Milk production is steady in California, though some contacts say output remains below previously forecasted levels. Milk is available for processing in the region. Some plant managers are operating lighter schedules as they complete regularly scheduled maintenance, and they are selling extra loads of milk to local processors. Across all Classes, demand is steady.
Arizona milk output is unchanged, and processors in the state say volumes remain tight. Contacts say they are purchasing loads of milk from other states with greater volumes. Some processors are, reportedly, running reduced schedules as they are unable to obtain sufficient milk volumes to operate full schedules. Demands for Classes I and II are steady to lower, while Class III sales are unchanged.
In New Mexico, milk producers say output is steady to higher. Despite improving production, stakeholders say total milk output remains below 2021 levels. Milk volumes are tight in the state. Some processors say they are looking to other parts of the region for milk to meet their current production needs. Demand is steady across all Classes.
In the Pacific Northwest, milk production is unchanged this week. Processors in the area are running busy production schedules to utilize available volumes of milk. Some plant managers are selling excess loads of milk to other parts of the region. Demand is unchanged for all Classes.
In the mountain states of Idaho, Utah, and Colorado, milk production is steady. Milk volumes are plentiful in the area, and processors are making use of available supplies. Some loads of milk are being sold to parts of the region where volumes are tighter, but contacts report sales are subdued as it can be difficult to find tankers to deliver loads further distances. Plant managers say they are selling some loads of milk within local markets at below Class prices. Steady demand is present for all Classes.
In the West, contract condensed skim sales are strong. Some contacts say they are preparing contracts for 2023. Spot volumes of condensed skim are tight. Stakeholders say there is strong demand for condensed skim and some purchasers are looking to the Central region for volumes to meet their current production needs. Throughout much of the region cream volumes are becoming more available. Stakeholders in some parts say volumes remain tight. Tanker availability is limited, and some plant managers say they are selling cream at a discount in local markets to move loads. Demand for cream is strong from Class II processors and butter makers. Cream multiples are unchanged at the bottom of the range, but the top moved higher.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.9033 - 3.5607
Multiples Range - All Classes: 1.0600 - 1.3000
Price Range - Class II; $/LB Butterfat: 3.2868 - 3.5607
Multiples Range - Class II: 1.2000 - 1.3000
