Milk output varies throughout the state of California. Some contacts report high temperatures and dry weather are contributing to reduced production in some areas. Meanwhile, others say milk production is strong and remains unchanged week to week. Processors in the state say milk is available for them to run busy schedules. Some plant managers are selling loads of milk to other parts of the region where supplies are tighter. Educational institutions in the state are increasing their purchasing of Class I milk as they prepare for fall classes. Steady demand is present for Class II and III.
High temperatures in Arizona are contributing to seasonally declining milk production. Extreme rain and flooding are reducing the ability of some producers to move volumes of milk from farms to processing facilities. This has caused some downtime at drying operations that were unable to obtain sufficient milk volumes. Milk supplies are tight in the state, and some processors continue to source loads of milk from parts of the region. Demand is steady across all Classes.
Farm level milk production is declining, following seasonal trends in New Mexico. Contacts report overall output remains down compared to last year. Milk availability is limited and causing some processors to move loads from other states to meet current production demands. Class I sales are trending higher, due to increased educational purchasing. Meanwhile, Class II and III demands are unchanged.
In the Pacific Northwest, high temperatures continue to contribute to declining milk production. Stakeholders say milk remains available for processing, despite seasonally declining output. Contact reports labor shortages and transportation issues are causing them to sell some loads of milk at a discount. Demand is steady to higher for Class I. Class II and III demands are unchanged.
Seasonally high temperatures are contributing to declining milk production in the mountain states of Idaho, Utah, and Colorado. Milk is available for processing in the area. Spot loads of milk are being traded from $3 to $6 under Class IV. Plant managers say loads of milk continue to move at a discount due to labor shortages. Across all Classes, demand is unchanged.
Condensed skim demand is strong, as contract purchasers are pulling at the higher ends of their availability. Some spot purchasers are searching for additional loads of condensed skim, as inventories are tightening in the region.
Cream production is declining, and inventories are tightening, in the West. Some butter makers say high cream multiples and labor shortages are causing them to sell additional loads of cream. Cream demand is strong. Western cream multiples are unchanged this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.3308 - 4.2695
Multiples Range - All Classes: 1.1000 - 1.4100
Price Range - Class II; $/LB Butterfat: 3.9364 - 4.2695
Multiples Range - Class II: 1.3000 - 1.4100
