In California, milk production is trending seasonally higher. Handlers note week-to-week increases have continued recently. Some handlers say preliminary milk production records indicate 2024 March milk production is higher than 2023 March milk production. Processors in the Central Valley convey plants are at, or near, full capacities. Industry participants indicate spot milk offers at below Class III prices. Class I, II, III, and IV demands are strong to steady. According to the California Department of Water Resources, the current statewide precipitation total is above the historical mean; the statewide snowpack total is above average; and, the total statewide reservoir storage is above the historical average.
Farm level milk output in Arizona is stronger. All Class manufacturing demands are strong to steady with many spring session breaks at educational facilities finishing up last week.
Milk production is noted as steady to stronger in New Mexico. Although cases of Highly Pathogenic Avian Influenza in dairy cattle have been confirmed in the state, processors convey milk volumes are meeting manufacturing needs. Demands for all Classes are strong to steady.
Handlers in the Pacific Northwest say farm level milk output is strengthening. Industry contacts note favorable weather for the seasonal spring flush is contributing to the recent increased milk volumes. Class I demand is lighter with some spring breaks taking place throughout the first half of this month. All remaining Class demands are strong to steady.
In the mountain states of Idaho, Utah, and Colorado, milk production is noted as steady to stronger. However, some manufacturers in Idaho indicate overall milk availability is tighter in 2024 compared to 2023. Handlers in Colorado convey current spring flush milk production volumes are in line with expectations. All Class demands are unchanged.
Industry participants say cream volumes are comfortable and not excessive. Cream demand is steady. Cream multiples are lower on the bottom end and moved higher on the top end of the All-Classes range. Condensed skim milk demand is lighter compared to recent weeks. Condensed skim milk loads are available.
