California milk production is trending downwards. Contacts have relayed that milk production is already below what was forecasted for this time of year and will continue to decline as temperatures rise across the state. Evening temperatures in the Central Valley have been unseasonably high, and contacts anticipate that this will not only affect farm level milk outputs, but the strength of milk components. Spot loads of cream are becoming increasingly difficult to acquire throughout the state. Contacts have relayed that drying operations have slowed due to dwindling milk volumes. Class II ice cream manufacturing is seasonally steady, and demand for all other Classes is steady. According to the California Department of Water Resources, the estimated amount of water in state reservoirs was 33.3-million-acre feet, 124 percent of the historical average for this time of year, as of July 19.
A heat wave in Arizona has adversely affected cow comfort as well as farm level milk output volumes. Demand for all Classes is steady.
Similarly, milk production is trending lower in New Mexico. Demand for all Classes is steady, and despite reduced outputs, milk supplies are able to meet local manufacturing needs.
In the Pacific Northwest, farm level milk outputs are variable and have been affected by heat. Contacts have relayed that milk production is down ten percent from what was forecasted for this time of year in the Eastern parts of Oregon and Washington, as this level of heat does not usually come until a bit later in the summer season. In more mountainous areas of the Pacific Northwest and along the coast, however,temperatures have not been as high, and milk and cream are available for local manufacturing needs. Demand for all Classes is steady.
In Idaho, farm level milk outputs have been affected by heat. There are some milk and cream supplies available from more mountainous regions at higher elevation. In Colorado and Utah, farm level milk output is unchanged. Milk volumes are adequate for local manufacturing needs. Demand for all Classes is steady.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.6371 - 3.2147
Multiples Range - All Classes: 1.0500 - 1.2800
Price Range - Class II; $/LB Butterfat: 3.0640 - 3.2147
Multiples Range - Class II: 1.2200 - 1.2800
