Farm level milk production is steady to lower, as contacts report that output is declining from seasonal peaks. Stakeholders say that milk production is down compared to this time last year. Spot loads of milk are available, and some handlers say they are sending loads to nearby states with tighter supplies. Demand for Class I has continued to decline as summer holidays are approaching for educational institutions in the state. Class II and III demands are unchanged.
Arizona milk production is steady to lower, as warmer weather is contributing to a reduction in cow comfort. Processors in the state say that they have reduced purchasing from nearby states as they prepare for the upcoming holiday weekend. Demand is steady to lower across all Classes.
Milk production has continued to decline in New Mexico this week. Milk inventories remain available for the state. Stakeholders say that sales of milk to nearby states have slowed as some processing facilities prepare for downtime during the upcoming holiday weekend. Across all Classes demand has softened this week.
Pacific Northwest milk production is unchanged this week. Supplies of milk are readily available for production in the area. Stakeholders say that processing facilities have long wait times for unloading due to labor shortages and the large quantities of milk. Spot sellers say that loads of milk are primarily moving locally as they are unable to find truck drivers and tankers available to move loads further away. Across all Classes, demand is steady.
In the mountain states of Idaho, Utah and Colorado, farm level milk production is steady to higher. Loads of milk are available on the spot market, with sellers reporting prices from $6 to $3 under class. Some purchasers in other regions are sourcing loads of milk from the area. Handlers say that limited tanker availability is reducing their ability to move increased volumes of milk further distances. Demand is unchanged across all Classes.
Spot sales of condensed skim have declined this week, as some production facilities are preparing for downtime during the upcoming holiday weekend. Stakeholders say that contract sales of condensed skim are unchanged. The upcoming holiday is contributing to lighter cream demand and increased availability this week. Stakeholders say that cream demand following the holiday weekend is strong as ice cream and butter makers are working to build inventories. Western cream multiples are unchanged at the bottom, while the top moved upward.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.3100
