Thursday, August 10, 2023

Fluid Milk and Cream - Western U.S. Report 32

Milk production in California is lower. Current temperatures continue to contribute to lower     cow comfort and milk production. Some limited downtime is reported by manufacturers due to     tight milk availability. Demand for additional milk is steady as handlers relay open     processing capacity. Demand for all Classes is steady. Although soil moisture levels are     improved this year, some corn is reportedly behind schedules. 
In Arizona, farm level milk output is lower. Milk volumes are tight and anticipated to further tighten throughout the month with further seasonal week to week decreases anticipated by handlers. Spot load sales and purchases are noted at above Class prices. Class I demand is strong, while demand for all other Classes is steady. 
In New Mexico, milk production is lower with seasonal week to week decreases. Milk supplies are accommodating manufacturing needs. Demand for all Classes is steady. 
Cooler nights in the Pacific Northwest have helped to slow the pace of decreasing milk production. Milk volumes are meeting the needs of processors. Class II and III demands     have picked up. Class I and IV demands are steady. 
Milk is tighter in the mountain states of Idaho, Utah, and Colorado as farm level milk output is lower. Volumes for spot purchasing are limited as temperatures have taken a toll on cow comfort, negatively impacting further supply build up above processors' needs. Class III demand is strong, while demand for the remaining Classes is steady. 
Condensed skim milk availability is tighter for spot purchasing with contracted buyers ordering at higher ends of their contracted amounts and heat levels ratcheting down on milk availability. Demand is steady to moderate. Cream availability is tighter throughout the West. Demand is steady. Cream multiples moved higher for the West.
     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.0395 - 3.5152
     Multiples Range - All Classes:               1.1500 - 1.3300
     Price Range - Class II; $/LB Butterfat:      3.2245 - 3.5152
     Multiples Range - Class II:                  1.2200 - 1.3300




Wednesday Closing Dairy Market Update - February Class III Milk Price Is $20.18

MILK: Class III milk futures tried to hold gains, but the weakness of barrel cheese and dry whey limited price gains. Class IV futur...