Farm level milk output in California is steady and some milk contacts do not expect a near term decline in production. Class I demand is strong, while Class II sales are holding steady in the state.
Milk output is unchanged but down year over year in Arizona. Much of the available supplies are going into bottling operations to meet strong local demand. Some dairy processors are bringing in milk from out of state to meet production needs. Strong demand is present for Class II and III.
In New Mexico milk production has increased. Shipping issues persist in the state, though some contacts report moving milk out of state and into regions with tighter supplies. Class I orders are steady to slightly lower, while Class II demand has ticked higher this week.
Milk production is declining in the Pacific Northwest; recent heavy rain in the region has reportedly had a negative effect on cow comfort. Bottling demand is unchanged. Class III producers are running at capacity heading into the holiday season, pulling on tighter milk supplies.
Farm-level milk production is level in the mountain states of Idaho, Utah, and Colorado. Demand for milk for bottling is steady, seasonally. In parts of the area Class III demand is strong.
Contracted condensed skim is steady. Demand for cream is present in the West, though availability varies throughout the region. In preparation for the holidays end users are searching for additional spot loads to meet production demand. Cream multiples in the West pushed higher this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.2100 - 1.4000
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