Thursday, February 23, 2023

Fluid Milk and Cream - Western U.S. Report 8

In California, farm level milk output stays mixed for this week. Some stakeholders report     production is strong, while other stakeholders report steady production and paddocks that     are not fully dried up from the heavy rains California received to start 2023. Strong to     steady milk volumes are available throughout the state. Milk availability in the Central     Valley has loosened up over this past week. While Class III demand is steady, with an uptick     in increased production schedules by cheesemakers, demand for all other Classes is strong to     steady. Some contacts report the additional rains received in the state have allowed for     more irrigation. However, contacts also note the state is not out of a drought. According to     the California Department of Water Resources, as of February 21, 2023, the state has gotten     18.91 inches of precipitation for the current 2022-23 Water Year, up 3.69 inches from the     historical average. 
In Arizona, farm level milk output is steady. Milk is available throughout the area. Contacts report regionally balanced supplies for bottling and other production facilities. Class III demand had more activity as some cheesemakers increased production schedules. Demand for all other Classes is unchanged. 
Farm level milk output is steady in New Mexico with more favorable weather for cow comfort. Throughout the area milk volumes are available for processing. All Classes have steady demand. 
In the Pacific Northwest, farm level milk output is strong. Contacts report favorable cow comfort weather has contributed to milk production maintaining forecasted levels. Plentiful milk volumes are available throughout the area. Class III demand is strong to steady. Demand for all other Classes is steady. 
In the mountain states of Idaho and Utah farm level milk output is steady. Colorado farm level milk output is steady to lighter as the state had some unfavorable cow comfort weather. Colorado received some near single digit temperatures and the northwestern part of the state has received winter storm warnings. Regional available milk volumes remain ample. Demand is unchanged for all Classes. 
Condensed skim milk demand is steady. Spot market activity remains light, while contract sales are steady. Regional availability of condensed skim milk is reported as widely available to balanced by contacts. Plentiful to balanced cream volumes are regionally available for producers to keep strong production. Cream multiples were unchanged this week.


     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.6394 - 2.9300
     Multiples Range - All Classes:               0.8500 - 1.2100
     Price Range - Class II; $/LB Butterfat:      2.0583 - 2.9300
     Multiples Range - Class II:                  1.0900 - 1.2100




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...