Thursday, January 4, 2024

Fluid Milk and Cream - Western U.S. Report 1

In California, temperatures for the Central Valley varied from the high 40s to the 70-degree mark. Farm level milk output is strengthening with seasonal week-to-week increases. Some handlers say preliminary records indicate December 2023 milk production was above anticipated levels, as well as above November 2023 milk production. Milk volumes are meeting processors needs. Some milk volumes are shifting away from balancing facilities as holiday downtime is ending. Class I demand is picking up as some educational facilities in the state have finished up session breaks. Demands for all other Classes are steady. According to the California Department of Water Resources, as of January 2, 2024, the state has gotten 5.34 inches of precipitation for the current 2023-24 Water Year, down 3.04 inches from the historical mean. 

In Arizona, temperatures in more southern parts of the state were in the 60s/70s, while temperatures in more northern parts of the state were in the 40s. Milk production is steady. Handlers indicate seasonal week over week increases. Manufacturers indicate milk volumes are meeting production needs. Bottling demand remains lighter as many schools in the state keep session breaks going through this week. All other Classes have steady demand. 

Temperatures in New Mexico remained in the 40s/50s from recent weeks. Farm level milk output is steady. Stakeholders note ample milk volumes are available for manufacturing needs. Class I demand is lighter as some large school districts resume instruction next week. Class II, III, and IV demands are steady. 

In the Pacific Northwest, temperatures held similarly to recent weeks, contributing to good cow comfort. Farm level milk output is trending higher. Aside from some bottling demand uptick, Class demands are unchanged. 

In the mountain states of Idaho, Utah, and Colorado milk production is steady. Some stakeholders relay that many valley areas in Idaho and Utah have had little snow thus far this winter session. Processors indicate milk volumes are readily available throughout much of the area. Demand for all Classes is steady to lighter. 

Cream is readily available throughout much of the region. Cream demand is steady to lighter. Multiples at the top of the range for all Classes held, while multiples at the bottom of the range for all Classes moved up slightly. Condensed skim milk demand is steady.






Monday Morning Dairy Market Update - Mixed Reaction to the Milk Production Report

OPENING CALLS: Class III Milk Futures: Mixed Class IV Milk Futures: 2 to 4 Lower ...