In California, temperatures decreased from the higher 90s during the prior week to the low 90s/80s range this week, improving cow comfort. That said, milk production is seasonally lower, along with fat components of milk intakes. Although more favorable temperatures have made some marginal improvements in milk production this week, some handlers' preliminary records indicate September 2023 milk production is currently anticipated to be below last month and September 2022. Open capacity is noted by processors. Stakeholders report tight spot load availability. Demand is strong for Class I and III. Class II and IV demand is steady. However, stronger Class IV demand from the confectionary manufacturing group is reported by stakeholders.
Temperatures in Arizona remained in triple digits, decreasing to the low 100s, keeping cow comfort unfavorable. Farm level milk output is lower. Tighter milk volumes keep some open processing capacity available. Tight spot load availability is reported by stakeholders. Class II demand from heavy whipping cream and sour cream producers is reported to be strong by some handlers. All other Class demand is unchanged.
In New Mexico, more favorable temperatures for farming operations and cow comfort have contributed to flatter week to week decreases in milk output recently. Demand for Class I and III is strong, while Class II and IV demand is steady.
Temperatures cooled off during the second part of the week in the Pacific Northwest. The area also received some light rain. Both contributed to improved farming operations, cow comfort and irrigation supplies for crops. Handlers report week to week differences in milk production as flat currently. Manufacturers indicate milk volumes are meeting processing needs. Demand for all Classes is unchanged.
In the mountain states of Idaho, Utah, and Colorado farm level milk production is seasonally lower. However, handlers note milk production and spot load availability are less tight compared to other parts of the West region. Class I and III milk demand is strong. Class II and IV milk demand is steady.
Condensed skim milk and cream are tight throughout most of the region. Condensed skim milk and cream demand is strong to steady. Cream multiples moved lower on the bottom end.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.0000 - 3.6815
Multiples Range - All Classes: 1.1000 - 1.3500
Price Range - Class II; $/LB Butterfat: 3.2724 - 3.6815
Multiples Range - Class II: 1.2000 - 1.3500
