Fluid Milk and Cream — Western U.S.
Much of the West is hotter and drier than usual. Temperatures in California have been boosted as much as 10-15 degrees higher than normal, hitting triple digit temperatures in several areas. Some crops are reportedly drying out quickly in the heat. Alfalfa is on its third cutting. Milk production is seasonally decreasing, but output is still abundant. Bottling orders are lower.
Milk yield is level in Arizona. Some dairy manufacturers with available capacity are bringing in out-of-state milk supplies. Class I demand is steady.
Milk is widely available in New Mexico. Milk output is heavy, and Class I orders are lower. Generous volumes are clearing to balancing plants, and holdover numbers are high.
In the Pacific Northwest, depleted subsoil moisture is limiting the impact of recent rainfall on improving drought conditions. Contacts share that several counties experiencing parched conditions are requesting state drought declarations. With that said, the region experienced temperatures optimal for cow comfort this week, and milk output continues to be strong. Double digit overbase programs are in place to help manage the abundance. Class I demand is lower, but demand for Class II and III is stable.
In the mountain states of Idaho, Utah and Colorado, milk production is steady to heavy. Some contacts report that spot loads are available in Idaho at discounts of up to $5.50 under Class IV. Bottling orders are level to lower. Contracted condensed skim is steady, and limited spot loads are available around flat class pricing.
Cream supplies are ample. Butter production is mixed, and the same is true for ice cream, as well. Some plant managers say that Southwestern ice cream production is decreasing, while others report that production is still very active in the Northwest. Some contacts believe this is an effort to refill the ice cream pipeline after a heatwave passed through the Pacific Northwest a few weeks ago.
Cream multiples dropped a few points at the top of the range this week.