Contacts report strong milk production in California. Milk output was up from December, but some contacts say production fell below expectations. Downtime for the New Year's holiday is contributing to lighter demand from processors in the state this week.
In New Mexico and Arizona, milk production is steady.
Milk output in the Pacific Northwest was negatively impacted by heavy rain and flooding in recent weeks, but contacts say farm level production has stabilized somewhat this week. Spot volumes of milk are available, amid downtime at processing plants for the end of year holidays.
Contacts report steady milk production in the mountain states of Idaho, Utah, and Colorado. Some processors are selling additional spot loads of milk, due to scheduled downtime for the end of year holidays. Demand for Class I milk was steady in the latter half of December, but contacts report increased interest late this week, as bottlers are preparing for the start of the spring semester at regional educational institutions. Demand for all other Classes of milk are steady to light.
Cream production is strong. Spot purchasers say volumes are plentiful. Downtime at some Class II and III facilities aided in pushing cream multiples lower this week. Butter makers are running busier production schedules around the New Year's holiday. Condensed skim milk is available, and demand is somewhat light.
