In California, farm level milk output is steady to lower. Milk supplies are in better balance for the Central Valley area. However, milk supplies are slightly heavy to balanced overall for the state. Some unplanned downtime at production facilities is noted by contacts. Contacts relayed that some spot sales and purchases have been at below Class prices. Handlers note preliminary records indicate milk output is above anticipated levels for June, but down compared to May. Additionally, June 2023 compared to June 2022 is noted as higher thus far. Demand for all Classes is steady.
Milk production in Arizona is steady to lower. Contacts note some downticks in output as temperatures in the state only decreased slightly from the over 100-degree mark. Some volumes brought in to fill open processing capacity have been at below Class prices. Class II demand from ice cream manufacturers is heavier, while all other Classes have steady demand. In New Mexico, farm level milk output is steady. Temperatures kept in the mid-80s this week so impacts on production and farming operations were minimal. Volumes are adequate for handlers' needs. Demand is steady for all Classes.
Milk production in the Pacific Northwest is steady. Seasonal temperatures stayed on the cooler end this week aiding cow comfort. Contacts note preliminary records indicate output is at anticipated volumes. Volumes are reportedly slightly heavy to balanced compared to processing needs. Class I demand is lighter as more educational facilities are starting summer breaks, while Class II demand from ice cream manufacturers is heavier. Demand is steady for Class III and IV. Stakeholders relay a second round of harvested feed cuttings is expected soon.
Farm level milk output in the mountain states of Idaho and Utah is strong, while the mountain state of Colorado is steadier. Utah and Colorado had some larger amounts of rain, but effects to output and farming operations were minimal. Volumes are reportedly heavy to balanced compared to processing needs. Contacts relayed that some spot sales and purchases at below Class prices have taken place. Some handlers relay increases for Class II demand from ice cream manufacturers. Demand from all other Classes is steady.
Condensed skim milk is widely available. Contracted sales are steady and spot market activity is moderate. Plenty of cream is available with steady milk production for most of the region. Top end cream multiples slid down slightly this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.3745 - 2.9919
Multiples Range - All Classes: 1.0000 - 1.2600
Price Range - Class II; $/LB Butterfat: 2.4932 - 2.9919
Multiples Range - Class II: 1.0500 - 1.2600
