Fluid Milk and Cream - Western U.S. Report 46

Milk output is mixed in California. Some contacts in the state report a slight decline in milk production from last week to this week, but milk output in the first half of November is up from October. Meanwhile, milk fat component levels are trending higher, following seasonal trends. Some contacts relay milk output is down compared to this time last year, but fat component levels are up. Milk volumes are available in the state to meet local processing needs. Demand is steady across all Classes. Milk production is steady in Arizona as daily temperatures in some parts of the state continue to peak in the high-80s. 

Milk volumes are somewhat tight in Arizona. Stakeholders suggest spot milk availability will increase at the end of this week and into next week, as some manufacturers prepare for scheduled down time for Thanksgiving. Across all Classes, demand is unchanged. 

Milk production is steady in New Mexico. Contacts say milk is available for spot purchasing, but volumes are not excessive. Manufacturers in the state are utilizing available milk to run steady production schedules. Demand for all Classes is holding steady this week. 

Contacts in the Pacific Northwest say weather has been favorable this week, contributing to increased cow comfort. Milk output in the state is steady to higher, though some contacts say production this month is below previously forecasted levels. These dairy processors say they are utilizing available spot milk volumes to operate steady production schedules. Contacts report steady demand for all Classes. 

Milk output is steady to higher in the mountain states of Idaho, Utah, and Colorado. In Idaho stakeholders note strengthening milk production is contributing to increased spot availability. Meanwhile, contacts in Utah and Colorado say milk volumes are well balanced with current processing needs. Some contacts anticipate a decline in milk demand ahead of the holiday next week but say demand for Class III and IV have remained strong so far this week. 

Contract condensed skim milk sales are steady in the West, and inventories are available in the region. Cream volumes are becoming more available in the region, as fat components in milk are increasing. Cream demand is strong in the West. Contacts suggest demands for condensed skim milk and cream will decline next week, as plants have scheduled down time on or around Thanksgiving. Some cream users in the region relay this may contribute to increased spot cream availability and lower cream multiples during the holiday week.