In California farm level milk production is steady. Class I demand is picking up as strong retail demand and educational demand are present in the state. Demand for Class II is softening as some processors are, reportedly, preparing for lighter year-end production schedules.
Arizona milk production is increasing. Contacts who previously reported bringing milk from out of state say that local inventories are currently sufficient to meet production demand. Bottling demand is steady, while demand for Class II and III is strong.
Milk is tight in New Mexico. Production has been steady to higher in recent weeks, though contacts report that production has declined year over year. Some contacts say that tighter availability for feed and increased prices have contributed to declining annual production. Steady demand is present for milk across Classes.
Milk production in the Pacific Northwest is trending higher. While farm level output is on the incline, year to date output is still several percentage points below some handler forecasts. Sales of milk for bottling are flat.
In the mountain states of Idaho, Utah, and Colorado, farm level milk production is steady to higher. Spot availability of milk in Idaho is, reportedly, increasing. Some contacts report purchasing spot loads at $3 under Class III. Class I demand is strong, seasonally.
Contracted condensed skim is steady in the region. Demand for cream is strong in the West. Cream availability is mixed, as purchasers are looking for loads to meet strong year-end production demand. Cream multiples shifted 2 points lower this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.1500 - 1.3800
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