In California milk production is steady. Some producers say that output has peaked, though milk inventories remain available in the state. Some purchasers from other states, with tighter milk supplies, are looking to California for available loads of milk. Stakeholders say that some unplanned downtime is causing them to sell spot loads of milk below Class to nearby production facilities. Demand for Class I is trending lower as some educational institutions are reducing their purchasing in preparation for summer holidays. Class II and III demand are unchanged.
Milk production in Arizona is steady, but that output is largely dependent on the weather each week. Contacts report that temperatures over the weekend began to reach or surpass 100 degrees Fahrenheit. Processors in the state continue to source milk loads from other, nearby, states. Class I milk sales are declining, as summer break is approaching for educational institutions. Strong demand is present for Class II and III.
Higher temperatures in New Mexico are contributing to a decline in milk production. Stakeholders say that milk inventories are available, but that they expect availability to lessen in the coming weeks. Meanwhile, some handlers in the state continue to move loads to nearby states where milk is less available. Demand is unchanged across all Classes.
Milk production in the Pacific Northwest is trending higher. Production trends are, reportedly, lagging previous years by a few weeks. Contacts attribute this to cooler weather in April. Plant managers say that spot loads of milk are available. Spot inventories are primarily moving locally as shortages of available truck drivers and tankers are preventing sellers from moving volume to other areas. Demand is steady across all Classes.
Milk production is steady to higher in the mountain states of Idaho, Utah, and Colorado. Producers say that total milk output is down year over year in the area. Spot loads of milk are available, and sellers are moving loads from $4 to $6 under class. Some plant managers say that they are moving loads to other parts of the country where inventories are tighter, but that the volume they can move is limited by tanker shortages. Demand is steady for Class I and III, while Class II demand is increasing.
Interest in condensed skim continues to pick up. Contract purchasers are, reportedly, purchasing near the higher end of their availability. Cream inventories are available in the West. Some stakeholders say that there is interest in cream loads from purchasers in other regions. Demand for cream is steady as ice cream and butter makers are running busy production schedules. Western cream multiples are unchanged from last week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.3000
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