In California, temporary improvements to cow comfort were short lived. Temperatures in the Central Valley climbed back to the higher 90s. Farm level milk output and fat component levels of milk are lower. Handlers report daily average milk production is lower compared to the final week of August as of mid-way through September. Processors note open capacity. Some processors relay sentiments that milk volumes in the state are below expectations. Some handlers report tight spot load availability. Class I and III milk demand is strong. Stakeholders relay demand by confectionary manufacturers for Class IV milk products is up. Although ice cream manufacturing is reported as less active by a few stakeholders, Class II demand is steady. Handlers relay farmers have harvested corn crops and recent field plantings have gone well.
Arizona was well into triple digit temperatures this week, getting up to 113 degrees. Milk production is lower as heat levels take more tolls on cow comfort. Some open processing capacity is available with tighter milk volumes. Strong Class III milk demand continues, along with spot load purchasing at above Class prices. All other Classes have unchanged demand.
Although temperatures cooled down during the second half of the week in New Mexico, farming operation and cow comfort improvements are minimal. Farm level milk output and fat component levels are lower. Class I and III demand is strong, while Class II and IV demand is steady.
In the Pacific Northwest, although milk production is lower, seasonal week to week declines are getting closer to flattening out. Although some open processing capacity is available, manufacturers indicate needs are being met. All Classes have unchanged demand.
In the mountain states of Idaho, Utah, and Colorado milk volumes coming off the farm are lower. However, favorable weather has helped aid flatter week to week decreases and kept fat components in milk volumes at nearly steady levels. Some open processing capacity is available. However, manufacturers indicate milk volumes are at comfortable levels for their respective processing facilities. Class I and III milk demand is strong, while remaining Class demand is steady.
Condensed skim milk is tight for spot load availability, with lower milk production and heavy contracted obligations. Demand for condensed skim milk is steady. Cream is tight. Cream multiples contracted this week, with slightly more movement to the top end of the range compared to the bottom end of the range.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.2520 - 3.6585
Multiples Range - All Classes: 1.2000 - 1.3500
Price Range - Class II; $/LB Butterfat: 3.4146 - 3.6585
Multiples Range - Class II: 1.2600 - 1.3500
