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Thursday, November 19, 2020

Fluid Milk and Cream - Western U.S. Report 47

In California, farm milk production is stable. Class I sales are down as schools prepare to     close for Thanksgiving. Milk supplies are more than plentiful, but manufacturing plants have     enough processing capacities to balance all milk. Eggnog production is active, while last     minutes Class II orders are being fulfilled.
In Arizona, milk yields are slowly increasing, but are less than enough to meet all     processing needs. Therefore, some milk from nearby states has been clearing into some     processing plants in Arizona. Manufacturers are requesting more Class II milk to fill holiday requests.
In New Mexico, milk supplies are stable. Processors' demands for milk have risen, reducing     balancing needs. Repair/maintenance work at some cheese processing facilities has caused a     decline in shipment into cheese manufacturing. However, Class I, II, and especially Class IV     demands have improved, helping to maintain all excess of milk in balance.
Pacific Northwest milk production is steady to higher. Milk intakes can fill most processing     needs without much trouble, kept in check by production base programs. However, further     reductions in food service have propelled an increase in bottled milk demand. Some milk     handlers suggest they have had to juggle a few loads of milk to cover the swell in retail     sales. While some manufacturers expect more milk and cream to become available over the     Thanksgiving holiday, it is hard to predict how smaller family gatherings and celebrations     may affect milk distribution. Some industry contacts think that families may stock up on     essentials, placing bottlers in catch-up mode and soaking up some of the extra holiday milk.
Mountain state milk is still heavy. According to the NASS Milk Production Report October     milk production grew in Idaho and Colorado by 2.7 and 6.6 percent, respectively. Milk     production retracted by 3.7 percent in Utah. Milk supplies are plentiful and able to fill     processing facilities to capacity. Spot milk loads, discounted to $4 under Class IV, are     common in Idaho. Some milk handlers expect excess milk, and the resulting discounts, may     increase over the holiday next week.
Condensed skim milk volumes are actively clearing into dryers across the West. Cream    accessibility vary across the region with strong demand from Class II and butter churners.     Cream multiples for all Classes decreased a little bit at the top of the range.
     Western U.S., F.O.B. Cream 

Multiples Range - All Classes: 1.0500 - 1.2600 


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