Farm milk production is California is generally stable this week. Industry contacts suggest milk intakes are in good balance with processing needs. Bottled milk demand is starting to slow down as schools prepare to close for the winter break. Therefore, more milk has been moving toward Class III manufacturing plants, with some of them operating close to full capacities.
With lower daytime temperatures and longer nights, cow's milk production is slowly increasing in Arizona. Some processors are bracing for next week's anticipated spike in balancing and churning activity. Out-of-state milk extraction has declined, and handlers are filling their customers' orders primarily with milk from state farmers. Class I and II sales are stable to declining.
Farm milk outputs are on the rise as cows respond favorably to cooler weather in New Mexico. Balancing needs have increased due to downtimes at a few Class III producing plants. Nevertheless, all milk loads were redirected appropriately to meet other processing needs aside from cheese. Shipments into Class I are trending lower as schools prepare to close. Class II requests are slightly up.
Pacific Northwest milk production is steady. Milk intakes are in good balance with processing needs. While milk handlers have not had any issues getting milk to where it is needed, they do expect to make more adjustments next week for the holidays. Retail fluid milk bottling is steady to higher.
Idaho, Utah, and Colorado milk production is strong. Manufacturers have plenty of milk for processing. A few loads are available at a $4 under Class IV discount. Milk handlers are trying to get ahead of the annual holiday milk load juggling. Some contacts anticipate a few challenges to find homes for all of the milk.
Across the West, condensed skim demand is generally unchanged from the previous week. Cream sales in the West are stable to a bit down ahead of the holiday. Plant managers are expecting a seasonal upsurge in cream availability come next week. This week, cream multiples are unchanged from last week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.2400
