Milk production is unchanged in California, though contacts say output is down year over year. Milk supplies are available. Some spot sellers say they are moving loads out of state to other areas with tighter supplies. Contacts report that sales of milk to some processing facilities declined ahead of Memorial Day weekend, due to planned down time. Demand for Class II and III has increased following the long weekend. Class I demand is unchanged.
In Arizona milk output continues to decline from seasonal peaks. Some processors say that milk was more available in the state following the long holiday weekend. Class I demand for milk has declined as some educational institutions have begun their summer breaks. Demand is steady to higher for Class II and III.
Farm level milk production is steady to lower in New Mexico. Contacts say that higher temperatures are having a negative impact on cow comfort. Spot loads of milk are available, and some stakeholders are selling loads of milk to nearby states. Class I demand is steady, while increasing across all other Classes.
Milk production in the Pacific Northwest is steady, though contacts say that output is down compared to this time last year. Labor shortages and large quantities of milk are contributing to longer wait times for unloading at processing facilities in the area. Spot sellers say that loads of milk are available. Many of these loads are, reportedly, being sold locally due to limited tanker availability. The NASS Crop Progress and Condition report released on May 31 relayed that wet and cool weather in northwest Oregon caused a delay to the first cutting of hay and that cooler temperatures are affecting warm season crop planting in Washington. Demand is steady for Class III, while Class IV demand is trending higher.
Milk production is steady in the mountain states of Idaho, Utah, and Colorado. Cool temperatures and rain have been affecting crop growth throughout Idaho. Milk supplies are ample in the area. Spot loads of milk are being sold from $4 to $6 under Class. Contacts report that some loads of milk are being sold to purchasers in other regions, though sales are limited by limited tanker availability and high fuel prices. Across all Classes, demand is steady.
Condensed skim contract sales have picked up, in the West, this week. Contracts purchasers are, reportedly, ordering loads towards the higher end of their availability. Demand for cream is strong, as ice cream and butter makers are running busy schedules to build inventories. Western cream multiples have moved higher at the bottom, while the top is unchanged.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.3100
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