In California, milk production is steady to lower. Week to week decreases are noted as seasonally increasing temperatures decrease cow comfort. However, handlers relay preliminary records indicate June milk output maintained enough strength to be above anticipated levels. Handlers also relay preliminary records indicate higher June 2023 production compared to June 2022. Although the Central Valley area has some open processing capacity, farm milk supplies are balanced compared to manufacturing needs. Contracted loads had higher demand, leaving less volume for spot load purchases. Seasonal Class II demand is steady from soft serve and hard pack ice cream manufacturing. Demand for all other Classes is unchanged.
Farm level milk output in Arizona is lower. Recent week to week production is trending notably downward as temperatures continue to climb upward overall. Temperatures in the state reached 115 degrees this week. Volumes are available to accommodate manufacturing needs. Spot load activity is light to quiet as industry sources relay hotter and more humid conditions in the south midwestern part of the country have reduced surpluses. Demand for all Classes is steady.
In New Mexico, milk production is steady to lower. Temperatures remained in the 90s and climbed to just shy of the 100 degree mark. Volumes are available to meet local handler needs. All Classes have steady demand.
Farm level milk output in the Pacific Northwest is steady. Milk supplies are reportedly slightly heavy to balanced compared to production needs. Some spot sales and purchases are noted at below Class prices. Class II demand is seasonally stronger from ice cream makers. All other Classes have steady demand.
In the mountain states of Idaho, Utah, and Colorado milk production is steady. Milk supplies are slightly heavy to balanced compared to processing needs and cream supplies are slightly heavy in Idaho. Milk volumes in Utah and Colorado are adequate for handlers needs. Demand for all Classes is unchanged. Contracted condensed skim milk demand is steady, while spot load activity is lighter. Cream multiples were unchanged, in the West, this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.5368 - 3.1166
Multiples Range - All Classes: 1.0500 - 1.2900
Price Range - Class II; $/LB Butterfat: 2.9475 - 3.1166
Multiples Range - Class II: 1.2200 - 1.2900
Information for the period July 3 - 7, 2023, issued weekly
Secondary Sourced Information:
Milk pooled on the California Federal Milk Marketing Order 51 totaled 2,045.9 million pounds in May 2023. Class I utilization was 394.4 million pounds and accounted for 19.3 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was $17.66, down $0.96 from April 2023.
Milk delivered to the Pacific Northwest Federal Milk Marketing Order 124 totaled 736.3 million pounds in May 2023. Class I producer milk was 136.8 million pounds and accounted for 18.6 percent of total producer receipts. The uniform price at test for May 2023 was $20.28, down $0.96 from April 2023.
Milk delivered to the Arizona Federal Milk Marketing Order 131 totaled 428.1 million pounds in May 2023. Class I producer milk was 110.4 million pounds and accounted for 25.8 percent of total producer receipts. The uniform price at test for May 2023 was $19.43, down $0.20 from April 2023.
Milk delivered to the Southwest Federal Milk Marketing Order 126 totaled 1,174.0 million pounds in May 2023. Class I utilization was 311.6 million pounds and accounted for 26.5 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to handlers in Dallas/Tarrant counties in Texas was $18.42, down $0.78 from April 2023.
