California milk production is lower as another round of heat takes a toll on cow comfort. Handlers suggest preliminary 2023 August production volumes are below anticipated figures, but slightly higher compared to July 2023. Planned maintenance outages by a power company impacted available processing time for a few Central Valley manufacturers, which brought supplies in balance with processing capacities. This temporarily eased some tightness in spot load availability. Class I demand is stronger with some educational institutions starting up again. Demand for all other Classes is steady. Industry sources indicate dairy herd dispersal sales taking place this week. According to the California Department of Water Resources, as of August 23, 2023, the estimated total statewide reservoir storage was 30.30 million acre feet, which is 129 percent of the historical average.
Temperatures in Arizona, receded from triple digits mid-week giving some improved cow comfort, but ended the week back in triple digits. Milk production is lower, and volumes are on the tight end. Handlers relay spot load sales at above Class prices. Class I demand is stronger with educational facilities preparing to start the 2023-2024 school year after the upcoming holiday. Demand for all other Classes is unchanged.
Farm level milk output in New Mexico is trending lower. Temperatures crept back to the mid-90s this week. Handlers report milk supplies are meeting manufacturing needs. Demand is steady for all Classes.
Handlers in the Pacific Northwest report flat to slightly down milk production trends this week. Temperatures in the eastern part of the Pacific Northwest backed out of triple digits. Despite some tighter spot load availability, milk volumes are meeting most processing needs. Milk demands are unchanged.
Although farm level milk output in the mountain states of Idaho, Utah, and Colorado is lower, handlers report milder seasonal decreases in milk volume output recently. Some tightness in milk volumes have eased, putting milk volumes in better balance with processing needs. Availability of spot loads has loosened up some. Class I demand, along with Class III demand, is stronger as 2023-2024 school year cycles have begun. Class II and IV demand is steady.
Condensed skim milk is tight for spot purchasing, with lower milk production and contracted buyers pulling heavily on inventories. Demand is steady. Although Class I processing increased, cream availability is on the tight end. Demand is steady. However, a few stakeholders note slight downticks in cream demand. Cream multiples moved higher overall for the West.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.2374 - 3.7815
Multiples Range - All Classes: 1.1900 - 1.3900
Price Range - Class II; $/LB Butterfat: 3.4550 - 3.7815
Multiples Range - Class II: 1.2700 - 1.3900
