Fluid Milk and Cream — Western U.S.
California milk production is decreasing. Yields are lower than forecast, however, plenty of milk is readily available for current demands. Bottling orders are flat to lower. Class III demand has picked up.
Milk output in Arizona is declining in the summer heat. Some handlers are bringing milk in from out of state to meet manufacturing needs. Class I orders are lower. Contacts anticipate orders will increase soon as the school year will begin for some districts later this month, and those pipelines will need to be filled. Demands for Class II and Class III are level.
In parts of New Mexico, recent heavy rains have helped to stave off further drought deterioration while also resulting in some flash flooding. Milk output is steady. Class I and III orders are higher.
Hot weather in the Pacific Northwest last week has led to a bigger drop in milk production than some handlers were expecting. Additionally, recent reports indicate parts of Oregon are experiencing some of the driest conditions since 1895, and Washington’s forage production is significantly impacted by limited topsoil moisture. Contacts say feed cuttings have been reduced; some farmers may already be done cutting due to the hot, dry conditions. Class I orders are lower. Class II and Class III orders are steady.
Milk production is steady in the mountain states of Idaho, Utah and Colorado. Despite reports that worsening drought conditions in Idaho are expanding areas of crop loss and forage tightness, milk is still widely available. Contacts relay finding spot loads at discounts of up to $6.00 under Class III. Bottling orders are higher. Condensed skim contracts are steady.
Cream is tighter in the West this week. Demand is mixed throughout the region. Some contacts report lower cream demand due to holiday plant closures on Monday. Other manufacturers are offering competitive bids to secure additional cream to make up for unplanned downtime after refrigeration issues and unplanned heat-related closures last week. Cream multiples inched up at the top of the range this week.