In California, milk production is lower, as expected seasonal week to week decreases progress, and hotter temperatures start to take hold. Extended forecasts put Central Valley temperatures into the triple digit territory. Handlers note preliminary July 2023 milk output numbers are currently below anticipated levels and under July 2022 production. Although a few Central Valley contacts report some open processing capacity, milk supplies are balanced compared to manufacturing needs. Class III demand is strong, and industry sources report that has decreased Class IV volumes going to balancing plants. Class I and II demand are steady. Corn had some late plantings, which may negatively impact harvested amounts or feed costs this year.
In Arizona, farm level milk output is lower. Temperatures stayed well into the triple digits this week, negatively impacting cow comfort. Supplies are ample for processor needs. Stakeholders note a quiet monsoon season thus far. Demand for all Classes is steady.
Milk production in New Mexico is lower. Temperatures remained in the 90s and hit the 100 degree mark. Supplies are balanced compared to manufacturing needs. All Classes have steady demand.
Farm level milk output in the Pacific Northwest is steady to lower. Processors relay that seasonal week on week declines are starting. Milk volumes are available throughout the state and are in better balance compared to processing needs. Demand for all Classes is steady.
In the mountain states of Idaho, Utah, and Colorado milk production is steady. However, handlers relay slight declines are starting. Utah and Idaho had higher temperatures compared to Colorado, but impacts on farm level output and operations were minimal. Milk volumes are slightly heavy to adequate compared to manufacturing needs throughout Idaho and Utah. All Classes have steady demand.
Contracted condensed skim milk demand is steady, while activity from spot purchasers is moderate. Cream multiples held firm on the top end and moved up on the bottom end. Although cream has tightened slightly in some areas of the region, volumes are available to meet current demand.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.7198 - 3.1895
Multiples Range - All Classes: 1.1000 - 1.2900
Price Range - Class II; $/LB Butterfat: 3.0165 - 3.1895
Multiples Range - Class II: 1.2200 - 1.2900
