Thursday, November 3, 2022

Fluid Milk and Cream - Western U.S. Report 44

In California, milk production is unchanged from last week; stakeholders say output was     steady through the latter half of October. Milk output is below some previously forecasted     levels in the state. Stakeholders say milk is available for processing, but volumes are not     excessive. Demand is steady across all Classes. 
Contacts report cooling temperatures in Arizona, and some say this may have a positive impact on milk output in the coming weeks. Meanwhile, milk production is steady, although milk volumes are tight, and some processors are purchasing loads from other states to meet their current production needs. Some plant managers say they are running reduced schedules as they complete regularly scheduled maintenance. Class I demand is steady to lower, while demands for Classes II and III are unchanged. 
Milk production is trending higher in New Mexico. Some producers say output is down compared to this time last year. Processors say milk volumes are tight, and some are sourcing loads from other parts of the region to maintain steady production schedules. Demand is unchanged across all Classes. 
Pacific Northwest contacts say milk production is steady and milk remains available for processing. Some loads of milk are being sold to other parts of the region where volumes are tighter. Processors are running steady production schedules. Across all Classes, demand is steady. 
Milk output is unchanged in the mountain states of Idaho, Utah, and Colorado. Milk is available for processing. Stakeholders say some loads of milk are going to other parts of the region, but some milk is being sold at a discount, in local markets, due to limited tanker availability. Some processors report labor shortages are contributing to increased load and unload times at plants. Demand is unchanged across all Classes. 
Contract condensed skim purchasers are pulling heavily on volumes in the West. Stakeholders say condensed skim spot availability is limited, amid strong demand from spot purchasers. Demand for cream is steady in the region. Cream is becoming more available, and multiples are moving lower. Some processors are selling loads of cream but say transportation issues are causing them to offer volumes at lower prices. Cream multiples moved lower at both ends of the range this week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.3448 - 4.0706
     Multiples Range - All Classes:               1.0600 - 1.2900
     Price Range - Class II; $/LB Butterfat:      3.7866 - 4.0706
     Multiples Range - Class II:                  1.2000 - 1.2900



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...