California had cooler temperatures, going below the 80-degree mark, during the extended weekend. This brought some temporary improvements to cow comfort, but milk production is lower overall. Handlers suggest 2023 August California milk production was below the production of August 2022, the production of July 2023, and anticipated milk volumes. Although the Central Valley is comparatively more balanced, open processing capacity is available in the state. Handlers indicate some balancing capacity remains in a non-operating status. Milk demand for Class I and III is strong, while demand for Class II and IV are steadier. Plenty of water is available for irrigating crops with reservoirs at 130% of the historical average according to the California Department of Water Resources. Handlers relay soil moisture levels are in good shape.
Although temperatures decreased in Arizona this week, they remained in the triple digits. Milk output on the farm is lower as sustained heat levels impact cow comfort. Tight milk volumes are leaving some open processing capacity available. Class III spot loads have been purchased at above Class prices, and demand is strong. Class I demand is strong also, while Class II and IV demand are steady.
In New Mexico, temperatures stuck to the lower 90s. Milk production is lower. Handlers indicate milk volumes are in good shape compared to processing needs. Demand for all Classes is unchanged.
Cow comfort has improved in most of the Pacific Northwest, making some improvement in seasonal week to week declines. Despite lower milk volumes, manufacturers indicate processing needs are being met. Fat components in farm milk are declining to lower seasonal levels. Class I and III demand are comparatively stronger than the steady Class II and IV demand.
Farm level milk output in the mountain states of Idaho, Utah, and Colorado is lower. However, handlers relay flatter week to week decreases. Plant managers indicate milk volumes are at a good point compared to plant capacities, but some open processing capacity is available, and manufacturers indicate some tightness of fat components in the milk. Demand for all Classes is unchanged.
Condensed skim milk for spot load purchasing is tight. Similar, to cream, contracted customers are ordering at the higher end of their contrasts. Condensed skim milk and cream demand are steady. Although the holiday this week contributed to some better cream availability for spot load purchasers, handlers anticipate cream to be tight for the near-term outlook. Cream multiples moved lower on the bottom end.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.1187 - 3.6473
Multiples Range - All Classes: 1.1800 - 1.3800
Price Range - Class II; $/LB Butterfat: 3.3566 - 3.6473
Multiples Range - Class II: 1.2700 - 1.3800
Information for the period September 4 - 8, 2023, issued weekly
Secondary Sourced Information:
Milk pooled on the California Federal Milk Marketing Order 51 totaled 2.016 billion pounds in July, 2023. Class I utilization was 349.270 million pounds and accounted for 17.3 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was $15.53, down $0.89 from June, 2023.
Milk delivered to the Pacific Northwest Federal Milk Marketing Order 124 totaled 620.9 million pounds in July, 2023. Class I producer milk was 122.8 million pounds and accounted for 19.8 percent of total producer receipts. The uniform price at test for July, 2023, was $18.26, down $0.80 from June, 2023.
Milk delivered to the Arizona Federal Milk Marketing Order 131 totaled 417.3 million pounds in July, 2023. Class I producer milk was 114.4 million pounds and accounted for 27.4 percent of total producer receipts. The uniform price at test for July,2023, was $18.38, down $0.39 from June, 2023.
Milk delivered to the Southwest Federal Milk Marketing Order 126 totaled 1.084 billion pounds in July, 2023. Class I utilization was 276.6 million pounds and accounted for 25.52 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to handlers in Dallas/Tarrant counties in Texas was $16.33, down $0.92 from June, 2023.
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