Fluid Milk and Cream — Western U.S.
Milk production in California is steady and following seasonal patterns. Rate of increase seems to be slowing, leading some industry contacts to believe output is hitting peak flush this week. Class I demand is steady. The spot market is tight, and milk sale outlets are still limited on finding open drying capacity.
Class I demand is high in Arizona. Some processors are bringing in milk from out of state. Local cream supply is tightening a little as the weather warms up, but temperatures dropped slightly this week. Cows are comfortable in this respite from the heat, and milk output is ample.
Milk output in New Mexico is steady, and Class I orders are flat. Holdover numbers are high but dropping as balancing plants maintain active schedules to work through heavy volumes of milk.
Component levels are high and milk production is up in the Pacific Northwest. However, much of the additional output is being absorbed. Oregon public schools are refilling pipelines as in-person instruction resumes, and bottling operations are playing catchup following the shortage of milk jug resin.
Cow comfort is optimal in the mountain states of Idaho, Utah, and Colorado. Milk production is increasing. Bottling is steady, and other dairy manufacturing activity is high. Contracted condensed skim is steady; spot sales, and requests for spot sales, are limited.
Western cream is plentiful. Some is moving out of the region, but limited tanker availability prevents heavier volumes from traveling east. Cream demand is leveling off; industry contacts anticipating more pullback after the spring holidays have relayed that this has not happened yet. Cream multiples for all classes are steady.