Farm level milk output is steady in California. However, contacts report lower than anticipated volumes due to the many heavy precipitation events the state experienced thus far this year, along with some unbalanced plants in the Central Valley area from the lower than anticipated volumes. Warmer temperatures at higher altitudes are causing faster paced snow melt. Stakeholders note sentiments of concern regarding snowpack melt that may cause further flooding as water infrastructure damaged earlier this year is not completely repaired, reservoirs have small amounts of remaining capacity, and rivers have high volumes. Transportation is problematic in areas where heavier volumes need to be transported and alternative routes are needed. All Classes have unchanged demand.
In Arizona, milk production is steady. Temperatures reached into the 100s during the week, but lower overnight temperatures and cool mornings have supported good overall cow comfort. Impacts on current milk production were minimal. Stakeholders note milk production is down compared to this time a year ago from preliminary data. However, milk volumes are ample compared to bottling and production needs. Manufacturers report bringing in out of state milk to keep production schedules at max capacity. Class III and IV spot loads at below Class prices are reported by contacts. Demand for all Classes is unchanged.
Milk production is steady in New Mexico. Milk volumes are available and ample compared to production needs throughout the state. Demand is steady for all Classes.
Farm level milk output is steady in the Pacific Northwest. Milk supplies are available for bottling and production needs. Milk volumes are reported as slightly heavy to balanced compared to current manufacturing needs. Spot load purchases and sales at below Class prices are reported by contacts. Class II demand is strong as ice cream manufacturers ramp up seasonal production. All other Classes have steady demand.
In the mountain states of Idaho, Utah, and Colorado farm level milk output is steady. Utah received some snowy weather, but overall cow comfort remained good and impacts on milk handling were minimal. Throughout the mountain states milk supplies are available for bottling and processing needs. Some plant shutdowns for maintenance contributed to heavier than balanced volumes for a few production facilities. Demand is steady for all Classes.
Contacts report available condensed skim milk volumes are heavy to balanced compared to production needs of processors. Condensed skim milk channels through contract sales steadily, while spot market activity is steady to light. Plentiful amounts of available cream keep production schedules strong. Cream multiples moved higher this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.3930 - 3.1109
Multiples Range - All Classes: 1.0000 - 1.3000
Price Range - Class II; $/LB Butterfat: 2.5127 - 3.1109
Multiples Range - Class II: 1.0500 - 1.3000
