In California, milk production is strengthening. Contacts say balancing plants are busy with heavier volumes to work through. Processors convey open processing capacity in the Central Valley is tight due to multiple extended unplanned downtimes at some plants going through system changeovers/upgrades. Processors say several manufacturing facilities are at full capacity. Contacts note spot milk load sales at flat pricing. Class I demand is lighter with educational facilities cycling through their spring breaks over the next few weeks. Class II, III, and IV demands are strong to steady. According to the California Department of Water Resources, as of March 19, 2024, the state has received 0.61 inches of precipitation above the historical mean during the 2023-24 water year thus far, and reservoir levels are above the historical average.
Milk production in Arizona is trending seasonally higher. Handlers note spot load availability is tight. Demands for all Classes are strong to steady.
In New Mexico, milk production is stronger. Processors convey milk volumes are meeting production schedule needs and surplus milk volumes are tight. With approaching session breaks at educational facilities, Class I demand is lighter. All other Class demands are strong to steady.
Handlers in the Pacific Northwest convey farm level milk output is strengthening. Manufacturers note plentiful to ample milk volumes available for production needs. Demands are strong to steady for all Class manufacturers. Handlers in the Pacific Northwest convey farm level milk output is strengthening. Manufacturers note plentiful to ample milk volumes available for production needs. Demands are strong to steady for all Class manufacturers.
Milk production in the mountain states of Idaho, Utah, and Colorado, is noted as steady to stronger. Some industry participants say milk volumes from week-to-week have been good, but overall, milk volumes are tighter than a year ago. Class demands are unchanged. Cream is indicated to be readily available throughout the region. Cream demand is stronger.
Cream multiples moved higher on the top end of both ranges. Stakeholders note spot loads of condensed skim milk are more available and demand is stronger.
