Thursday, January 13, 2022

Fluid Milk and Cream - Western U.S. Report 2

California farm level milk production is steady; some producers note that cold weather and     rain in parts of the state have had a negative effect on cow comfort. Demand for bottling is     steady, while Class II demand is increasing. 
Milk production is unchanged in Arizona. Strong demand for milk is present in the state as processors are running busy schedules to meet current market demands. Demand for Class I milk is up. 
Milk production is increasing in New Mexico, despite colder weather. Staffing shortages are causing delays to some load deliveries in the state. Contacts note stronger demand for Class I, but a decline in demand for Class II. 
Snow and rain in the Pacific Northwest are contributing to a slight decline in farm level milk production. This weather has also caused delays to trucks, and some producers are, reportedly, dumping milk that is stuck on farms. Demand for milk is strong across all Classes. 
Milk production is steady to higher in the mountain states of Idaho, Utah, and Colorado. Producers say that inclement weather is delaying deliveries, though supplies are available to meet production needs. Demand is steady across all Classes.
Contracts for condensed skim are steady in the West, while cream is available to meet     strengthening demand. Severe weather and a shortage of truck drivers are causing delays to     deliveries of cream. Western cream multiples are unchanged at the bottom, while the top     moved higher this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.2700




Tuesday Closing Dairy Market Update - Milk Futures Close Under Pressure

MILK Class III milk futures saw substantial price swings from overnight trade to the closing of the day trade. Traders took advantag...