Milk production in California is steady to higher. Some contacts say overall output remains down compared to this time last year but is meeting or exceeding previous forecasts. Milk is available to meet current processing needs. Winter breaks for educational institutions in the state are contributing to lighter Class I demand. Steady demand is present for all other Classes.
In Arizona, farm level milk output is unchanged from last week. Contacts report milk production is below some previously forecasted levels. Processors say they are working through available supplies of milk, and some are purchasing additional loads for below Class prices from sellers in other parts of the region. Class II and III demands are steady, while Class I demand is softening.
Cooler weather in New Mexico is contributing to steady to higher milk production. The NASS Milk Production report released on December 19th showed milk production in the state was down by 4.3 percent in November, when compared to 2021. Some processors in the state say local volumes are sufficient to meet their current production needs, while others continue to purchase milk from other states to run busy schedules. Across all Classes, demand is steady.
Milk production is steady to lower in the Pacific Northwest. Some contacts suggest cold weather early this week will have a negative impact on milk production. Milk is available for processing, and some stakeholders are reporting sales at below Class prices. Some processors say snowy weather and limited tanker availability are causing them to sell loads of milk in local markets. Demand is steady for Classes II and III, but lighter for Class I.
Inclement weather has moved into the mountain states of Idaho, Utah, and Colorado and some stakeholders are concerned with how this will impact milk production. Processors say there is plenty of milk available, and loads are being offered at below Class prices. Demand is steady across all Classes. Condensed skim contract purchasers are pulling towards the lower ends of their availability, in the West.
Contacts say contract and spot demand for condensed skim is softer this week as purchasers are preparing for downtime around the year-end holidays. Cream is widely available in the region. Stakeholders say demand is mixed ahead of the holidays. Some processors are reducing their purchasing, while others are utilizing cream available at lower prices to operate busy production schedules. Some plant managers say loads of cream are being sold at discounted prices due to limited tanker availability. Cream multiples moved lower on the bottom, while the top was unchanged.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.6467 - 3.5104
Multiples Range - All Classes: 0.9500 - 1.2600
Price Range - Class II; $/LB Butterfat: 3.0646 - 3.5104
Multiples Range - Class II: 1.1000 - 1.2600
