Milk production has stabilized in California, after trending higher through the early weeks of October. Contacts report milk output remains below previously forecasted levels and down compared to this time last year. Processors are running busy schedules, making use of available milk in the state. Demand is steady for Class I but is trending higher for Classes II and III.
In Arizona temperatures are cooling, though contacts say milk output remains steady from last week. Milk volumes are tight in the state. Some processors are purchasing loads from other areas, where milk volumes are more ample, for below Class prices. Contacts report some milk deliveries have been delayed due to flooding caused by heavy rain in parts of the state. Demand is steady for Classes I and III, while Class II demand is softening.
Milk production is steady in New Mexico, though output remains down compared to October of 2021. Some processors in the state are sourcing loads of milk from nearby states to meet current production needs. Across all Classes, demand is steady.
Milk production is trending higher in the Pacific Northwest. Stakeholders say temperatures are nice and that cows are comfortable with the current weather. Milk volumes are available in the area. Some processors say they are selling loads of milk to other parts of the region, but some milk movement is being hindered as tanker availability is limited. Demand is unchanged across all Classes.
Milk output is steady to higher in the mountain states of Idaho, Utah, and Colorado. Contacts say mild temperatures are contributing to increased cow comfort. Milk is available for processing, and some loads of milk are being sold to other parts of the region. Stakeholders say some plants are down for unplanned maintenance, causing loads of milk to be sold below Class prices. Steady demand is present across all Classes.
In the West, condensed skim demand is strong. Some contacts note demand is down from last month, but tight availability is causing some contract purchasers to turn to the spot market. Cream volumes are becoming more available, amid increasing regional milk production. Contacts note strong demand from Class II processors who are preparing for strong holiday demand. Meanwhile, butter makers continue to run busy production schedules and pull on cream supplies. Cream multiples moved lower on both ends of the range.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.4154 - 4.2134
Multiples Range - All Classes: 1.0700 - 1.3200
Price Range - Class II; $/LB Butterfat: 3.9262 - 4.2134
Multiples Range - Class II: 1.2300 - 1.3200
