In California, temperatures decreased from the 90s/80s range during the prior week to the 70s/80s range this week, improving cow comfort. Although milk production is seasonally lower, week to week declines are flatter, and September milk production is above some handlers' anticipated volumes. Processors note some open capacity and relay some balancing facility operations are scaled down or taking downtime for maintenance projects. Stakeholders report spot load availability is tight. Demand is unchanged for all Classes. According to the California Department of Water Resources, as of September 27, 2023, the estimated total statewide reservoir storage was 27.70 million acre feet, which is 128 percent of the historical average for the month. According to the California Department of Water Resources, as of September 26, 2023, the state has received 33.47 inches of precipitation for the current 2022-23 Water Year, up 9.80 inches from the historical average. The current 2022-23 Water Year ends on September 30, 2023.
For Arizona, although temperatures dipped into the upper 90s earlier in the week, temperatures finished out the week in the mid-100s. Milk production is lower. Handlers relay spot loads are tight. Class I, II, and III demand is strong. Class IV demand is steady.
In New Mexico, cow comfort is comparable to the prior week. Temperatures were in the low 80s this week. Farm level milk output is lower. Class I and III demand is strong, while Class II and IV demand is steady.
In the Pacific Northwest, seasonal week to week declines in milk production have flattened. Cooler temperatures have contributed to improved cow comfort. Rain in the area has contributed to comfortable irrigation supplies for crops. Handlers report some looser spot milk availability compared to the southern portion of the West region. Handlers note Class I and III demand is stronger, and Class II and IV demand is steady.
In the mountain states of Idaho, Utah, and Colorado, seasonal week to week declines to farm level milk output have flattened. Stakeholders report some looser spot milk availability compared to the southern portion of the West region. Contacts have relayed corn harvesting has mostly finished, and grain harvesting is in progress. All Classes have unchanged demand.
Although cream is somewhat looser in the northern parts of the region, overall, cream is tight in the West. Cream demand is strong to steady. Cream multiples moved down slightly on the top end. Condensed skim milk is tight.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.1625 - 3.8525
Multiples Range - All Classes: 1.1000 - 1.3400
Price Range - Class II; $/LB Butterfat: 3.4500 - 3.8525
Multiples Range - Class II: 1.2000 - 1.3400
