Thursday, March 16, 2023

Fluid Milk and Cream - Western U.S. Report 10

In California, farm level milk output is strong to steady. Some stakeholders note     preliminary reports indicate milk production for February moved up compared to January.     However, they note preliminary reports indicate milk production for February was still below     forecasted levels. Availability of milk volumes is mixed. The Central Valley area contacts     report balanced milk volumes for bottling and production needs, while other stakeholders     report tighter availability of milk volumes due to weather events causing road closures in     parts of California. Contacts report snow in the northern part of the state causing delivery     problems and some unplanned downtime at plants. Demand for all Classes is unchanged. 
Farm level milk output is steady to lighter in Arizona. Available milk volumes remain ample for bottling and other production facilities throughout the state. All Classes have steady     demand. 
In New Mexico, farm level milk output is steady. Throughout the area milk volumes are available for processing. Demand for all Classes is steady. Farm level milk output in the 
Pacific Northwest is steady with more favorable cow comfort weather this week. Contacts     report production is on pace with forecasted levels. Milk volumes are ample throughout the     area. Some stakeholders report Class IV spot loads at below Class prices. All Classes have     steady demand. 
In the mountain states of Idaho and Colorado, farm level milk output is steady. In Utah, with more favorable cow comfort weather, farm level milk output is strong to steady. Milk volumes are available throughout the area for processing. Demand is steady for all Classes. 
Condensed skim milk demand is steady. Contract sales are steady, while spot market activity has become lighter. Availability of condensed skim milk is mixed. Some stakeholders report balanced volumes, while others report tighter volumes from weather events causing road closures in parts of California. Plenty of cream is available for busy production schedules to be kept. Lower end cream multiples moved down this week, remaining below a flat market.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.1546 - 2.8967
     Multiples Range - All Classes:               0.9000 - 1.2100
     Price Range - Class II; $/LB Butterfat:      2.6095 - 2.8967
     Multiples Range - Class II:                  1.0900 - 1.2100


     Information for the period March 6 - 10, 2023, issued weekly

     Secondary Sourced Information:

     Federal Milk Marketing Orders

Milk delivered to the Pacific Northwest Federal Milk Marketing Order 124 totaled 709.4     million pounds in January 2023. Class I producer milk was 144.0 million pounds and accounted     for 20.3 percent of total producer receipts. The uniform price at test for January 2023 was     $24.20, down $2.30 from December 2022.

Milk delivered to the Arizona Federal Milk Marketing Order 131 totaled 445.6 million pounds     in January 2023. Class I producer milk was 120.7 million pounds and accounted for 27.1     percent of total producer receipts. The uniform price at test for January 2023 was $22.33,     down $1.50 from December 2022.

Milk delivered to the Southwest Federal Milk Marketing Order 126 totaled 1,280.8 million     pounds in January 2023. Class I utilization was 341.2 million pounds and accounted for     26.64 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to     handlers in Dallas/Tarrant counties in Texas was $21.12, down $1.03 from December 2022.



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...