The USDA’s Dairy Market News finds that dairy processing plants are busy manufacturing butter, cheese and fluid milk.

Butter prices are weaker as some international markets converge to U.S. prices. Improved milk supplies are helping cheese plants to increase production, while milk production varies throughout the states, reports the USDA’s Dairy Market News.

Milk handling over the holiday weekend went along planned schedules with processing plants on active duty with auxiliary plants being brought into action. Cheese production levels across the country were mixed this week. Production in the Midwest remains strong as larger milk supplies and good component levels add to inventories.

Cheese prices firmed again this week despite the increased production. NFL football playoffs are expected to increase demand in the short term as fans gather for parties. In fluid milk, transportation issues were not uncommon as trucks were backed up and used for storage

In this week's Dairy Market News, the USDA reports cheese market price gyrations are creating more uncertainty, a tightening of milk supplies in the East, and firming butter prices. Foodservice orders are at good levels as restaurants prepare for the summer vacation season.