California milk output is on the rebound. Components are reportedly strong. As balancing plants tune up for holiday production runs, some milk has been dispersed around planned maintenance. Bottling demand is lower. Class III sales are steady to higher. To supplement lower local crop yields, due to drought conditions, some dairy farmers are buying feed from out of state. Reports indicate recent rainfall and cooler temperatures in the Four Corners region are providing moderate drought improvement and increased cow comfort.
Farm level milk production is steady in Arizona. Class I and Class III sales are strong. Milk output is up in New Mexico. Balancing plants are active. Class I and Class III orders are steady to higher.
Milk is a little tight in the Pacific Northwest. Washington milk production has not recovered to handler forecast levels after this summer’s heat. Class I sales are strong. Contacts say the bottling pool is good and meeting current demand. Some eggnog production has begun. Balancing plants are operating under capacity. Recent reports indicate alfalfa and grass hay harvests are reduced, and drought is the primary driver. Smaller yields of non-irrigated crops are contributing to higher feed costs.
Milk production is stable in the mountain states of Idaho, Utah, and Colorado. Stakeholders report sporadic spot loads; availability is limited to none. Bottling sales are unchanged. Class II and III demand is level to higher.
Contracted condensed skim is steady. Cream is tighter but available to meet current dairy manufacturing needs. Hauler availability remains a hindrance to transportation. Despite this, some cream loads have moved eastward out of the region. Ice cream production is lower, butter production is mixed, and cream cheese production is strong. The cream multiple range narrowed and shifted higher this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.1100 - 1.3500
Information for the period October 4 - 8, 2021, issued weekly
Secondary Sourced Information:
PACIFIC NORTHWEST MARKET ORDER
Milk delivered to the Pacific Northwest Order 124 totaled 589.3 million pounds in August 2021. Class I utilization was 131.6 million pounds and accounted for 22.32 percent of producer milk. The uniform price at test was $17.77, down $0.47 from July 2021, but up $0.28 from the same month a year ago.
ARIZONA MARKET ORDER
Milk delivered to the Arizona Order 131 totaled 379.3 million pounds in August 2021. Class I utilization was 122.8 million pounds and accounted for about 32.4 percent of producer milk. The uniform price at test was $17.51, down $0.19 from July 2021, but up $1.44 from the same month a year ago.
