Fluid Milk and Cream - Western U.S. Report 2

California milk production remains steady, despite some heavy rains and flooding. Although     contacts report some processors have experienced plant down time due to the recent heavy     rains and flooding, no major disruptions have been noted. Processors continue to work     through ample available milk volumes while a close eye is being kept on the predicted     upcoming additional storms. Demand for all Classes remains steady. According to the National     Weather Service Weather Prediction Center, the majority of California has seen rainfall     totals 400% to 600% above average values over the past several weeks. According to the     California Department of Water Resources, as of January 10, 2023, the state has gotten 14.45     inches of precipitation for the current 2022-23 Water Year, up 4.76 inches from the     historical average. However, California still remains in a state of drought. 

In Arizona, farm level milk output is steady to higher. Although milk volumes are available for processing, some processors report bringing in loads of milk from outside the state at below Class prices. Demand is steady across all Classes. 

New Mexico has steady milk production. Processors continue to work through available milk volumes. Demand is unchanged for all Classes. A somewhat mild winter thus far for the Pacific Northwest is contributing to steady to higher milk output. Milk is available for processing throughout the area. Demand is steady for all Classes. 

Favorable weather has helped cow comfort, contributing to steady to higher milk output for the mountain states of Idaho, Utah and Colorado. Plenty of milk is available for processing throughout the area. Demand is unchanged for all Classes. 

Condensed skim milk demand is unchanged. Condensed skim milk sales are steady in the spot market. Some stakeholders report purchasing spot loads from outside their local network areas. Ample cream volumes are available and butter production remains steady. Higher end cream multiples moved lower compared to last week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.1425 - 2.8567
     Multiples Range - All Classes:               0.9000 - 1.2000
     Price Range - Class II; $/LB Butterfat:      2.4996 - 2.8567
     Multiples Range - Class II:                  1.0500 - 1.2000