Milk output is steady to lower in California. Some contacts report no change in milk production this week, while others say higher temperatures and dry weather are contributing to declining volumes. Stakeholders say farm level milk production is above previously forecasted levels. Milk remains available for processing. Customers in nearby states, where milk inventories are tighter, are looking to California for available loads. Steady demand is present for all Classes.
Cow comfort in Arizona is being negatively affected by high temperatures. Contacts report this is contributing to lighter milk production. Milk inventories are tight, and some plant managers are sourcing milk from other states. Demand for Class I is trending higher, while demand is steady for all other Classes.
Farm level milk production is steady to lower in New Mexico. Stakeholders say milk remains tight in the state, and some processors are purchasing milk from other states. Contacts report steady demand for all Classes.
Overall milk output in the Pacific Northwest is steady to higher, despite higher temperatures causing a decline in some areas. Milk inventories are available for processing in the area, and some plant managers are selling excess loads to other parts of the region where availability is tighter. Class I demand is steady, while demand for Class II and III is trending higher.
Milk production is steady in the mountain states of Idaho, Utah, and Colorado. Plant managers say spot loads are available and some are shipping loads to customers in other parts of the country. Loads are, reportedly, being traded for a low as $6 under Class IV. Demand is steady across all Classes.
Demand for condensed skim remains strong in the West. Contacts report contract purchasers are pulling at the higher end of the availability and some spot purchasers are looking for additional loads.
Cream inventories are tightening in the West as ice cream and butter makers are purchasing loads to run busy production schedules. Western cream multiples are steady at the bottom, while the top moved higher.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.1828 - 4.0079
Multiples Range - All Classes: 1.0800 - 1.3600
Price Range - Class II; $/LB Butterfat: 3.8016 - 4.0079
Multiples Range - Class II: 1.2900 - 1.3600
