In California, milk production is steady to lower. Handlers note preliminary records indicate milk output is above anticipated levels for June 2023 and higher for June 2023 compared to June 2022. However, handlers also note preliminary records indicate milk output is down compared to last month and following seasonal week to week decreases. Volumes are available throughout the state and in good balance with manufacturing needs. Class II demand from ice cream manufacturers is less active this week, while all other Classes have steady demand. Stakeholders relay corn harvests will be delayed from late plantings. According to the California Department of Water Resources, as of June 21, 2023, the estimated total statewide reservoir storage was 32.70 million acre feet, which is 116 percent of the historical average. Current above historical average reservoir levels are helping farmers get needed full allocations of water for crop irrigation. According to the California Department of Water Resources, as of June 20, 2023, the state has gotten 31.52 inches of precipitation for the current 2022-23 Water Year, up 8.80 inches from the historical average.
Farm level milk output is steady to lower in Arizona. Temperatures were back over the 100-degree mark for a majority of the week, reaching nearly 110 degrees at its peak. Contacts relayed that some spot sales and purchases have been at below Class prices. Demand for all Classes is steady.
In New Mexico, milk production is steady. Temperatures moved into the low 90s during the week, but impacts to output volumes were minimal. Volumes are available to meet manufacturer's needs. Demand is unchanged for all Classes.
Farm level milk output in the Pacific Northwest is strong to steady. Seasonal temperatures remained on the cooler end this week, aiding in continued favorable cow comfort. Volumes are noted as slightly heavy to balanced compared to handling needs. Contacts relayed that some Class IV spot sales and purchases have been at below Class prices. With ice cream production schedules less active this week, Class II demand is lighter. Demand for Class I, III, and IV volumes are steady.
In the mountain states of Idaho and Utah farm level milk output is strong to steady, while in Colorado production is steady. Stakeholders have relayed Colorado has had slight downticks in milk output recently. Volumes are reportedly slightly heavy to balanced compared to processing needs. All Classes have steady demand.
Plenty of condensed skim milk is available. Contracted sales are steadier, while spot market activity is more moderate. Although a few stakeholders relay expected slight near-term tightness in cream, plenty is available. Cream multiples moved higher this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.3670 - 3.0771
Multiples Range - All Classes: 1.0000 - 1.3000
Price Range - Class II; $/LB Butterfat: 2.4854 - 3.0771
Multiples Range - Class II: 1.0500 - 1.3000
