Thursday, January 26, 2023

Fluid Milk and Cream - Western U.S. Report 4

In California, farm level milk output is steady to light. Some stakeholders note not being     sure yet what the full impact of dry lots turning into mud lots from the multiple heavy     rainfalls the state received during January thus far this year will be. Available milk     volumes continue to be worked through. All Classes have steady demand. Although some     stakeholders note January 2023 preliminary milk production reports show increases compared     to December, 2022, below forecasted milk production for January is also noted. January 2023     preliminary milk production reports showing decreased milk production compared to January     2022 is noted by some stakeholders. According to the California Department of Water     Resources, as of January 25, 2023, the estimated total statewide reservoir storage was 21.80     million acre feet, which is 98 percent of the historical average for the month. According to     the California Department of Water Resources, as of January 25, 2023, snowpack levels for     water year 2022-23 are 218 percent of normal to date compared to historical averages.  
Farm level milk output is steady to light in Arizona. Some stakeholders report bringing in extra milk from the southern part of the state at below Class IV prices and continuing to look for discounted out of state spot loads to fill available processing time. Some stakeholders note milk production is down compared to last year. Demand is steady across all Classes. 
New Mexico had more favorable weather for cow comfort this week and milk production is steady.     Processors work through available milk volumes. All Classes have steady demand. 
Favorable weather for cow comfort is helping the Pacific Northwest, with steady farm level milk     output. Plenty of milk is available for processing throughout the area. No transportation     problems are noted by stakeholders. Demand is unchanged for all Classes. 
Farm level milk output in the mountain states of Idaho, Utah and Colorado is steady. Throughout the area plenty of milk volumes are available for processing. Some stakeholders report selling spot loads to out of state purchasers at below Class prices. Demand is steady to light across all Classes. 
Demand for condensed skim milk is higher. Spot load sales are steady. Plentiful available cream volumes continue to be worked through by butter makers running busy production schedules. Lower end cream multiplies for all Classes remained at a flat market this week. Higher end cream multiplies were unchanged.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.3581 - 2.8297
     Multiples Range - All Classes:               1.0000 - 1.2000
     Price Range - Class II; $/LB Butterfat:      2.5939 - 2.8297
     Multiples Range - Class II:                  1.1000 - 1.2000



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...