MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 41 - Released on October 12, 2023

NOTICE: After October 16, 2023, all information found on this report will transition to a new PDF format. 
The same data will be collected and disseminated through AMS Marketing Analysis and Reporting 
Services (MARS) platform. The new pdf report can be accessed on the AMS website at:
https://www.ams.usda.gov/mnreports/ams_1102.pdf



     In California, temperatures dropped from the 90s to the low 70s for the second part of the
     week, giving some recent improvement to cow comfort. Handlers relay week to week differences
     in milk output have flattened. Some handlers note preliminary records indicate September
     2023 milk production was slightly below anticipated levels. Some open capacity is reported
     by processors. However, unexpected power outages caused some tightening of processing
     capacity and forced some milk to be diverted to different facilities. The unexpected
     downtime contributed to tight spot load availability of milk. Class I, III, and IV demand is
     strong to steady. Class II demand is steady. Stakeholders relay late corn is being harvested
     and oats are getting planted. Stakeholders relay water volumes available for irrigation are
     in good shape through November and some anticipation of a need to make some reservoir space
     for the winter. In Arizona, temperatures were slightly below or above the 100 degree mark
     for most of the week. Milk production is seasonally lower and spot loads are tight. Class I
     demand is strong to steady. All other Class demand is steady. Temperatures were in the
     higher 70s most of the week in New Mexico, helping cow comfort minimally. Although farm
     level milk output is seasonally lower, handlers indicate flat week to week differences
     recently. Class I and III demand is strong to steady, while Class II and IV demand is
     steady. The western portion of the Pacific Northwest was rainier and colder compared to the
     eastern portion of the area this week. Recent near-term farm level milk output trends are
     reported as flat to slightly lower. However, handlers indicate looser spot load availability
     compared to southern parts of the West region. All Classes have steady demand. In the
     mountain states of Idaho, Utah, and Colorado, recent week to week milk production
     differences are mixed. For Idaho and Utah, flat to somewhat higher differences are reported.
     For Colorado, recent trends are reported as flat. Spot load availability in Idaho,
     especially, is looser than in other parts of the West. Some handlers in Idaho indicate
     incoming milk volumes are heavier than processing capacities recently. Demand is unchanged
     for all Classes. Cream is tight, overall, although cream is looser in some northern parts of
     the West region. Demand is steady. With cream more available in some northern parts of the
     region, cream multiples are slightly lower on both ends this week. Condensed skim milk is
     somewhat tight, but expected to loosen in the near future.



     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.7447 - 4.6379
     Multiples Range - All Classes:               1.0900 - 1.3500
     Price Range - Class II; $/LB Butterfat:      4.1226 - 4.6379
     Multiples Range - Class II:                  1.2000 - 1.3500


     Information for the period October 9 - 13, 2023, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     Andrew Mattheis, 608-422-8590
     Email: andrew.mattheis@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov