In California, temperatures stayed in the 70s/80s range this week, keeping recently improved cow comfort in better shape. Although milk production is seasonally lower, handlers relay week to week differences have become flat. Handlers' note preliminary records indicate September 2023 milk production is flat compared to August 2023 milk production. Processors report some open capacity and relay some balancing facilities are taking downtime for maintenance projects. Spot load availability is reported as tight by stakeholders. In the Central Valley, recent electrical power outages have caused disruptions for some manufacturing plants. Class I and III demand is strong, while Class II and IV demand is steady. According to the California Department of Water Resources, precipitation figures for the current 2023-2024 Water Year, which began on October 1, 2023 have started out above the historical average mark.
Temperatures in Arizona dropped below triple digits midway through the week, but improvements to cow comfort were minimal. Handlers indicate milk production is lower and spot loads are tight. Demand for all Classes is unchanged.
In New Mexico, temperatures were higher compared to last week, but also stayed below the 90-degree mark, contributing to similar cow comfort this week. Farm level milk output is seasonally lower. Sour cream production is indicated to be more active, and overall Class II and IV demand is steadier. Class I and III demand is stronger.
In the Pacific Northwest, the western portion had lower temperatures and some rain, compared to the eastern portion. Handlers note week to week differences in milk production as flat over recent weeks. Handlers relay spot load availability is looser compared to southern parts of the West region. All Classes have unchanged demand.
In the mountain states of Idaho, Utah, and Colorado, handlers note current week to week farm level milk output differences as flat to slightly higher. Stakeholder report spot loads are slightly more available compared to southern parts of the West region. Class I, III, and IV demand is strong. Class II demand is steady.
Cream is tight, overall, but loads are less limited in the northern parts of the region. Demand is strong to steady. Demand for cream by extended shelf-life product and sour cream manufacturers is indicated to be stronger by some stakeholders. Cream multiples moved higher on the top end. Condensed skim milk is somewhat tight.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.5541 - 4.3942
Multiples Range - All Classes: 1.1000 - 1.3600
Price Range - Class II; $/LB Butterfat: 3.8772 - 4.3942
Multiples Range - Class II: 1.2000 - 1.3600
