In California milk production is steady to higher. Contacts report that while volumes are up over the previous weeks, they remain below production levels this time last year. Some processors in the state are, reportedly, unable to utilize additional volumes of available milk, due to labor shortages. Some processors in the state report that nearby states, with lighter milk production, are looking for loads to meet current market demands. Shortages of available tankers and truck drivers are limiting the ability of some processors from fulfilling these out of state orders. Demand is steady across all Classes.
Warmer weather in Arizona has caused milk production to decline this week. Milk output is, reportedly, down year over year. Processing plants in the region are pulling in volumes of milk from other nearby states. Demand for Class I and II is steady.
Milk production in New Mexico is steady this week, though some producers in the area say that overall output is down year over year. Some additional loads of milk have become available in the state due to unplanned down time. Processors report that they can relocate these loads to nearby balancing operations, and some say they have moved loads to nearby states with tighter milk availability. Class II demand is steady, while Class I demand is trending higher.
Farm level milk production is increasing in the Pacific Northwest. Contacts say that improving weather in the area is increasing cow comfort. Milk is available, allowing processing facilities to run busy schedules. Demand for Class I and III is steady.
In the mountain states of Idaho, Utah, and Colorado milk production is trending higher. Labor shortages in the area are, reportedly, contributing to some unplanned downtime at plants in the area. Milk loads are plentiful in the area, and loads are being actively sold on the spot market. Stakeholders say that loads are currently being sold from $3 to $5 under Class IV. Stakeholders say that they are moving loads of milk to areas with tighter supplies. Across all Classes, demand is steady.
Condensed skim contracts are steady, in the West. Stakeholders say that overall demand for condensed skim has been strong for the last few weeks. Demand for cream is steady. Ice cream and butter makers are running active schedules and pulling at regional supplies. Some purchasers from other regions are, reportedly, looking to the West for supplies to meet current production needs. Stakeholders say that limited tanker availability is causing them to focus their cream sales on local customers. Western cream multiples are unchanged this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.3000
