Although a few contacts relay a notable decrease in milk production from the previous week, output is steady overall. Handlers note preliminary records indicate milk output is above anticipated levels for May, but slightly down compared to April. Additionally, May 2023 compared to May 2022 is noted as higher. Supplies and processing capacity in the Central Valley area of the state are in good balance and contracted load purchasers had demand for additional volumes as unplanned downtime at manufacturing facilities was less prevalent. Demand for all Classes is strong to steady. According to the California Department of Water Resources, as of May 31, 2023 the estimated total statewide reservoir storage was 31.20 million acre feet, which is 108 percent of the historical average.
In Arizona, farm level milk output is steady. Contacts note recent slight downticks as temperatures remained near the 100-degree mark. Some open processing capacity has been filled with out of state volumes, as contacts indicate milk production is lower than anticipated to finish the month. Handlers relay some manufacturers were less active taking in milk volumes. Demand for all Classes was still steady, despite the holiday weekend.
In New Mexico, milk production is steady. Temperatures held in the lower part of the 80s and impacts to cow comfort were minimal. Milk supplies are ample compared to production needs. Demand for all Classes is unchanged.
Farm level milk output in the Pacific Northwest is strong to steady. The eastern portion of Washington state had higher temperatures in comparison to the western portion, but cow comfort remained good. Milk production above forecasted levels is noted by stakeholders. Milk supplies can accommodate processing needs. Handlers indicate increases in Class II demand from ice cream manufactures. Class I, III, and IV demand is steady.
Milk production is the mountain states of Idaho, Utah, and Colorado is strong. Persistent flood warnings and snowpack melt had minimal effects to milk output and farming operations in Idaho. Volumes are reported as heavy to balanced compared to processing needs. Some handlers relay increases in Class II demand from ice cream manufacturers. Demand for all other Classes is unchanged.
Condensed skim milk is widely available. Contracted sales are steady, while spot market activity is moderate. Cream volumes are plentiful, with strong to steady milk output and production schedules. Although cream multiples had slight downward movement on the top end, a number of cream contacts said multiples were generally steady, depending on the location.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.4345 - 2.9457
Multiples Range - All Classes: 1.0000 - 1.2100
Price Range - Class II; $/LB Butterfat: 2.5562 - 2.9457
Multiples Range - Class II: 1.0500 - 1.2100
