Milk production is steady to lighter in California. Some slow downs in farm level milk production and cows going from the milking string into hospital pens due to the heavy rains have been reported, with the northern part of the state feeling a heavier impact. Contacts report the Central Valley area of the state remains in decent balance, with some open plant capacity available, while other areas have had milk brought in at below Class prices. Processors continue working through available milk volumes. Demand is steady for all Classes. According to the California Department of Water Resources, as of January 17, 2023, the state has gotten 17.87 inches of precipitation for the current 2022-23 Water Year, up 7.30 inches from the historical average. Despite some eastern central parts edging above near normal for drought status according to the California Department of Water Resources, California remains in a state of drought.
Steady to higher farm level milk output continues in Arizona. Processors continue to work through available milk volumes. Loads of milk coming from outside the state at below Class prices are reported from some processors. Demand for all Classes is steady.
New Mexico continues steady milk production. Available milk volumes continue to be worked through by processors. All Classes have unchanged demand.
A somewhat milder winter continues in the Pacific Northwest, with some recent higher than usual temperatures. Milk output is steady to higher. Throughout the area, milk is available for processing. Steady demand for all Classes remains.
Cow comfort continues to be helped with favorable weather, keeping steady to higher milk output going for the mountain states of Idaho, Utah and Colorado. Throughout the area plenty of milk is available for processing. Demand for all Classes remain unchanged.
Condensed skim milk demand is higher. Some contacts report a strong uptick, with additional loads being added to Q1 contracts. Spot market sales are steady. Busy production schedules are running with butter makers to work through plentiful available cream volumes. Lower end cream multiplies moved up to a flat market this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.4270 - 2.9124
Multiples Range - All Classes: 1.0000 - 1.2000
Price Range - Class II; $/LB Butterfat: 2.6697 - 2.9124
Multiples Range - Class II: 1.1000 - 1.2000
