In California producers say that milk output has passed its seasonal peak but is holding steady from last week. Processing facilities in the state are running busy schedules to work through available supplies of milk, and some spot sellers are moving loads to other nearby states where milk is tighter. Demand for Class I is steady, while Class II and III demand is trending higher.
Warm weather in Arizona is contributing to a decline in milk production. Stakeholders say that output is down compared to this time last year. Some processors in the state are, reportedly, sourcing loads of milk from nearby states. Class II and III demand is trending higher, while demand for Class I is unchanged.
Warm weather is having a negative impact on cow comfort in New Mexico and has contributed to a decline in milk production. Spot milk availability has tightened, and some processing facilities are obtaining loads of milk from other states to meet current production needs. Demand is steady across all classes.
Farm level milk production is steady to higher in the Pacific Northwest, though stakeholders say that output remains down year over year. Some contacts in the area say that cool and wet weather has delayed alfalfa cutting in the area, reducing local feed availability. Spot loads of milk are available, though limited tanker availability is preventing sellers from moving loads out of the area. Stakeholders say that long wait times are present for unloading at processing facilities, due to large volumes of milk and labor shortages. Demand is steady to higher for Class II and III.
In the mountain states of Idaho, Utah, and Colorado, milk output is steady to higher. Contacts report that weather in the latter half of the last week was nice and has contributed to increased cow comfort. Some spot sellers report that they are moving loads of milk to other regions, but that high fuel prices and limited tanker availability are causing them to primarily move loads within the region. Demand is unchanged across all Classes.
Sales of condensed skim are trending higher in the West, as some contacts say that they are moving loads to other regions with tighter availability. Meanwhile, regional contract purchasers are ordering loads towards the higher ends of their availability. Butter and ice cream makers are pulling heavily at regional cream supplies. Cream sellers say that they are moving some loads to other regions, though limited truck driver availability is preventing them from moving greater volumes. Western cream multiples are unchanged, in the West, this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.3100
