California milk production is steady. Contacts report milk output is down compared to this time last year and below some previously forecasted levels. Milk volumes are available for processing though some plant managers say spot availability has declined compared to the start of October. Demands for Class II and III are steady to higher, while Class I sales are unchanged.
Milk output is unchanged in Arizona, though some contacts are hopeful that cooler temperatures in the state will contribute to increased output in the coming weeks. Processors say they continue to bring loads of milk in from other states, as local volumes remain tight. Demand is steady across all Classes.
In New Mexico milk production is steady but remains below some stakeholders' expectations. The NASS Milk Production report released on October 20th showed that September production had declined in the state by 3.5 percent. Contacts say this decline was mostly driven by a reduction in the statewide milk cow population. Milk volumes are tight, and some plant managers say they are sourcing loads of milk from other states. Across all Classes, demand is unchanged from last week.
In the Pacific Northwest milk production is steady. Stakeholders say milk volumes are available for processing. Tanker availability is limited, and some plant managers say this is preventing them from moving loads of milk outside of their local areas. Demand for Class I is trending higher, while Class II and III demands are unchanged.
In the mountain states of Idaho, Utah, and Colorado contacts report a significant decline in temperatures over the last week. Contacts report this drop in temperatures has contributed to a decline in milk production. Processors say milk is available for them to run busy schedules. Some plant managers report they are selling loads of milk due to scheduled plant maintenance. Some of these milk loads are moving to other parts of the region, where supplies are tighter. Demand is steady across all Classes.
Contract condensed skim demand is strong in the West, though contacts report limited spot availability. Stakeholders say spot interest in condensed skim is steady to higher as some purchasers are looking for additional loads. Cream volumes are becoming more available in the region, and spot purchasers say local multiples have moved lower in recent weeks. Class II producers and butter makers are actively purchasing loads of cream. Cream multiples moved lower at the top of the range, while the bottom was unchanged.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.4170 - 4.1835
Multiples Range - All Classes: 1.0700 - 1.3100
Price Range - Class II; $/LB Butterfat: 3.8641 - 4.1835
Multiples Range - Class II: 1.2100 - 1.3100
