. Production is trending lower with current supplies sufficient to cover demand. Whey protein concentrate 34% prices are steady to higher this week. Production has declined as less fluid volumes are making their way into the whey stream. Supplies are farly tight with some manufacturers sold out till the end of the year. Lactose prices are higher. Production is declining along the seasonal trend and supplies are tightening.