Milk production in California is steady to higher this week. Some contacts report milk output in the state continues to improve due to cooler weather and increased cow comfort. Some stakeholders say milk production has recovered from the drop seen in early September due to record high temperatures. Milk volumes are available, allowing some plant managers to sell loads to nearby states. Demand is steady across all Classes.
In Arizona milk production is steady but remains below 2021 levels. Milk volumes are tight and causing some unplanned downtime at plants when they are unable to obtain sufficient volumes. Some processors are sourcing loads from other parts of the region to operate steady production schedules. Class I and II demands are steady to lighter, while Class III demand is steady.
Milk production is steady in New Mexico. Contacts report output is below some previous expectations and remains down compared to this time last year. Processors in the state say they are running lighter production schedules to complete some scheduled maintenance. Milk volumes are tight in the state and some plant managers are sourcing loads from other states to meet current production needs. Across all Classes, demand is steady.
In the Pacific Northwest fair weather is contributing to increased cow comfort and an uptick in milk output. Contacts say milk volumes are available. Loads of milk are mostly trading locally, due to limited tanker availability. Demand is unchanged across all Classes.
Stakeholders say milk output is steady in the mountain states of Idaho, Utah, and Colorado. Spot loads of milk are available for processing, and some loads are being moved to other states where inventories are tighter. Across all Classes demand is steady. Contract purchasers of condensed skim are purchasing towards the top of their availability, in the West.
Demand for condensed skim is strong and contacts say availability is tightening. Meanwhile, cream availability is increasing in the region. Contacts report that cream inventories remain tight, but additional loads have become available following storms in the Southeast region. Stakeholders say cream demand is strong, and multiples are unchanged this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.4319 - 4.2820
Multiples Range - All Classes: 1.0900 - 1.3600
Price Range - Class II; $/LB Butterfat: 3.8727 - 4.2820
Multiples Range - Class II: 1.2300 - 1.3600
