After slowly declining in the second half of April, there has been a small uptick in the rate of milk output in California. Production is steady and flat this week, with May output trending up year-over-year and month-to-month. Class I demand is level.
Arizona milk output is steady. Class I demand is strong. Additional milk from out of state is flowing to bottlers and other dairy manufacturers with available capacity.
Milk production in New Mexico is down slightly. Class I and II demand are level. Balancing plants are active, and holdover numbers continue to decrease.
Class I demand in the Pacific Northwest is strong. Milk output is high, surpassing the predictions of some industry contacts. Additionally, the milk that would have been processed at the plant damaged by fire a few weeks ago is now plugging the holes at other facilities. Some market participants report that, while milk is certainly up, the lack of available plant processing capacity post-fire has made milk output seem even heavier than usual.
Milk is in good supply in the mountain states of Idaho, Utah, and Colorado. Class I orders are level. Condensed skim contracts are steady, and limited spot sales are available at around flat class pricing.
Cream is tightening but still in steady supply. Ice cream production is very active, and butter manufacturing is following a typical seasonal decline. Some dairy manufacturers report no longer receiving irresistible offers to take extra loads of cream, however, butter makers are not concerned about sourcing additional cream if needed. Some ice cream makers, on the other hand, have been making higher offers for spot loads to ensure that cream supplies are on hand to support busy seasonal production. The increase at the top of the cream multiples range this week reflects such offers.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.3800
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