Thursday, October 8, 2020

Fluid Milk and Cream - Western U.S. Report 41


Bottled milk sales are steady in California. Class II demands are unchanged to declining.     Milk yield is stable compared to a week ago. Loads are enough to meet the needs of     contractual buyers, but they are less accessible to spot buyers. Manufacturing machines are     being run a bit below full capacity. Milk production in Arizona is stable, aided by weather     outcomes that are favorable for cows' well-being. Class I sales have picked up because many     schools have reopened full time this week. Milk outputs are well balanced with demands.     Handlers report there are few movements of milk across state line. Processing plants are     being run close to full capacities. 
In New Mexico, as Class I, II and III milk demands jumped up, balancing needs moved in the opposite direction. Milk orders are at seasonal levels for this time of the year. Milk production is stable to a bit up. Aside from the fact that holdovers were a bit up at the beginning of the week, there are no issues with milk transportation and processing. 
Milk production in the Pacific Northwest is steady. Manufacturers report that milk intakes are in good balance with processing needs. Farmers and milk handlers in the region have worked throughout the year to control milk supplies. Total bottling demand is steady, but the make-up is variable, vacillating between retail and institutional needs. 
Milk production in the mountain states of Idaho, Utah, and Colorado is solid. Favorable weather is supporting strong milk output. Manufacturers have plenty of milk for most processing needs. Some processors have topped off their processing facilities with the few available discounted milk loads and are running at or near full capacity. Discount milk load prices are the typical $4 under Class IV. 
Condensed skim is available to meet purchasers' day to day needs in the West. Ice cream and nonfat dry milk producers are taking consistent loads. 
In the West, cream supplies are mixed. While some processors have more cream than usual for this time of the year, others report barely having enough to cover immediate needs. Ice cream processors are taking less cream this week, whereas butter makers have increased their churning activities. Cream multiples for all Classes are steady.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2600


     Information for the period October 5 - 9, 2020, issued weekly

     Secondary Sourced Information:

     DAIRY PRODUCTS REPORT - ICE CREAM, REGULAR, HARD
     Released October 5, 2020, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production – States and United States: August 2019 and 2020
                                   Monthly Production (1000 Gallons)    Percent Change from
     Total Cream, Regular (Hard)         AUG      JUL       AUG            AUG      JUL
     Region                             2019     2020      2020           2019     2020
     United States                    64,242   71,669    69,145            7.6     -3.5

     Atlantic                         14,812   15,692    16,491           11.3      5.1
       Pennsylvania                    3,650    3,860     4,048           10.9      4.9

     Central                          37,462   42,811    41,039            9.5     -4.1
       Missouri                        3,179    2,760     3,123           -1.8     13.2
       Ohio                            2,613    2,898     2,803            7.3     -3.3

     West                             11,968   13,166    11,615           -2.9    -11.8
       California                      6,753    6,929     6,296           -6.8     -9.1
       Oregon                          1,211    1,697     1,390           14.8    -18.1
       Utah                            1,682    2,237     1,922           14.3    -14.1

     Ice Cream, Regular (Hard) – Cumulative Production: January - August

                                Cumulative Production  Percent Change
                                        (1000 Gallons)      from
     Report Month                       2019     2020       2019
     August                          498,493  508,154        1.9



Tuesday Morning Dairy Market Update - Limited Trade Activity Expected

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