Thursday, February 8, 2024

Fluid Milk and Cream - Western U.S. Report 6

In California, milk production continues to strengthen week-over-week. Handlers note year-over-year comparisons for 2024 production levels have been at-or-above 2023 production levels thus far in 2024. Processors relay impacts to dairies from recent heavy rains and strong winds have varied as some areas experienced flooding and damage to facilities, and other areas did not. Balancing plants are running stronger processing schedules. Some manufacturers indicate excess capacity at production facilities is tight for taking on additional spot loads. Class I, II, III demands are strong. Class IV demand is strong to steady. 

In Arizona, farm level milk output is steady to stronger. Handlers indicate cow comfort has improved compared to last week. Class I demand is strong. All other Classes have strong to steady demand. 

Milk production in New Mexico is steady to stronger. Handlers indicate milk volumes are meeting needs of manufacturers. Class demands are unchanged. 

In the Pacific Northwest, farm level milk output is trending higher. Handlers note milk volumes are slightly above anticipated levels. Processors relay weather-related disruptions were minimal this week. All Classes have strong to steady demand. 

Milk production in the mountain states of Idaho, Utah, and Colorado is noted as slightly weaker to slightly stronger. Some manufacturers indicate milk spot load availability has tightened in parts of the more northern mountain states area. Demand for Classes of milk are strong to steady. Stakeholders note demand for Class III milk loads from cream cheese manufacturers has strengthened. 

Overall, cream is readily available. Stakeholders relay sellers in some parts of the region have struggled to find homes for available spot loads recently. Cream demand is steady to lighter. Multiples moved down on both ends of the All Classes range. Condensed skim milk demand is steady to stronger and spot load availability is tighter.






Monday Closing Dairy Market Update - Milk Futures Show Little Direction

MILK: Cash prices and futures prices have not found any support due to the delay in export tariffs. Some other commodities have bene...