California milk production is trending higher, though contacts report that farm level output is down year over year. Class I purchasing is steady to higher. Some production facilities in the state are running below capacity, due to labor shortages. Class II demand is unchanged.
Farm level milk production is increasing in Arizona but remains below some previously forecasted levels. Processing facilities are running busy schedules to work through available milk supplies. Demand is steady for Class I, while Class IV demand is increasing.
In New Mexico milk production is steady to higher, while producers continue to note a decrease in year over year output. Stakeholders say that milk is available, and some contacts report sending loads to nearby states to help meet local demand. Class I and II demand is steady to higher.
Extreme weather last week had a negative effect on cow comfort and milk production in the Pacific Northwest. Some producers say that the weather has improved in recent days, and with it milk production is picking back up. Overall milk production is below previously forecasted levels in the area. Milk is available and plant managers say that they have the space for loads, but that labor shortages are preventing them from taking in and utilizing higher volumes.
Milk production is also recovering from recent bad weather in the mountain states of Idaho, Utah, and Colorado. Contacts report that milk production is improving and that loads are available to meet current processing needs. Demand for Class I milk is steady to higher. Contacts report that spot loads of milk are available and are moving at $3 to $5 under Class IV. Plant managers say that labor shortages and delayed production supplies are preventing them from running at capacity. Demand is unchanged across all Classes.
Western condensed skim contracts are steady. Condensed skim purchases for export to Mexico are, reportedly, declining. Steady demand for cream is present throughout the region. Cream inventories are tightening but remain available. Some butter makers say that they are making use of cream inventories internally to rebuild inventories. Western cream multiples are unchanged this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
