Milk output has, reportedly, begun to reach its peak in California. Contacts report that farm level production is steady this week. Milk is available in the state; some processors report that purchasers from other states, where inventories are tighter, are looking for loads to meet their current production needs. Some plant managers say that they are selling spot loads of milk below Class to nearby facilities due to unplanned down time. Demand is steady for Class I and III, while increased ice cream production is contributing to higher Class II demand.
Farm level milk production is steady to lower in Arizona, and contacts report that output is down when compared to this time last year. Some processing facilities are utilizing milk loads from other nearby states to fulfill local production needs. Class II and III purchasing is strong as ice cream and cheese makers in the state are running busy schedules
In New Mexico, milk output is steady to lower, as warm weather in the state is having a negative impact on cow comfort. Milk continues to be available in the state, and some handlers are selling loads to nearby states where milk inventories are tighter. Stakeholders say that labor shortages continue to cause some processing plants to run below capacity. Across all Classes, demand is steady.
Farm level milk output is steady to higher in the Pacific Northwest. Contacts report that milk production is down year over year. Processing facilities in the area are running busy schedules, as milk is available in the area. Spot loads of milk are available in the area, but some plant managers say that they are primarily selling loads locally. Shortages of available tankers and truck drivers are, reportedly, preventing some spot sellers from moving large volumes of milk to other areas. Steady demand is present across all Classes.
In the mountain states of Idaho, Utah, and Colorado milk production is stable, and milk inventories are plentiful. Stakeholders say that spot loads of milk are selling from $3 to $5 under Class IV. Some deeper discounts are being offered for loads of milk that have moved to the spot market due to unplanned down time. Some loads of milk are, reportedly, going to other parts of the country where inventories are tighter. Class I and III demand is steady, while Class II demand is trending higher.
In the West, demand for condensed skim is trending higher. Contacts report that contract purchasers are buying towards the higher end of their availability. Demand for cream is steady as inventories are available throughout the region to meet current production demands. Ice cream and butter makers are pulling at cream inventories as production facilities are running busy schedules. Western cream multiples moved higher at the top, while the bottom is unchanged.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.3000
