Fluid Milk and Cream - Western U.S. Report 28

Farm level milk production is steady in California this week. Contacts report milk supplies     are available to meet production demands. Some loads of milk are being sold to customers in     nearby states where inventories are tighter. Demand is steady across all Classes. 

Hot weather in Arizona is contributing to a decline in milk production. Milk inventories are     tight in the state and some stakeholders say they are bringing in loads from other states to     meet current production needs. Demand for Class I is steady, but demand is trending higher     for Class II and III. 

In New Mexico, milk production is unchanged this week. Contacts report milk output is down compared to this time last year. Milk inventories are tight. Some plant managers say they are sourcing milk from other states to meet current production needs. Demand is unchanged across all Classes. 

Warmer weather in the Pacific Northwest is improving cow comfort and contributing to an increase in milk output. Inventories of milk are available to meet processors' needs in the area. Some plant managers are selling loads of milk to other parts of the region. Demand for Class II and III is strengthening, while Class I demand is steady. 

In the mountain states of Idaho, Utah, and Colorado, milk production is steady. Spot loads of milk continue to trade as low as $6 under Class IV as inventories remain available in the area. Stakeholders say tankers are available, allowing them to send some loads to customers in other parts of the country. Across all Classes, demand is steady.

Condensed skim demand is strong in the West, as contacts report steady inquiries from    purchasers looking for spot loads. Contract purchasers continue to pull at the higher ends     of their availability. Ice cream and butter makers are running busy schedules and     contributing to strong regional demand for cream. Spot cream inventories have begun to     tighten, but purchasers say they can obtain loads to meet their production needs. Western     cream multiples moved higher on the bottom, while the top is unchanged.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.1833 - 3.9202
     Multiples Range - All Classes:               1.0800 - 1.3300
     Price Range - Class II; $/LB Butterfat:      3.8023 - 3.9202
     Multiples Range - Class II:                  1.2900 - 1.3300