Fluid Milk and Cream — Western U.S.
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Farm level milk production is unchanged this week in California, though contacts report that output is down compared to this time last year. Milk is available for processing in the state. Some stakeholders say that they are sending loads of milk to nearby states where inventories are tighter. Class I demand is steady. Demand for Class II and III is lower this week as some production facilities are preparing for the upcoming holiday weekend.

In Arizona milk production continues to decline, following seasonal trends. Some plant managers report that additional loads of milk have become available as some production facilities have planned downtime for the July 4th holiday. Reduced food service demand for Class I is also contributing to increased availability in the state. Demand for Class II and Class III is steady to lower.

Warm weather in New Mexico is having a negative impact on cow comfort and is contributing to decreased milk output. Contacts report that milk production is down compared to last year, and this is contributing to some tighter availability. Some plant managers say that they are sourcing loads of milk from nearby states. Demand is steady across all Classes.

Milk production is steady to higher in the Pacific Northwest but is down year over year. Contacts report that cold and rainy weather has been having a negative impact on output throughout June, but that they had some nice, warmer temperatures throughout the last week. Demand for Class I and II are steady to lower, while Class III demand is unchanged.

In the mountain states of Idaho, Utah, and Colorado, milk output is steady. Spot loads of milk are available for processing, and some contacts report interest from purchasers in nearby states. Demand is lower from some production facilities with planned downtime for the upcoming holiday. Due to this, Class II and III is steady to lower. Demand for both condensed skim and cream has declined this week as some production facilities in the region are preparing for a long holiday weekend.

Contacts say that they expect strong demand to return for cream in the coming weeks as butter makers are keen to build inventories. Cream has become more available for spot purchasing. Cream multiples are unchanged from last week.

With calving underway, dairy farmers are being urged to plan ahead to combat feed shortages.

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