Milk output is steady to higher in California, as cooler weather is contributing to increased cow comfort. Despite this, contacts report milk production in September is below previously forecasted levels. Milk availability continues to tighten in the state, though some stakeholders say milk volumes are available to send to nearby processing facilities. Demand is steady across all Classes.
In Arizona, milk production is unchanged this week. Contacts report output is below 2021 volumes. Milk inventories are tight in the state, and some processors are purchasing loads from other parts of the region. In the state, some plant managers are operating reduced schedules when they cannot obtain sufficient loads of milk for processing. Demand for Class II is declining, while Class I and III demands are unchanged.
Milk production is steady to lower in New Mexico. Contacts report milk output is below some previously forecasted levels due to declining statewide herd populations. Processors in the state are purchasing loads of milk from other states. Across all Classes, demand is unchanged.
Pacific Northwest contacts report steady milk production. Some contacts say output is below previously forecasted levels, as recent heat waves in the area had a negative impact on production early in September. Milk is available in the area, though some stakeholders say spot loads are becoming scarcer. Some processors report labor shortages are causing increased load and unload times at plants. Demand is steady for Class III, but lighter for Classes I and II.
Milk output is declining, seasonally, in the mountain states of Idaho, Utah, and Colorado. Contacts say spot availability of milk is tightening, but volumes remain available for them to sell loads to other parts of the region where milk is tighter. Steady demand is present across all Classes.
Contracted condensed skim sales are steady in the West. Some contacts report strong demand for condensed skim from spot purchasers. Meanwhile, condensed skim availability is tightening. Demand for cream is declining from ice cream makers but is being counterbalanced by strong purchasing from butter makers. Cream volumes are tight, but contacts are reporting some declines in cream multiples. Overall, cream multiples are steady at the bottom but sliding lower at the top.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.5030 - 4.3946
Multiples Range - All Classes: 1.1000 - 1.3800
Price Range - Class II; $/LB Butterfat: 3.9169 - 4.3946
Multiples Range - Class II: 1.2300 - 1.3800
