Milk output is mixed in California. Some contacts report that milk production has improved this week, and overall output was up in July compared to a year ago. Others are reporting that higher temperatures and dry weather have contributed to reduced milk production. Milk is available for processing in the state, and some plant managers say they continue to send loads to other parts of the region. Contacts report increased sales of Class I. Demand for Class II and III are unchanged.
Farm level milk production is steady to lower in Arizona. Contacts report reduced cow comfort due to high temperatures in the state. Due to tight in-state milk supplies, some plant managers are purchasing loads of milk from other parts of the region to meet their current production needs. Demand for Class I is steady to higher, and unchanged for all other Classes.
In New Mexico, milk production is declining, and some contacts say output is down compared to this time last year. Processors in the state report they are purchasing loads from nearby states where inventories are more available. Class II and III demands are steady, while Class I sales continue to trend higher.
High temperatures in the Pacific Northwest are contributing to reduced cow comfort and declining milk output. Despite this, milk is available for processing. Loads of milk are, reportedly, being sold to other parts of the region where supplies are less available. Some educational institutions are increasing their purchasing of Class I milk as they prepare for the fall semester. Demands for Class II and III are also trending higher.
Milk output is declining in the mountain states of Idaho, Utah, and Colorado. Stakeholders say that milk remains available in the area, and that spot loads are being traded from $3 to $6 under Class IV. Some loads of milk are, reportedly, being sold due to labor shortages that are preventing processing facilities from running full schedules. Class I demand is steady to higher, while Class II and III demands are unchanged.
Contract purchasers of condensed skim continue to pull heavily on supplies in the West. Some contacts report that they continue to sell spot loads of condensed skim, but that availability is tightening. Demand for cream is strong throughout the region, as ice cream and butter makers are running active schedules. Stakeholders say cream inventories are tightening in the region. Western cream multiples moved higher on both ends this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.2615 - 4.1807
Multiples Range - All Classes: 1.1000 - 1.4100
Price Range - Class II; $/LB Butterfat: 3.8545 - 4.1807
Multiples Range - Class II: 1.3000 - 1.4100
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