Fluid Milk and Cream - Western U.S. Report 53

In California, farm milk production continues ramping up. Milk shipments into Class I are anticipated to improve by the end of the week as schools prepare to reopen as soon as next week. No issues with milk handling have been reported this shortened week. Class II intakes remain active as cream is readily available. Milk orders from retail outlets are hearty.

In Arizona, milk production is on the rise as favorable weather is supportive of cow comfort. Some small processing facilities are expected to be closed during the holiday. Nevertheless, most balancing plants are scheduled to run at full capacity in order to balance large amounts of milk.

New Mexico milk production is steady to higher. Class I sales are lower    during this holiday week. Large amounts of milk/cream have been clearing into dryers and churns.

Strong milk production has continued across the Pacific Northwest. Favorable weather is promoting cow comfort. In addition, precipitation from the rainy season is covering good portions of the region, providing soil moisture now and snowpack at elevation for irrigation next year. Bottling demand is steady.

Milk production in the mountain states of Idaho, Utah, and Colorado is strong. Manufacturers have plenty of milk and discounted milk is common.     Some handlers are selling milk at $4.50 below Class IV. Industry contacts say that although milk supplies have tended to be long throughout the year, most dairy farmers are having a good year financially. Strong Class III prices and low producer price differentials have maintained farmers’ margins. Quality forages are in good supply and the snowpack is building in the mountains. Western condensed skim milk intakes are readily available for processing.

Large portions of these condensed skim milk volumes are scheduled to be converted into NDM during the holiday weekend. The western cream market remains on a bearish position as supplies are surpassing the immediate demand of buyers. Cream multiples are steady from last week.

 

     Western U.S., F.O.B. Cream

     Multiples Range - All Classes:               0.9500 - 1.2200