High temperatures in California are contributing to a decline in milk production. Despite this, contacts report total milk output in August was higher than in 2021. Processors say milk is available in the state. Some loads of milk are being sold to stakeholders in other states where supplies are tighter. Demand is steady, across all Classes.
Milk production continues to decline, following seasonal trends, in Arizona. Contacts report high temperatures are having an impact on cow comfort. Milk volumes are tight in the state, and some processors say they are purchasing loads from nearby states to meet their current production needs. Strong Class I demand is present as educational pipelines are being filled. Demands for all other Classes are steady.
In New Mexico, milk production is declining seasonally. Contacts report output is down compared to last year; some attribute this decline to higher feed costs and declining statewide herd populations. Milk volumes are tight, causing some processors to purchase loads from other parts of the region. Across all Classes, demand is unchanged.
In the Pacific Northwest milk output is declining, as high temperatures remain prevalent in the area. Contacts report some processing plants in the state are closed for scheduled maintenance, increasing milk availability. Loads of milk are being sold to purchasers in other states, where supplies are tighter. Demand for Class II is steady to lower, as some production facilities are running lighter schedules during the upcoming Labor Day weekend. Meanwhile, demands for Class I and III are steady.
Contacts in the mountain states of Idaho, Utah, and Colorado say high temperatures are having a negative impact on cow comfort and milk output. Some milk producers in the area say milk production is below previously forecasted levels. Despite this, milk is available for processing in the state. Staffing shortages at some processing facilities in the state are contributing to reduced production schedules. Some loads of milk are being sold at a discount to local purchasers. Demand is softening from Class II purchasers but is unchanged across all other Classes.
Condensed skim sales are strong in the West. Contacts report contract purchasers continue to pull heavily on supplies. Spot purchasers of condensed skim are paying premiums to obtain loads that are in limited supply. Some cream purchasers in the region are running reduced production schedules during the upcoming holiday weekend. Due to this, cream availability is higher despite declining farm milk production. Cream multiples are steady at the bottom but slid lower at the top.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.3424 - 4.3754
Multiples Range - All Classes: 1.1000 - 1.4400
Price Range - Class II; $/LB Butterfat: 3.9501 - 4.3754
Multiples Range - Class II: 1.3000 - 1.4400
