California milk production is following seasonal patterns. Milk output is strong and flowing ahead of the production levels from last year. Dairy processors are at capacity and unable to take on much more available milk. Disruptions to the milkshed create a wave of distressed milk that milk handlers often need to push to calf ranches. The winter storm from last week clogged transportation and caused milk to back up in the Central Valley. Industry contacts say heavy rain, mud slides and snow delayed milk haulers. Some farms had to dump milk while they waited for trucks to come and make the pickup. Class I and Class II sales are steady.
Milk production in Arizona is steady to higher. Warm days and cool nights are almost ideal for cow comfort. Manufacturers say milk intakes are well-balanced within the region and they are not taking in much milk from the surrounding regions. Class I and Class II demand is stable.
In New Mexico, milk production is following seasonal patterns, moving up slightly as the temperatures warm. Milk handlers expect holdovers and balancing needs to rise over the next few weeks.
Pacific Northwest milk production is steady to growing, however production over base programs are keeping supplies in check. Milk intakes are well-balanced with processing needs. Class I sales are solid. Retail demand for fluid milk has remained strong and the government food box program has been supportive of dairy markets. Contacts suggest Class II sales have eased back over the last few weeks.
In the mountain states of Idaho, Utah and Colorado, milk production remains strong. Manufacturers are not having any trouble getting the milk needed for processing. Available spot loads of milk are consistently available at $4 to $5 under Class IV. However, industry contacts do not think much, if any, milk has had to be diverted to calf ranches the last few weeks.
There is plenty of condensed skim milk available for drying. Demand from processors is flat.
Western cream sales are a bit flat. Butter makers are taking healthy volumes of cream and ice cream manufacturers are starting to increase their activities. Inexpensive cream is still available at low multiples. A few cream purveyors are pushing for higher multiples. But so far, Class II processors have not needed to jump on board and those with the cream are choosing to use the cream themselves.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.1800
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