Farm milk output has been steadily increasing in California and milk supplies are more than adequate to satisfy manufacturing needs. Handlers are filling their customers' needs as scheduled. Discounted milk loads are common and getting pushed into the surrounding regions. Some Class II and Class IV processing plants are running close to full capacities. This week, milk shipments into Class I and Class II sales are steady.
At the farm level, milk production in Arizona is up, following seasonal patterns for this time of the year. Cooler temperatures and longer nights for dairy cows to rest are conducive to increased milk productivity. Plant managers report busy processing schedules. Some processors are helping with out-of-state milk balancing whenever they have room to help. Class I and Class II sales are mostly steady.
In New Mexico, farm milk production is steady to higher and holdovers remain elevated. Favorable weather is aiding cow comfort. Due to some repair and maintenance projects is some processing plants, balancing needs have risen within the state. In some instances, some milk volumes have been redirected to processing facilities that have extra room. Sales into Class I, II and III have declined this week.
While milk production in the Pacific Northwest is seasonally growing, December year over year milk production in Oregon and Washington has declined according to the NASS Milk Production Report. Manufacturers say they still have plenty of milk for processing needs. Demand for fluid milk bottling and Class II uses are pulling steady volumes and keeping milk intakes in good balance with processing needs.
December year over year milk production in the mountain states of Idaho and Colorado is strong and growing according to the NASS Milk Production Report. Both Colorado and Idaho have more cows than they did one year ago. Utah milk production declined from December of last year. Industry contacts suggest there is abundant milk within the region, able to fill most processing needs. Milk handlers are working hard finding homes for available milk, sometimes having to ship some milk around the region or into neighboring states at discounts of $4.50 under Class IV.
Condensed skim supplies are readily available for drying. Demands are flat. Western cream sales are unchanged from a week ago. Cream is accessible to all buyers and continues to trade close to flat market prices in some area. Cream churning is active. This week, cream multiples for all Classes are steady.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.1800
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