In California, farm level milk output is strong to steady in some parts of the state. In areas facing the regional challenges of flooding and overflowing rivers, farm level milk output is steady to lighter. Industry sources report some relocating of cows to drier dairies, causing decreased milkings per day. Throughout the state milk volumes are available for processing. Processing capacity has remained tightened in some areas with some regional flooding causing more transportation delays and unplanned downtime at processing facilities. Spot load purchases and sales at below Class prices remain noted by contacts. Class I demand remains lighter, while demand for all Classes remains steady. Some stakeholders note concern that if the heavy snowpack melts too rapidly there will be much heavier flooding in the weeks to come. According to the California Department of Water Resources, as of March 21, 2023, snowpack levels for Water Year 2022-23 are 227 percent of normal to date compared to historical averages. According to the California Department of Water Resources, as of March 21, 2023, the state has gotten 27.68 inches of precipitation for the current 2022-23 Water Year, up 8.99 inches from the historical average. According to the California Department of Water Resources, as of March 21, the estimated total reservoir storage was 26.90 million acre feet, which is 107 percent of the historical average for the month. Despite these above historical average levels, the California Department of Water Resources indicates 114 dry wells have been reported year to date.
Farm level milk output is steady in Arizona. Milk volumes are available throughout the state for bottling and other production needs. Some stakeholders report open capacity at plants and bringing in out of state milk to fill it. Contacts note spot load purchases and sales at below Class prices. Demand for all Classes is steady.
In New Mexico, farm level milk output is steady. Temperatures went down to the 30s and the state had some winter storm warnings this week. Throughout the state milk volumes are available for processing. All Classes have steady demand.
Farm level milk output in the Pacific Northwest is strong. However, stakeholders report production was down slightly from previous weeks. Ample milk volumes remain available throughout the area for bottling and other production facilities. Demand for Class I is lighter with approaching spring breaks for educational facilities. Demand for all other Classes remains steady.
In the mountain state of Idaho, farm level milk output is strong. In Utah and Colorado farm level milk output is steady. Temperatures went down to the 20s in Colorado and Utah had winter storm warnings. Throughout the area milk volumes are available for processing. Demand for Class I remains lighter, while demand for all other Classes remain steady.
Condensed skim milk demand is steady. Contract sales continue to be steady, while spot market activity is lighter. Availability of condensed skim milk is mixed. Some stakeholders report plentiful to balanced volumes, while others report tighter volumes with regional flooding causing unplanned downtime at processing facilities. Production schedules are strong with plenty of cream available. Cream multiplies slid down on the top end this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.3880 - 2.8895
Multiples Range - All Classes: 1.0000 - 1.2100
Price Range - Class II; $/LB Butterfat: 2.6029 - 2.8895
Multiples Range - Class II: 1.0900 - 1.2100
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