In California contacts report steady to lower milk production. Output is, reportedly, up from last month but is below November of 2021 volumes. Milk volumes are available for spot purchasing, and some plant managers say they are selling milk loads to other nearby processors. Across all Classes, demand is unchanged.
Milk production is steady to higher in Arizona, though contacts report overall output is down so far this year compared to 2021. Milk volumes are tight in the state, and some processors are pulling in milk from other parts of the country to maintain current production. Demand is steady for Classes I and III but trending higher for Class II.
Milk production is improving amid cooler weather in New Mexico. Contacts report overall output is down this year, compared to last year. Some say smaller herd sizes are contributing to decreased milk production in the state. Class I demand has ticked up this week, as educational facilities returned from holiday breaks. Class II and Class III demands are steady.
Pacific Northwest milk output is strong. Some contacts note milk volumes are plentiful and tanker availability is limited. Some stakeholders say milk deliveries are facing delays due to weather issues in parts of the area. Demand is steady for all Classes.
Milk production is steady to slightly slower in the mountain states of Idaho, Utah, and Colorado. Stakeholders say there is plenty of milk available, and some spot sellers are offering loads at below Class prices. Loads of milk are staying primarily in local markets; stakeholders say milk movement is limited due to labor and tanker shortages. Steady demand is present for all Classes.
Contracted condensed skim demand is picking up following the holiday, but purchasers are not ordering at the top end of their contracts. Stakeholders say spot demand for condensed skim has dried up in recent weeks. Milk production is increasing, and cream availability is improving, regionally. Stakeholders say demand is strong, though cream multiples are decreasing with increased availability. Labor shortages and limited tanker availability are contributing to delayed deliveries of cream to some processing facilities. Butter makers are running busy schedules, utilizing available loads of cream. Cream multiples moved lower on both ends of the range.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.9258 - 3.7158
Multiples Range - All Classes: 1.0000 - 1.2700
Price Range - Class II; $/LB Butterfat: 3.3647 - 3.7158
Multiples Range - Class II: 1.1500 - 1.2700
