Thursday, July 7, 2022

Fluid Milk and Cream - Western U.S. Report 27

Milk production in California is steady compared to last week. Some contacts report milk     output as steady to higher compared to this time last year. Milk is available, and unplanned     and planned downtimes at some production facilities have caused plant managers to sell     additional loads of milk. Stakeholders say milk loads are going to production facilities     both in and out of the state. Demand is steady for Class I but is trending higher for Class     II and III. 
Farm level milk production is unchanged this week, though contacts report that output is down year over year. Demand for Class I milk is declining in the state, but some plant managers say that they are moving this milk to nearby balancing operations. Class II and III demands are unchanged this week. 
Milk production is declining, seasonally, in New Mexico. Milk availability is tight in the state as overall output is lower than last year. Plant managers say that they are purchasing loads of milk from out of state. Across all Classes, demand is steady. 
Improving weather conditions in the Pacific Northwest are contributing to an increase in cow comfort and farm level milk production. Stakeholders say total output remains down compared to last year. Milk is available for processing in the area, and some plant managers relay selling spot loads to other parts of the region where inventories are tighter. Demand is steady across all Classes. 
Milk output is unchanged in the mountain states of Idaho, Utah, and Colorado. Milk is available in the area and some contacts report spot loads being sold as low as $6 under Class IV. Class II and III production is trending higher, following the long holiday weekend, while Class I demand is steady. 
Demand for condensed skim is strong in the West. Contract purchasers are, reportedly, ordering loads towards the higher ends of their availability. Cream demand is steady to higher this week. Spot purchasers say cream is available for processing in the region. Western cream multiples are unchanged this week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.1243 - 3.9574
     Multiples Range - All Classes:               1.0500 - 1.3300
     Price Range - Class II; $/LB Butterfat:      3.8384 - 3.9574
     Multiples Range - Class II:                  1.2900 - 1.3300



Monday Closing Dairy Market Update - October Cheese and Butter Inventories Declined

MILK: Traders were uncertain as to how to interpret the moving of spot prices today. Pressure was put on Class III futures after spo...