In California contacts report higher temperatures and dry weather are contributing to reduced cow comfort. Due to these conditions, milk output is declining in the state. Despite this reduction in output, milk remains available for processing. Some plant managers say they are sending loads of milk to other parts of the region where inventories are tighter. Demand for Class I is trending higher, while Class II and III demands are steady.
In Arizona milk production is declining, following seasonal trends. Supplies of milk are tight in the state, and some plant managers are sourcing loads from nearby states to meet their current production needs. Class I demand is trending higher, but demand is steady for all other Classes.
Milk production in New Mexico is steady to lower and inventories remain tight. Some processors in the state are sourcing loads of milk from areas with more ample supplies. Class I demand is trending higher as some educational institutions are preparing for the start of the fall semester. Demand for Class II and III is unchanged.
In the Pacific Northwest, overall milk output is steady to higher. Some contacts report pockets of higher temperatures that are contributing to reduced milk production. Processors say milk is plentiful in the area. Some plant managers say they are selling loads to other parts of the region. Class II and III demands are steady to higher, while Class I demand is unchanged.
In the mountain states of Idaho, Utah, and Colorado, milk output is unchanged this week. Spot loads of milk remain available for processing in the area. Contacts report loads of milk being traded from $3 to $6 under Class IV. Some plant managers are selling excess loads to customers in other parts of the country. Across all Classes, demand is steady.
Contacts report contract purchasers of condensed skim are pulling on the higher ends of their availability in the West. Strong demand is present for condensed skim as some spot purchasers are looking for additional loads.
Ice cream and butter makers in the region are steadily purchasing loads of cream to run active production schedules. Meanwhile, declining milk output is contributing to reduced cream production. Cream volumes are tightening. Western cream multiples are unchanged this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.1649 - 3.9855
Multiples Range - All Classes: 1.0800 - 1.3600
Price Range - Class II; $/LB Butterfat: 3.7803 - 3.9855
Multiples Range - Class II: 1.2900 - 1.3600
