In California, farm level milk output remains strong to steady in some parts of the state. Farm level milk output is steady to lighter in areas up against regional challenges of continued flooding and overflowing rivers. Contacts report further redistributing of cows to drier dairies. Some stakeholders note increased production for March compared to last month from preliminary reports, but also below forecasted levels for March thus far. Milk volumes are available throughout the state for processing. In the Central Valley area, the flooding caused reductions in processing capacity, creating challenges with balancing supply and demand. Contacts report plant shutdowns and loss of power, along with transportation delays as current flooding caused the need to use alternative routes. Spot load purchases and sales at below Class prices continue being reported. Class I demand is lighter as educational facilities go through their respective spring break schedules, while demand for all other Classes remains steady. Despite additional increases in snowpack levels, reservoir storage amounts, and precipitation amounts, the California Department of Water Resources also indicates the number of dry wells reported year to date has increased to 123.
In Arizona, farm level milk output is steady. Throughout the state milk volumes are available for bottling and other production needs. Stakeholders report some open processing capacity and filling it with loads brought in from out of state. Spot load purchases and sales at below Class prices remain reported from contacts. Demand for all Classes is steady.
Farm level milk output in New Mexico is strong to steady. Cow comfort has improved with winter storm warnings leaving the state this week. Milk volumes are available throughout the state for processing. All Classes have steady demand.
In the Pacific Northwest, farm level milk output is strong. Milk volumes for bottling and processing needs are plentiful. Class I demand is lighter as educational facilities throughout the Pacific Northwest cycle through regional spring breaks. Demand for all other Classes remains steady.
In the mountain states of Idaho, Utah, and Colorado, farm level milk output is strong to steady. Colorado continued to have some temperatures down into the 20s and Idaho had winter storm warnings. Plentiful milk volumes are available throughout the area. Lighter demand for Class I remains, while all other Classes have steady demand.
Contract sales of condensed skim milk are steady, while spot market activity continues to be lighter. Condensed skim milk availability is mixed. Some stakeholders report plenty of volume is available, while others report limited opportunities with regional flooding causing plant shutdowns, unplanned downtime at processing facilities and longer transportation times. Plenty of cream is available for production schedules to remain strong. Cream multiplies increased on the top end this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.3780 - 2.9012
Multiples Range - All Classes: 1.0000 - 1.2200
Price Range - Class II; $/LB Butterfat: 2.5920 - 2.9012
Multiples Range - Class II: 1.0900 - 1.2200
