California milk production has plateaued post-peak flush, week to week. Haulers are moving some spot milk out of state to areas of tighter availability. Contacts say active production schedules at dairy processing plants are keeping Class II and Class III sales elevated. Bottling demands are flat. Recent reports indicate drought conditions in California are limiting both viable grazing opportunities and hay availability, contributing to increased demand and steeper costs for hay compared to previous years.
In Arizona, milk output is dropping. Heat is compromising cow comfort as some locations experienced triple-digit temperatures early in the week. Class I sales are level. Demand is steady to higher for all other Classes.
New Mexico's farm level milk production is trending down. Weather conditions have been hot and dry. Bottling demand is stable. Balancing plants are keeping steady operating schedules.
Milk output in the Pacific Northwest is fairly flat. Milk is down from this time last year. Feed conditions are reportedly favorable and weather has been mild. Some contacts are planning production changes in the event that more milk doesn't come. Bottling sales are level to lower. Class III demand is strong.
In the mountain states of Idaho, Utah, and Colorado, milk flows are fairly steady. Some spot loads have been moving out to other areas, but limited hauler availability and steep fuel costs preclude further transportation in some cases. Bottling sales are firm, and demand is stable across all other Classes.
Condensed skim demand is steady to higher, and supplies are available to meet spot and contract needs. Western cream is also available, and multiples are unchanged this week. Production is active for ice cream and butter, and cream demand is strong from dairy manufacturers. Demand is present outside of the region as well, and some sellers are moving cream eastward to areas of lower availability.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.3100
