The National Milk Producers Federation and Dairy Management Inc. have released the October Dairy Market Report. This month the report states that the outlook for milk prices remains mostly positive.

Milk production continues to grow modestly, but exports continue to lag. Despite recent high to very high inventory levels, prices for butter and cheese have been relatively strong, while nonfat dry milk prices have been recovering from depressed levels. Dry whey prices, however, remain under pressure. The report says the Margin Protection Program will make a payment for July-August of approximately 30.5 cents per hundredweight at the maximum $8-per-hundredweight margin level, subject to sequestration. U.S. milk production continues to grow at a modest rate, as relatively strong growth in the Upper Midwest is largely balanced by declines in the West and Southwest.