California milk production is unchanged, though some contacts say production through the first half of December is down compared to 2021 volumes. Processors in the state say spot loads of milk are available for them to meet their current production needs. Demand for Class I is softening as some educational institutions have a reduced need for their upcoming winter breaks. Meanwhile, demands for all other Classes are unchanged.
Milk production is steady to higher in Arizona, as some contacts say cooler weather is contributing to increased cow comfort. Spot milk volumes are tight, though availability is increasing. Some processors are bringing in milk loads from other nearby states. Demand is softening for Class I, but steady for Classes II and III.
Milk production is trending higher, amid cooler weather, in New Mexico. Some contacts say overall production remains down from this time last year. Some plant managers in the state say they continue to pull loads of milk from other states to meet their current production needs. Demand is steady across all Classes.
In the Pacific Northwest, milk production is steady to higher, and volumes are available to meet production needs. Some stakeholders say they are selling milk at below Class prices. A shortage of available tankers and drivers are causing some processors to move loads primarily in local markets. Across all Classes, demand is steady.
Milk production is strong in the mountain states of Idaho, Utah, and Colorado. Some contacts say current output is at or above previously forecasted levels. Spot loads of milk are being sold in local markets for below Class prices. Some stakeholders say they are offering better prices to purchasers who arrange their own transportation, due to the current shortage of available tankers in the area. With winter break approaching for some educational institutions in the area, Class I demand is softening. Class II and III demands are strong.
Demand for condensed skim is steady from contract and spot purchasers in the West. Condensed skim production is trending higher, amid strong regional milk availability. Cream is readily available, and some contacts report softening demand from spot purchasers. Lower cream multiples in recent weeks have caused some butter makers to utilize loads internally. Cream multiples were unchanged across the range this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.8370 - 3.5746
Multiples Range - All Classes: 1.0000 - 1.2600
Price Range - Class II; $/LB Butterfat: 3.1207 - 3.5746
Multiples Range - Class II: 1.1000 - 1.2600
