High temperatures are contributing to reduced cow comfort and milk output in California. Despite a decline in production, milk volumes are available for processors in the state to run busy schedules. Contacts report they continue to move loads of milk to other parts of the region where supplies are tighter. Class I milk sales are steady to higher as educational institutions are returning from their summer breaks. Demands for Class II and III are steady.
Milk production continues to decline in Arizona, following seasonal trends. Some producers in the state say recent rain and flooding have limited their ability to transport some volumes of milk to processing facilities. Plant managers at some drying operations in the state say this has contributed to unplanned down time. Some processors in Arizona are receiving milk from other parts of the region to meet current production demands. Demand for milk is steady across all Classes.
In New Mexico, farm level milk production is steady to lower. Stakeholders say milk volumes are limited in the state. Some plant managers say they continue to source loads of milk from other states. Educational facilities are resuming classes for their fall semester and are increasing their purchasing of Class I milk. Sales of Class II and Class III are steady.
Milk production is declining in the Pacific Northwest, as hot temperatures persist in the area. Contacts report milk is available for processing. Some plant managers in the area say labor shortages and high temperatures are causing them to run reduced production schedules. Volumes of milk remain available, and some are being sold at a discount. Demand is steady across all Classes.
In the mountain states of Idaho, Utah, and Colorado, contacts report declining milk production amid seasonally high temperatures. Despite this decline, milk remains available for processing. Some plant managers say they are moving loads at a discount due to labor shortages and limited tanker availability. Purchasers from other states in the region are buying loads of milk from the mountain states to meet local production demands. Class I demand is steady to higher, due to increased educational purchasing. Demands for Class II and Class III are steady.
Contract purchasers of condensed skim continue to pull at the higher ends of their availability. Contacts report strong demand from ice cream makers. Condensed skim supplies are tightening in the region.
Cream availability is tightening. Stakeholders say cream production is declining and demand is strong. Ice cream makers continue to purchase loads of cream to maintain steady production. Some regional butter makers say they are selling loads of cream, due to high cream multiples and labor shortages. Strong demand is present for cream. Western cream multiples are steady on the bottom, but moved higher at the top.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.2588 - 4.3253
Multiples Range - All Classes: 1.1000 - 1.4600
Price Range - Class II; $/LB Butterfat: 3.8513 - 4.3253
Multiples Range - Class II: 1.3000 - 1.4600
