Thursday, October 22, 2020

Fluid Milk and Cream - Western U.S. Report 43

 

In California, farm milk production had plateaued as the climate has been atypically warmer     for cows. However, nighttime is longer and temperatures supportive of cow recovery. As noted     by some contacts, the fat and protein components in the milk continue steadily improving.     Some cheese processors are helping to clear heavy milk intakes, operating at full capacity.     Milk shipments into Class I are higher, driven by hearty demands from the retail sector. 
In Arizona farm milk outputs are steady from last week. With schools opening full time, Class I sales are ramping up. Large volumes of milk are moving into Class III encouraged by    government purchases and a hearty demand from pizzerias. In New Mexico, milk production is     slightly up. Ample milk supplies are keeping balancing plants running at or near full     capacity. Milk requests from bottlers are slightly higher as eggnog production is more     active at this time of the year.
Milk production in the Pacific Northwest is steady to lower as the region nears the cyclical     low point for the year. However, manufacturers report having no issues getting the milk    needed for processing. Cooler weather has issued into the region, but this has had little to     no impact on cow comfort. Bottling demand remains relatively steady. 
In the mountain states of Idaho, Utah, and Colorado, milk production is strong. According to the NASS Milk Production Report issued earlier this week, September milk production increased by 7.8 percent in Colorado and 2.9 percent in Idaho from last year. In both cases, cow numbers and milk production per cow have increased. Manufacturers are running facilities at or near full capacity. Some processors report being able to get spot loads of milk for $4 under Class IV. Fires are still an issue in Colorado, threatening some farms and forage supplies. Snow and colder temperatures are forecasted for the weekend, which should greatly help contain the fires. 
Throughout the west region, large volumes of condensed skim milk continue clearing into seasonal ice cream making, as well into dryers. 
Seasonal competition for western cream between butter churners and Class II processors is taking shape. This week, cream multiples are steady to slightly up, ranging from 1.05 to 1.28.


     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2800


     Information for the period October 19 - 23, 2020, issued weekly

     Secondary Sourced Information:

The NASS Milk Production report noted September 2020 milk production in the 24 selected     states was 17.2 billion pounds, 2.4 percent higher from a year ago. Milk cows in the 24     selected states totaled 8.85 million head, 46,000 head more than a year ago. The following     table shows western states included in the report and the monthly milk production changes     compared to a year ago:

     August 2020 Milk Production, (USDA-NASS)

                   (Million Lb.)   % Change From
                                     1 Year Ago

     Arizona           350            - 2.2
     California      3,313            + 3.2
     Colorado          430            + 7.8
     Idaho           1,335            + 2.9
     New Mexico        662            - 0.9
     Oregon            208            - 1.4
     Utah              183            - 2.1
     Washington        557            - 1.1


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Tuesday Morning Dairy Market Update - Limited Trade Activity Expected

OPENING CALLS: Class III Milk Futures: 2 to 5 Lower Class IV Milk Futures: Mixed ...