Milk production is steady in California. Milk supplies are slightly heavy to in balance with processing needs. Contracted load purchasers had demand for added volumes with little downtime at manufacturing facilities. Class I milk demand is lighter as educational facilities have started summer breaks. Class II demand has increased with ice cream manufacturers busy schedules. Class III demand is strong to steady, while Class IV demand is steady. According to the California Department of Water Resources, as of June 7, 2023, the estimated total statewide reservoir storage was 31.90 million acre feet, which is 111 percent of the historical average. With water reservoirs continuing above historical levels, farmers are more confident in having needed water for crop irrigation. According to the California Department of Water Resources, as of June 6, 2023, the state has gotten 31.22 inches of precipitation for the current 2022-23 Water Year, up 8.66 inches from the historical average.
In Arizona, farm level milk output is steady to lower. Contacts note slight downticks in milk production as temperatures have pushed past the 100-degree mark. Out of state milk volumes have filled open processing capacity, as contacts indicate lower than anticipated milk production for last month. Demand for Class I is lighter as educational facilities are in summer breaks, while all other Classes have steady demand.
Milk production is steady in New Mexico. Temperatures kept near the 80 degree mark. Volumes are ample compared to production needs. Class I demand is lighter with educational facilities entering summer breaks, while demand is steady for all other Classes.
Farm level milk output in the Pacific Northwest is steady. The eastern side of Washington state had higher temperatures compared to the western side, but good cow comfort remained. Milk volumes can accommodate processing needs. Handlers indicate Class II demand from ice cream manufacturers has increased. Class I, III, and IV demand is unchanged. Stakeholders relay some early feed cuttings have been harvested and stored.
Milk production in the mountain states of Idaho, Utah, and Colorado is strong to steady. Colorado has stayed cooler and has had some larger amounts of rain, but effects to milk output and farming operations were minimal. Supplies are reportedly heavy to balanced compared to processing needs. Class I demand is lighter with educational facilities entering summer breaks, while some handlers relay Class II demand increases for ice cream manufacturing. Class III and IV demand is unchanged.
Plenty of condensed skim milk is available. Contracted sales are steady and spot load purchasing is moderate. Cream is widely available with strong to steady milk output and production schedules. Although cream multiples are pushing upward, volumes are widely available for processing needs.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.4488 - 3.1100
Multiples Range - All Classes: 1.0000 - 1.2700
Price Range - Class II; $/LB Butterfat: 2.5712 - 3.1100
Multiples Range - Class II: 1.0500 - 1.2700
