California farm level milk output is lower. Temperatures hovered slightly above or below the 100-degree mark this week. Handlers relay preliminary records indicate July production to be below anticipated levels. Extended daytime temperature forecasts for the Central Valley are in the triple digit arena. Handlers report open processing capacity and demand for additional milk, especially in the Central Valley. Demand for spot loads of milk that exceed availability of farm level milk output has reportedly increased. Class II and III demand is strong. Class I and IV demand is steady. Farmers have ample irrigation water. According to the California Department of Water Resources, as of August 1, 2023, the state has gotten 31.59 inches of precipitation for the current 2022-23 Water Year, up 8.57 inches from the historical mean.
Milk production is lower in Arizona. Temperatures backed down from nearing the 120-degree mark throughout the week to slightly under the 110-degree mark, keeping cow comfort increases to a minimal. Handlers report milk volumes available for spot purchasing are tight. Milk volumes can accommodate manufacturing needs. Demand for all Classes is steady.
Milk production in New Mexico is seasonally decreasing week to week. However, temperatures settled back down into the lower 90-degree area for the last half of this week. Milk supplies are meeting local manufacturing needs. Class III demand is strong, while all other Class demand is steady.
In the Pacific Northwest, farm level milk output is steady to lower. Cooler parts of Oregon and Washington are more on the steady end. However, handlers report volumes are below anticipated amounts. Some sentiments are this is due to a combination of current heat levels and fewer dairy cows than typically normal. Milk volumes throughout the area are meeting processors' needs. Class II and III demand has gained some momentum. Class I and IV demand is unchanged.
Milk production in the mountain states of Idaho, Utah, and Colorado is steady to lower. In Idaho and Utah raised temperatures are putting some pressure on cow comfort and some tightness in milk volumes is reported. However, milk volumes are meeting manufacturers' needs. Handlers relay cooler extended forecast temperatures may reduce some recent tightness of available milk. Class III demand is strong, while other Classes remain steady.
Condensed skim milk demand is steady. Stakeholders relay availability for spot purchasing has become tighter, as contracted purchasers are ordering on higher ends of their contracted amounts, due to seasonally decreasing production of milk solids. Cream demand is steady and cream availability is tightening. Lower end cream multiples moved higher.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.9194 - 3.4767
Multiples Range - All Classes: 1.1000 - 1.3100
Price Range - Class II; $/LB Butterfat: 3.2379 - 3.4767
Multiples Range - Class II: 1.2200 - 1.3100
