Thursday, February 25, 2021

Fluid Milk and Cream - Western U.S. Report 8

California milk production is strong and following seasonal patterns. Some industry contacts     suggest the state is close to spring flush. With ample amounts of milk and cream,     manufacturing is operating at or near full capacity. Milk handlers are discounting a few     loads of milk to $3 or $4 under Class III. Balancing plants are running heavy. Bottling     demand is steady to higher. Class II sales are steady.

Milk production in Arizona is steady to higher. Favorable weather has kept the milking herd     comfortable. As parts of the surrounding region recover from the winter storms, normal milk     flows are returning. Manufacturers have plenty of milk available for most processing needs     and Class I sales are up slightly as the pipeline refills.

In New Mexico, milk production is recovering from last week’s winter storm. While normal     hauling patterns are resuming, some contacts think there may still be some milk discarded     due to disruptions. Manufacturers are getting back up to normal processing schedules.     However, it will be some time before the total impact of the weather on the industry will be     known. Some contacts suspect culling rates may increase in the next few weeks.

Clean up from the recent winter storm in the Pacific Northwest continues, however the region     has a few pockets that are still without power. In addition, blockage of a few mountain     passes is hindering milk collection and distribution. Most manufacturers are back up and     running, trying to catch up on dairy product orders. Class I sales are up as bottlers refill     the fluid milk pipeline. On the farm, milk output is climbing, but a few farms still need to     run generators to keep going. Industry contacts think there may still be small amounts of     milk being discarded.

In the mountain states of Idaho, Utah and Colorado milk production is stable and strong.     Industry contacts suggest that the storms last week created some disruptions to milk     handling and processing within the region, but impacts were minimal. Manufacturers have     plenty of milk for most processing needs. A few loads of milk are available at a discount of     $4.50 under Class IV.

Condensed skim orders picked up and spot loads are available. Balancing plants are running     heavy schedules, especially in the Southwest.

Western cream multiples stepped slightly higher this week. Cream is widely available, but     there is little pressure to move it. Butter churns are backlogged, trying to work through     the cream on hand and catch up from the power and supply disruptions from last week.



     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0300 - 1.2100




Tuesday Midday Dairy Market Summary - Butter Finds More Aggressive Buyer Interest

OUTSIDE MARKETS SUMMARY: CORN: 1 Higher SOYBEANS: 5 Higher SOYBEAN MEAL: ...