Farm level milk production is declining in California. Contacts report some limited spot load availability. Bottling sales are higher. Demand is steady for Class II and Class III milk.
Milk is tighter in Arizona. Output is down month to month. Class I demand is elevated, and handlers have been pulling hard at available milk supplies to keep the school pipeline full and to support grocery store gallon promotions.
Milk production in New Mexico has dropped. Class I and II orders are down slightly. Balancing plants are running well and have the capacity to process additional milk, if necessary. Contacts say holdover numbers are manageable.
Pacific Northwest milk output is decreasing. Driver shortages are, reportedly, causing some delayed deliveries. School milk orders are driving higher Class I demand. Class II and III sales are steady.
Milk output in the mountain states of Idaho, Utah, and Colorado remains similar to last week. Mechanical issues in Idaho, however, enabled some spot sales at Class III pricing this week. Spot milk would not have been available, otherwise, as capacity would have been available to handle milk intakes. Bottling sales are strong. Class II and Class III orders are flat.
Condensed skim contracts are steady. Cream availability continues to decline, but contacts relay receiving volumes that are adequately meeting current manufacturing needs. Ice cream season is winding down, allowing cream supplies to flow into other cream-based manufacturing. Additionally, plant managers say cream supplies would be tighter, but staffing shortages are keeping some production lines from running at capacity. Cream multiples are unchanged from last week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.1400 - 1.2700
Information for the period August 30 - September 3, 2021, issued weekly
Secondary Sourced Information:
PACIFIC NORTHWEST MARKET ORDER
Milk delivered to the Pacific Northwest Order 124 totaled 745.4 million pounds in July 2021. Class I utilization was 128.8 million pounds and accounted for 17.28 percent of producer milk. The uniform price at test was $18.24, down $0.46 from June 2021, and $0.53 below the same month a year ago.
ARIZONA MARKET ORDER
Milk delivered to the Arizona Order 131 totaled 397.1 million pounds in July 2021. Class I utilization was 112.1 million pounds and accounted for about 28.2 percent of producer milk. The uniform price at test was $17.70, down $0.51 from June 2021, but $1.39 above the same month a year ago.
