California milk production is lower. Persisting triple digit temperatures are contributing to lower cow comfort and seasonal declines in milk output at the farm. Industry sources relay that the component levels of milk are continuing to decrease. Handlers suggest preliminary 2023 August production figures for the month thus far are below 2022 August production figures. Availability of spot loads is tight, as some handlers indicate they are unable to accommodate beyond contracted obligations due to lower farm level output. Manufactures report some planned downtime for the upcoming week, which may bring supplies back into a closer balance with online processing capacity. Demand is strong for all Classes. Industry sources indicate further dairy herd dispersal sales set to take place.
In Arizona, farm milk output is seasonally lower. Although no shortages compared to manufacturing needs are reported, available milk volumes beyond this are tight. Handlers note spot load sales at prices above Class. Demand for all Classes is strong.
Although New Mexico milk production is trending lower, temperatures backed out of the triple digits, taking some of the bite out of the seasonal week to week decreases. Handlers indicate milk supplies are accommodating manufacturing needs. Demand for all Classes is unchanged.
Temperatures climbed past 100 degrees in the eastern part of the Pacific Northwest throughout the week. Handlers relay sharper seasonal decreases this week and lower milk output coming off the farm. Although spot load availability is slightly tighter, milk volumes are sufficient for most processing needs. Milk demand is steady for all Classes.
Milk output is lower in the mountain states of Idaho, Utah, and Colorado. Temperatures in the northern portion of the mountain states crossed the 100-degree mark. Handlers report balanced milk volumes compared to processing capacities. Limited volumes are available for spot purchasing as milk output has slowed. Demand across all Classes is steady.
Availability of condensed skim milk is tight for spot purchasers, while contracted buyers pull heavily against their orders. Demand is steady. Throughout the West, cream availability is tighter. Demand is steady. Cream multiples increased in the West.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.0960 - 3.6298
Multiples Range - All Classes: 1.1600 - 1.3600
Price Range - Class II; $/LB Butterfat: 3.3363 - 3.6298
Multiples Range - Class II: 1.2500 - 1.3600
