MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 11 - Released on March 16, 2023

     In California, farm level milk output is steady. Stakeholders report current March milk
     production is up from last month, but also below forecasted levels. Milk volumes are
     available throughout the state. Processing capacity tightened with the snow in northern
     California and some regional flooding causing transportation delays and unplanned downtime
     at processing facilities. Contacts note spot load purchases and sales at below Class prices.
     Class I demand is lighter with educational institutions approaching their scheduled spring
     breaks. Demand for all other Classes continues to be steady. According to the California
     Department of Water Resources, as of March 14, 2023, the state has gotten 25.98 inches of
     precipitation for the current 2022-23 Water Year, up 8.02 inches from the historical
     average. According to the Department of Water Resources, as of March 15, 2023, the
     estimated total statewide reservoir storage was 25.70 million acre feet, which is 102
     percent of the historical average for the month. Farm level milk output is steady in
     Arizona. Temperatures in the state reached the low 80s this week. Available milk volumes for
     bottling and other production needs are ample throughout the state. With spring breaks for
     educational facilities approaching, Class I demand has lightened. Demand for all other
     Classes is unchanged. In New Mexico, farm level milk output is steady. Throughout the state
     milk volumes are ample for processing needs. Demand for Class I is lighter with approaching
     spring breaks for educational facilities. Demand for all other Classes remains steady. Farm
     level milk output remains steady in the Pacific Northwest with continued favorable cow
     comfort weather. Stakeholders report production is higher than forecasted levels. Ample milk
     volumes continue to be available throughout the area for bottling and other production
     facilities. Contacts note spot load purchases and sales at below Class prices. Demand is
     steady for all Classes. In the mountain states of Idaho, Utah and Colorado, farm level
     output is steady. Milk volumes available throughout the area for processing are ample.
     Demand for Class I is lighter with approaching spring breaks for educational facilities.
     Demand for all other Classes remains steady. Demand for condensed skim demand is steady.
     Contract sales are steady, but spot market activity stays lighter. Condensed skim milk
     availability is mixed. Some stakeholders report balanced volumes, while others report
     tighter volumes with weather conditions causing unplanned downtime at processing facilities.
     Cream volumes are plentiful and keeping production schedules strong. Cream multiplies moved
     up to a flat market on the bottom end this week.



     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.3370 - 2.9213
     Multiples Range - All Classes:               1.0000 - 1.2500
     Price Range - Class II; $/LB Butterfat:      2.5473 - 2.9213
     Multiples Range - Class II:                  1.0900 - 1.2500


     Information for the period March 13 - 17, 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