Thursday, December 29, 2022

Fluid Milk and Cream - Western U.S. Report 52

In California farm level milk output is steady to higher. Some stakeholders say output is     down compared to December of 2021. Despite this, processors say milk is available to meet     their current production needs. Class I sales are steady to higher as some educational     institutions are ordering milk before students return from winter break. Demands for all     other Classes are unchanged. 
Cooler weather in Arizona is contributing to increased cow comfort and strengthening milk production. Some processors say they are purchasing loads of milk from other parts of the region at below Class prices. Across all Classes, demand is unchanged. 
Milk production is steady to higher in New Mexico, though contacts report output remains down compared to this time last year. Some processors in the state say they are sourcing loads of milk from other areas to meet their current production needs. Demand is steady across all Classes. 
Milk production is steady to lower in the Pacific Northwest. Some contacts indicate cold and snowy weather has impacted production. Cow comfort is less than ideal with temperatures reaching below 10 degrees in eastern Washington state, last week. Processors say milk is plentiful. Some spot loads are being sold for under Class prices in local markets due to bad weather and limited tanker availability. Demand is unchanged for all Classes. 
In the mountain states of Idaho, Utah, and Colorado milk production is unchanged. Some stakeholders say milk production in Idaho is currently outpacing output this time last year. Milk is available for processing and some contacts say loads are being sold at below Class prices. 
Condensed skim contract and spot sales are steady to lighter in the West. Some stakeholders say spot load of condensed skim are being offered at discounted prices. Cream volumes are available throughout the western region. Some butter makers say they are using cream internally to run production schedules as opposed to selling it at current multiples. Cream multiples were unchanged at the top of the range, while the bottom moved lower this week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.2761 - 3.1865
     Multiples Range - All Classes:               0.9000 - 1.2600
     Price Range - Class II; $/LB Butterfat:      2.7819 - 3.1865
     Multiples Range - Class II:                  1.1000 - 1.2600




Tuesday Closing Dairy Market Update - Global Dairy Trade Gains 1.8 Percent

MILK Milk futures are in line with underlying cash and moving in relationship with it. Futures did not move substantially outside of...