Thursday, April 20, 2023

Fluid Milk and Cream - Western U.S. Report 16

California milk production is strong to steady. Some areas are maintaining stronger farm     milk production trends, while other areas impacted by the earlier flooding get back to     steadier milk production trends. Contacts note preliminary reports indicate milk output for     April 2023 is slightly above forecasted levels. Milk volumes are reported as heavier to     balanced compared to bottling and production needs by contacts. Plants in the Central Valley     area that were shut down from the earlier flooding are reportedly back to previous demand     levels. Throughout the state milk volumes are available for bottling and processing needs.     However, stakeholders note transportation is problematic for parts of California, with some     areas having heavy volumes to be transported. Demand for all Classes is steady, as     educational facilities in the state have cycled through scheduled spring breaks. According     to the California Department of Water Resources, snowpack amounts are 251 percent of normal     to date as of April 19, 2023, for the current 2022-23 Water Year. 
Farm level milk output in Arizona is steady. Temperatures reached the lower 90s in the state this week. Cool mornings supported good cow comfort and had minimal impacts on current milk production. Some stakeholders report bringing in out of state milk volumes to fill open processing capacity. Class III and IV spot load purchases and sales are noted at below Class prices by contacts. All Classes have steady demand. 
Milk production in New Mexico is steady. Milk volumes are available to meet current bottling and production needs. Demand for all Classes is unchanged. 
In the Pacific Northwest, milk production is steady. Milk volumes are available throughout the area for bottling and processing needs. Slightly heavy to balanced volumes compared to current production needs are reported by contacts. Spot load purchases and sales are noted at below Class prices by contacts. Demand for all Classes is steady. 
Farm level milk output in the mountain states of Idaho, Utah, and Colorado is steady. The mountain states area received some snow this week, but impact on milk handling was minimal. Cow     comfort is good overall. Throughout the area milk volumes for bottling and processing needs     are available. All Classes have unchanged demand. 
Contacts report condensed skim milk volumes as heavy to balanced compared to production needs. Contracted sales of condensed skim milk are steady. Spot load sales of condensed skim milk are steady to light. Plentiful amounts of cream are available to keep strong production schedules. Cream multiples moved higher this week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.3495 - 2.9839
     Multiples Range - All Classes:               1.0000 - 1.2700
     Price Range - Class II; $/LB Butterfat:      2.5610 - 2.9839
     Multiples Range - Class II:                  1.0900 - 1.2700



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...