Thursday, December 3, 2020

Fluid Milk and Cream - Western U.S. Report 49


In California, the weather conditions are in favor of milk production. Seasonally lower     temperatures and longer nights continue boosting cow’s comfort and wellness. Milk     components' percentages for butterfat and protein are at higher levels. Raw milk loads are     plentiful and enough to meet all processing needs. Sales into Class I and II are described     as stable.
Farm milk output is seasonally strong in Arizona. Class I intakes have picked after the     previous holiday week. Class II and III sales are steady. Milk handlers are routing milk to     the different Classes without any issues. Some processing plants are running near full     capacities.
Some wintery weather has been reported in some parts of New Mexico.  However, cows’ milk     yields and delivery schedules have been marginally affected. Milk holdovers are back to the     average weekly levels after the holiday weekend. Shipments into Class I, II and III orders     have increased, resulting in less need for balancing.
Pacific Northwest milk intakes are in good balance coming out of the Thanksgiving week.     Industry contacts report there were not any major issues finding homes for milk over the     holiday. Retail fluid milk bottling is slightly stronger. Dairy product manufacturing is     active.
Milk production in the mountain states of Idaho, Utah and Colorado is heavy. Industry     contacts suggest most processing facilities are running at or near full capacity. Milk     supplies were long over the holiday weekend. However, contacts say they did not see any     indication of milk disposal or loads getting fed back to calf ranches. That said, some spot     milk loads at $4 under Class IV are still available in Idaho.
Across the West condensed skim processing into NDM and Class II is very active. Cream is     readily available in the West, compared to the other regions of the country. Churning is     active, ensuring ongoing clearing of cream. Multiples for all Classes are mostly steady this     week.



     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2400

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Wednesday Morning Dairy Market Update - Traders May Take a Wait and See Attitude

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