Thursday, January 7, 2021

Fluid Milk and Cream - Western U.S. Report 1

Farm milk production in California is stable. Milk flows are getting back to normal     following the New Year holiday shortened week. Discount priced milk loads in the spot market     are still common across the state. The school milk bottling orders are still at mid-winter     low tide. But most manufacturers have regular weekly schedules and intakes are balanced     against processing needs. 
Farm milk output in Arizona is unchanged from the previous week. Class I and Class II retail orders are firming as grocers restock the shelves following the year-end holidays. More milk is available for processing, especially with the decline in Class I inquiries from schools’ accounts. 
In New Mexico, farm milk production is also stable. Drying and churning are helping keeping milk and cream loads under control. Orders for next week delivery are up as educational institutions are expected to reopen soon. 
Milk production in the Pacific Northwest is incrementally increasing. Seasonal weather patterns     are supporting favorable cow comfort. Milk collections are well balanced with processing     needs. Bottling demand is steady. 
Milk production in the mountain states of Idaho, Utah, and Colorado is heavy. While industry contacts do not believe there has been much, if any, milk discarded during the winter holidays, discounted loads of milk are a regular occurrence in Idaho. Some handlers are selling milk loads at $4.50 under Class IV. 
With seasonally lower demand from ice cream makers and some Class II processors, large volumes of condensed skim are clearing through the dryers this week in the west region. Meanwhile, cream volumes remain abundant and cream multiples for all Classes are lower from the previous week.


     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               0.9000 - 1.1800



Monday Morning Dairy Market Update - Mixed Reaction to the Milk Production Report

OPENING CALLS: Class III Milk Futures: Mixed Class IV Milk Futures: 2 to 4 Lower ...