California milk production is declining, as anticipated seasonal week to week decreases progress, with triple digit temperatures holding their ground. Handlers relay preliminary records indicate milk output below anticipated levels for the month and under July 2022 production. Manufacturers relay component strength of milk volumes is decreasing and extended daytime temperature forecasts in the triple digit realm for the Central Valley may further decrease component strength. Class III demand is strong, and handlers anticipate stronger Class II demand from ice cream makers as projected temperatures remain in triple digit degree territory. Demand for all other Classes is steady. Farmers in the state have ample amounts of irrigation water at hand. According to the California Department of Water Resources, as of July 26, 2023, the estimated total statewide reservoir storage was 32.70 million acre feet, which is 127 percent of the historical average for the month.
In Arizona, temperatures remain hot and farm level milk output is lower as cow comfort remains in a decline. Handlers relay the recent mix of temperature changes throughout the day and precipitation amounts making the environment favorable for bugs have led to further reduced cow comfort. Milk volumes are able to meet manufacturers' needs. However, milk volumes available for spot purchasing are minimal. All Classes have steady demand.
Milk production in New Mexico is trending lower. Despite seasonal week to week decreases, milk supplies are meeting needs of local production facilities. Demand for all Classes is steady.
In the Pacific Northwest, farm level milk output varies. The cooler western parts of Oregon and Washington note milk production is steady. In the hotter eastern parts, heat is affecting cow comfort and starting to impact milk volumes. However, milk volumes are ample to meet needs of processors. Class III use is strong, and handlers relay Class II demand is picking up some momentum. Demand for all other Classes is steady.
Milk production in the mountain states of Idaho and Utah is steady. Handlers relay seasonal week to week declines are minimal thus far and cow comfort remains in good shape. In the mountain state of Colorado seasonal week to week declines, due to heat levels, have been more pronounced and milk production is lower. All Classes have steady demand.
Condensed skim milk demand is moderate from spot purchasers, while steadier from contractual purchasing. Cream availability is tightening in the southern parts of the western region. Cream demand is steady. Cream multiples moved higher this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.6875 - 3.3529
Multiples Range - All Classes: 1.0500 - 1.3100
Price Range - Class II; $/LB Butterfat: 3.1226 - 3.3529
Multiples Range - Class II: 1.2200 - 1.3100
