Fluid Milk and Cream — Western U.S.
August milk production in California is flat compared to July, and output is exceeding handler forecasts. Contacts say milk supply is in good balance with higher bottling orders and steady to higher Class II and Class III demand.
Milk output in Arizona is declining. In-person instruction at educational institutions is driving higher bottling sales. Class II orders are flat. Class III demand is steady to higher.
Farm-level milk production is dropping in New Mexico. Class I demand is up as the school year commences. Class II demand is level to lower, and Class III demand is higher.
Pacific Northwest milk output is decreasing. Overall, milk production in the region is meeting handler expectations. Contacts say there are some areas, however, that have been unable to recoup heat-related drops in output and are well below production forecasts. Bottling sales are picking up steam. Class II and Class III demand is steady.
Milk production is stable in the mountain states of Idaho, Utah, and Colorado. Milk is widely available in Idaho; some contacts report discounted spot loads at $5 to $5.50 under Class III. Bottling demand is increasing. Class II and Class III sales are level to higher. Condensed skim contracts are steady. Cream is available, but contacts say finding trucks to haul it poses a challenge.
Butter production is starting to pick up as ice cream production decreases seasonally. This week, cream multiples shifted down.