Thursday, July 22, 2021

Fluid Milk and Cream - Western U.S. Report 29

California milk production is following seasonal patterns and declining. Contacts say milk     supplies are in good balance with dairy manufacturing demands. Bottling orders are lower.     Class II sales are steady to stronger. 
Farm-level milk production is decreasing in Arizona. Some K-12 institutions are beginning the new school year this month, and Class I demand is picking up as that pipeline refills. Class II and III orders are level. 
Milk flows are declining in New Mexico. Bottling sales are flat. Balancing plants are active, and Class III demand is steady. 
In the Pacific Northwest, milk production is decreasing. While the heat-related drops have been greater than expected in parts of Washington, milk supply is in good correlation with demand overall. Although potential drops in milk production due to future high temperatures have been the topic of discussion for some handlers, contacts say current output levels are expected to hold for a while. Class I orders are lower. Class II and III demand are steady. 
Milk is widely available throughout the mountain states of Idaho, Utah, and Colorado. Some contacts report spot loads in Idaho at discounts of up to $5.00 to $5.50 under Class III. Bottling sales are higher. Balancing is heavy, and some market participants note that Class III demand is stronger than they usually see this time of year. 
Condensed skim contracts are steady. Cream is tighter, but flattening demand is helping to keep     pressure from building in the market. Butter and cream cheese production are steady. Cream     multiples at the top of the range decreased this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1500 - 1.2800


     Information for the period July 19 - 23, 2021, issued weekly

     Secondary Sourced Information:

     CALIFORNIA MARKET ORDER
Milk pooled on the California Order 51 totaled 1.929 billion pounds in June 2021. Class I     utilization was 369.2 million pounds and accounted for about 19.1 percent of producer milk.     The uniform price was $17.30, up $0.57 from May 2021, and $4.17 above the same month a year     ago.



Friday Midday Dairy Market Summary - Butter and Cheese Prices Bounce

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