California milk production is strong and following seasonal patterns. Some industry contacts suggest the state is close to spring flush. With ample amounts of milk and cream, manufacturing is operating at or near full capacity. Milk handlers are discounting a few loads of milk to $3 or $4 under Class III. Balancing plants are running heavy. Bottling demand is steady to higher. Class II sales are steady.
Milk production in Arizona is steady to higher. Favorable weather has kept the milking herd comfortable. As parts of the surrounding region recover from the winter storms, normal milk flows are returning. Manufacturers have plenty of milk available for most processing needs and Class I sales are up slightly as the pipeline refills.
In New Mexico, milk production is recovering from last week’s winter storm. While normal hauling patterns are resuming, some contacts think there may still be some milk discarded due to disruptions. Manufacturers are getting back up to normal processing schedules. However, it will be some time before the total impact of the weather on the industry will be known. Some contacts suspect culling rates may increase in the next few weeks.
Clean up from the recent winter storm in the Pacific Northwest continues, however the region has a few pockets that are still without power. In addition, blockage of a few mountain passes is hindering milk collection and distribution. Most manufacturers are back up and running, trying to catch up on dairy product orders. Class I sales are up as bottlers refill the fluid milk pipeline. On the farm, milk output is climbing, but a few farms still need to run generators to keep going. Industry contacts think there may still be small amounts of milk being discarded.
In the mountain states of Idaho, Utah and Colorado milk production is stable and strong. Industry contacts suggest that the storms last week created some disruptions to milk handling and processing within the region, but impacts were minimal. Manufacturers have plenty of milk for most processing needs. A few loads of milk are available at a discount of $4.50 under Class IV.
Condensed skim orders picked up and spot loads are available. Balancing plants are running heavy schedules, especially in the Southwest.
Western cream multiples stepped slightly higher this week. Cream is widely available, but there is little pressure to move it. Butter churns are backlogged, trying to work through the cream on hand and catch up from the power and supply disruptions from last week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0300 - 1.2100
