Overall, milk production is steady in California, despite notable week to week fluctuations for the state thus far this year. Contacts note preliminary records indicate milk output is slightly above anticipated levels for the month and compared to May of 2022. Additionally, preliminary records are noted to indicate May production holding up closely to April production by contacts. Unplanned downtime at some handling and manufacturing facilities has caused balancing difficulties for the Central Valley area. Stakeholders relayed some field areas have not been able to be planted and express concern that feed cost may go up. Demand for all Classes is steady.
Farm level milk output is steady in Arizona. However, contacts relay lower than anticipated production for the year thus far. Additionally, recent slight downticks have been noted by contacts as temperatures have gone into the 100s. Available open processing capacity has been filled with out of state volumes. Contacts relayed that some spot sales and purchases for Class IV milk are at below Class prices. Current demand for all Classes is unchanged, although some local decreases are anticipated with the upcoming holiday.
Milk production is steady in New Mexico. Milk supplies are ample compared to production needs and available throughout the state. Demand for all Classes is steady.
In the Pacific Northwest, farm level milk output is strong to steady. Cow comfort has improved, and contacts note milk production is back at anticipated levels. Milk supplies are ample to accommodate production needs and available throughout the state. Some spot sales and purchases are at below Class prices. All Classes have steady demand.
In the mountain states of Idaho, Utah, and Colorado milk production is strong. Flood warnings and snowpack melt in Idaho had minimal effects to cow comfort and milk output. Heavy to balanced volumes compared to processing capacities are reported by contacts. Some handlers relay Class II demand from ice cream manufacturers has increased. Demand for all Classes is steady overall.
Plentiful amounts of condensed skim milk are widely available for contract and spot sales. Contracted sales are steadily drawing on inventories, while spot market activity is moderate. Cream is widely available and plentiful with milk production strong to steady overall. Production schedules are strong. Cream multiples remained largely unchanged this week. Western U.S., F.O.B. Cream Price Range - All Classes; $/LB Butterfat: 2.4510 - 3.0147 Multiples Range - All Classes: 1.0000 - 1.2300 Price Range - Class II; $/LB Butterfat: 2.5736 - 3.0147 Multiples Range - Class II: 1.0500 - 1.2300