Milk production is strong in California. Industry contacts suggest there is so much milk and cream available that there is not any room to take in extra loads from other parts of the region. Industry contacts say a few milk handlers are discounting loads of milk to $3 or $4 under Class III to find a home for the milk. Class I bottling demand is steady and sales into Class II processors are stable.
Moderating temperatures this week are prompting milk production to increase in Arizona. Manufacturers have plenty of milk available and are running near full capacity. Processors in surrounding states turned back loads of milk and cream they would typically take in from Arizona milk handlers due to storm conditions or lack of processing space. Arizona Class I sales are flat.
In New Mexico, milk production is steady and following typical seasonal patterns. However, milk processors in parts of eastern New Mexico contended with the strong winter storms and found it difficult to find open capacity for any extra loads of milk.
Farmers and dairy processors in the Pacific Northwest continue to grapple with the effects from a strong winter storm over the weekend. Heavy snows, freezing rain and power outages disrupted milk transportation and processing. A few of the highway passes were not able to get cleared until mid-week. Industry contacts say some farmers had to dispose of milk because haul trucks could not reach the farm. Power outages stretched into late this week. With the loss of power, several manufacturers were unable to process the milk on hand and had to discard milk supplies. Other processors worked with skeleton crews. Bottling demand increased ahead of the storm.
Milk production in the mountain states of Idaho, Utah and Colorado is strong and keeping processing facilities full. Industry contacts say that some extra loads of Idaho milk were moving into surrounding states at discounts of $4 to $5 under Class IV prices.
There is plenty of condensed skim milk available for drying, but spot sales are flat. Many processors have the condensed skim needed and are not able to take on much extra.
Western cream is plentiful, and butter churning is very active. Multiples are steady, prompting a few butter makers and manufacturers to use the cream they have rather than try to sell spot loads.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2100
