California stakeholders indicate farm level milk output and component levels are strong in the starting weeks of 2026. Manufacturers convey open processing time is extremely tight. This, along with some production facility closure, is freeing more loads up for spot buyers to secure. According to the California Department of Water Resource, as of January 6, 2026, the state has received 5.24 inches of precipitation above the historical mean of 9.13 inches during the current 2025-2026 water year, which is strengthening water resources for dairy farmers to utilize.
For Arizona and New Mexico, stakeholders note steady milk production and convey spot loads are being secured at below Class prices.
Handlers in the Pacific Northwest indicate milk production is steadier this week. Milk intakes at newer production facilities in the area continue to increase and inch closer towards volume capacities.
Farm level milk output in the mountain states of Idaho, Utah, and Colorado vary from steady to stronger. Stakeholders indicate milk output is generally balanced with processing capacities in Colorado. Class I demand is stronger throughout the region with educational institutions generally starting sessions again this week. Class II demands are steady. Class III demands vary from steady to lighter. Class IV demands vary from steady to stronger.
Cream is readily available and demand is mixed. Cream multiples are higher for the bottom end of both ranges this week. Condensed skim milk loads are available. Demand varies from steady to light.
