California milk production is steady to slightly higher than this time last year but following seasonality. Industry contacts report that spring flush feels earlier than usual, and there is some concern that this may translate into a longer flush. With customers at capacity and outlets limited, milk production is surpassing current demand. Class I and II sales remain steady.
As the days warm up and the nights stay cool, Arizona milk production continues to increase. Cow comfort is almost optimal. Manufacturing has been pulling heavily on milk supplies in advance of upcoming sales. Industry contacts say limited amounts of milk are coming into the state, and they are having no issues with balancing.
In New Mexico, last week’s challenges are getting sorted out. Milk production is returning to seasonal patterns and milk processors and haulers are mostly back online. In a few pockets of the region, the industry is contending with water issues or other lingering effects from the winter storms several weeks ago. Milk haulers saw an increase in orders from processors as pipelines refilled.
Pacific Northwest milk production is steady. The hauling issues from the last few weeks have mostly subsided, and weather that is favorable to cow comfort is returning. Milk processors say that milk and cream are readily available. Bottlers are making steady pulls on milk volumes.
In the mountain states of Idaho, Utah and Colorado there is still plenty of milk to buy if needed. There are spot loads of milk in Idaho at $4.50 under Class IV regularly and some milk is finding its way into surrounding states.
Industry contacts say spot loads of condensed skim milk were limited this week. A few milk handlers said they had customers looking for a few extra loads.
Western cream is abundant and even growing in availability. This contrasts with the challenge of finding trucks, which is resulting in some hauling snags. Multiples remain low and butter makers are choosing to keep churns active rather than selling off cream. Contacts suggest ice cream manufacturing is active.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2100
Secondary Sourced Information:
PACIFIC NORTHWEST MARKKET ORDER
Milk delivered to the Pacific Northwest Order 124 totaled 620.0 million pounds in January 2021. Class I utilization was 137.4 million pounds and accounted for 22.2 percent of producer milk. The uniform price was $14.68, down $0.84 from December 2020, and $2.65 below the same month a year ago.
ARIZONA MARKET ORDER
Milk delivered to the Arizona Order 131 totaled 352.1 million pounds in January 2021. Class I utilization was 104.6 million pounds and accounted for about 29.7 percent of producer milk. The uniform price was $14.98, down $1.26 from December 2020, and $2.94 below the same month a year ago.
CALIFORNIA MARKET ORDER
Milk pooled on the California Order 51 totaled 2.014 billion pounds in January 2021. Class I utilization was 413.6 million pounds and accounted for about 20.5 percent of producer milk. The uniform price was $14.24, down $0.70 from December 2020, and $3.32 below the same month a year ago.
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