Farm level milk output is steady in California. Contacts have shared that milk volumes coming from certain locales are lower than were anticipated for this time of year due to precipitation and flooding. Temperatures are warming across the state and snowpack is melting quickly. Water is being emptied from reservoirs in order to make room for additional snow melt, and river levels remain high, but flooding is less of a concern. Certain water districts are encouraging farmers to irrigate as much as possible in areas with comfortable to higher water levels. Demand for all Classes is unchanged. Some condensed skim and spot milk loads are fetching prices under Class.
Farm level milk output is steady in Arizona. Temperatures have remained steady, improving cow comfort. Milk volumes are noted to be above local processing needs and some handlers are looking to other western processors to sell spot loads. Contacts have relayed that Class III and IV spot prices are below Class prices. Demand for all Classes is steady.
Milk production is steady in New Mexico. Milk supplies are balanced in certain areas but remain heavy compared to processing needs in other areas. Demand for all Classes is unchanged.
Farm level milk output is variable in the Pacific Northwest. Some unseasonably warm temperatures have proven to be a hinderance to cow comfort and contacts have shared that their milk volumes are down slightly from what was forecasted. Demand for all Classes is steady, though some Class II demand has plateaued as ice cream demand is not as strong as this time last year. Some market stakeholders have reported tanker and driver shortages.
In the mountain states of Idaho, Utah, and Colorado, farm level milk production is steady to stronger. Demand for all Classes remains steady, and there are ample milk volumes available for manufacturing needs. Some scheduled maintenance and plant downtime persists. Contacts have shared that skim milk and cream are plentiful throughout the region. Additional loads are available beyond contracted sales and spot market activity is steady. Some areas are able to handle spot capacity from other states that are approaching or at capacity. Regional manufacturing is steady to stronger.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.4055 - 3.0069
Multiples Range - All Classes: 1.0000 - 1.2500
Price Range - Class II; $/LB Butterfat: 2.5258 - 3.0069
Multiples Range - Class II: 1.0500 - 1.2500
Information for the period May 15 - 19, 2023, issued weekly
Secondary Sourced Information:
Milk pooled on the California Federal Milk Marketing Order 51 totaled 2.836 billion pounds in March 2023. Class I utilization was 423.4 million pounds and accounted for 14.9 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was $18.79, down 31 cents from February 2023.
Milk delivered to the Pacific Northwest Federal Milk Marketing Order 124 totaled 739.3 million pounds in March 2023. Class I producer milk was 141.7 million pounds and accounted for 19.2 percent of total producer receipts. The uniform price at test for March 2023 was $21.95, down 49 cents from February 2023.
Milk delivered to the Arizona Federal Milk Marketing Order 131 totaled 473.7 million pounds in month year. Class I producer milk was 124.2 million pounds and accounted for 26.2 percent of total producer receipts. The uniform price at test for March 2023 was $19.24, down 75 cents from February 2023.
Milk delivered to the Southwest Federal Milk Marketing Order 126 totaled 1.224 billion pounds in March 2023. Class I utilization was 325.5 million pounds and accounted for 26.6 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to handlers in Dallas/Tarrant counties in Texas was $19.44, down 34 cents from February 2023.
