Thursday, January 5, 2023

Fluid Milk and Cream - Western U.S. Report 1

California milk production continues to increase. Stakeholders report availability of     plentiful milk volumes with supplies remaining in decent balance with demands. Processors     say some open capacity beyond production needs is locally available if needed. Some     processors report limited spot sales of milk following the end of year holidays. Demands for     all Classes are unchanged. 
In Arizona, cool weather is contributing positively to cow comfort and farm level milk output. Milk volumes are available for processing, though some plant managers say they continue to purchase loads of milk from other parts of the region at below Class prices. Demand is unchanged across all Classes. 
Cooler weather in New Mexico is contributing to increased cow comfort and strengthening milk production. Despite this, some processors in the state indicate loads of milk are being brought in from other areas to accommodate current production needs. Demand is steady across all Classes. 
Milk output is unchanged in the Pacific Northwest. Stakeholders say milk is plentiful in the area. Some plant managers say loads of milk are being sold at below Class prices in local markets due to limited tanker availability. Across all Classes, demand is unchanged. 
Milk production is steady in the mountain states of Idaho, Utah, and Colorado. Processors report there is plenty of milk available. Some stakeholders say they continue to offer spot loads of milk at below Class prices. Demand is steady across all Classes. 
Contracted condensed skim milk demand is starting the year with a strong uptick. Some stakeholders report additional loads added to Q1 contracts. Spot sales of condensed skim milk are steady but having a slower start for the year compared to contracted loads. The West region has cream volumes available and churning for butter production remains steady. Cream multiplies across the range were unchanged for the week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.1420 - 2.9988
     Multiples Range - All Classes:               0.9000 - 1.2600
     Price Range - Class II; $/LB Butterfat:      2.6180 - 2.9988
     Multiples Range - Class II:                  1.1000 - 1.2600



Monday Closing Dairy Market Update - October Cheese and Butter Inventories Declined

MILK: Traders were uncertain as to how to interpret the moving of spot prices today. Pressure was put on Class III futures after spo...