In California, milk production is trending steady to weaker. Milk output volumes in most of the state are declining rapidly as seasonally high temperatures hinder cow comfort. June 2023 farm level milk outputs are predicted to be higher than they were in June 2022. Milk production in the Central Valley has been steadier than it has been in other parts of the state. Some drying operations at balancing plants have been scaled down due to dwindling milk volumes. Class II demand is seasonally steady, as manufacturing of soft serve mixes has been strong while hard pack ice cream manufacturing is slightly weaker. Demand for all other Classes is steady. According to the California Department of Water Resources, the estimated amount of water in state reservoirs was 33-million-acre feet as of June 28, which is 118 percent of the historic average. Farmers can use full allocations of water for crop irrigation.
In Arizona, farm level milk output is lower due to high temperatures. Spot prices of milk are increasing after being sold at below Class prices in recent weeks. Demand for all Classes is steady.
In New Mexico, milk production is steady. Temperatures in the state have not affected farm level milk production. Demand for all Classes is steady and able to meet local manufacturing needs.
In the Pacific Northwest, farm level milk output is steady to stronger. There were some abnormally cool temperatures that were ideal for cow comfort and some mountainous areas received heavy rain and even some snow. The regular school session has been paused for the summer. Milk supplies are reportedly stronger than what is needed by local manufacturers. Contacts have reported that some spot sales have been below Class prices. Class II demand is strong due to ice cream manufacturing. Demand for all other Classes is steady.
In Idaho, farm level milk outputs are steady to stronger. There are strong cream supplies available in Idaho. In the other mountain states of Colorado and Utah, farm level milk output is steady. Milk volumes are adequate for local manufacturing needs. Demand for all Classes is steady. Cream multiples moved higher this week due to increases in ice cream manufacturing operations.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.4931 - 3.0630
Multiples Range - All Classes: 1.0500 - 1.2900
Price Range - Class II; $/LB Butterfat: 2.8968 - 3.0630
Multiples Range - Class II: 1.2200 - 1.2900
