California farm milk production has been stable this week. Milk component levels, protein and butterfat, are at the highest levels. Manufacturers have plenty of milk for processing needs. During this shortened holiday week, milk shipments into Class I and Class II are slightly down.
In Arizona, milk production is constant. Handlers do not have any issue with milk distribution. Requests from bottlers are lower, but are expected to increase in the upcoming week. Some processors had to temporarily stop taking out-of-state milk to focus on helping other in-state processors with milk balancing. Bottling demand is steady.
In New Mexico, farm milk production is up, in line with favorable weather outcomes. With some manufacturing plants completing repair and maintenance work, milk holdovers are higher than usual, keeping balancing plants busy with excess milk clearing. Class I orders are steady this week.
Milk production in the Pacific Northwest is steady to growing incrementally. Industry contacts note a strong pull from Class II manufacturers. While not the largest portion of milk use, when coupled with the steady pull from other milk processing and producer base programs, it creates an environment in which milk intakes are well balanced with processing needs. Milk going into the bottle is steady.
Strong milk production has been maintained in the mountain states of Idaho, Utah, and Colorado. Favorable winter weather has provided comfortable conditions for the milking herd. Manufacturers have no issues getting the milk needed for processing needs. Discounted milk loads are still common in Idaho at $4.50 under Class IV.
With western ice cream manufacturing and some Class II dairy seasonal products decreasing, condensed skim milk and cream spot sales are steady to down. Most condensed skim loads are clearing through the dryers. Cream multiples for all Classes are mixed this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.1800
