Thursday, September 29, 2022

Fluid Milk and Cream - Western U.S. Report 39

In California, cooler weather and increased cow comfort are contributing to higher milk     output. Contacts report milk production is below some previously forecasted levels and down    from September of 2021. Some plant managers say they continue to move spot milk loads to     other states, despite tightening milk volumes. Across all Classes, demand is steady. 
Milk production is steady in Arizona, though stakeholders say output is down compared to this     time last year. Some processors in the state are reducing their operating hours as they     complete regularly scheduled maintenance. Contacts report loads of milk are being sourced     from other parts of the region. Class I and III demands are steady, but lighter demand is     present for Class II. 
In New Mexico, milk production is unchanged this week. Milk output remains below 2021 as contacts say statewide herd populations are down from a year ago. Some processors in the state say they are running lighter schedules, as they complete regularly scheduled maintenance. Demand for all Classes is steady. 
Milk production is unchanged in the Pacific Northwest. Contacts in the area say cooler fall temperatures are likely to contribute to higher farm level milk output in the coming weeks. Milk volumes are tightening, though some processors say they continue to sell loads. Demand is steady across all Classes. 
Milk output is steady in the mountain states of Idaho, Utah, and Colorado. Some plant managers in the region say they have inventories of milk to sell, while others are increasing their purchasing. Loads of milk are being sold to other parts of the West. Across all Classes demand is steady. 
Condensed skim demand is strong in the West. Contacts report contract purchasers are pulling heavily on tightening supplies. Some spot purchasers say condensed skim loads are becoming more difficult to find. Cream volumes are becoming more available in the region, though contacts note supplies remain somewhat limited. Demand for cream from ice cream makers is declining but remains strong for butter makers. Contacts report cream multiples have continued to move lower in the region.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.4166 - 4.2629
     Multiples Range - All Classes:               1.0900 - 1.3600
     Price Range - Class II; $/LB Butterfat:      3.8554 - 4.2629
     Multiples Range - Class II:                  1.2300 - 1.3600



Monday Closing Dairy Market Update - October Cheese and Butter Inventories Declined

MILK: Traders were uncertain as to how to interpret the moving of spot prices today. Pressure was put on Class III futures after spo...