Thursday, September 23, 2021

Fluid Milk and Cream - Western U.S. Report 38

California milk production is stable. Bottling sales are steady to higher. Class II and     Class III orders are level. Arizona milk production is down seasonally as well as year over     year. Handlers are pulling generous volumes to meet robust bottling demand, and some say     milk is getting tight. Class II sales are steady, but Class III sales are lower than last     week. 
Milk output is up slightly in New Mexico. Contacts say holdover numbers are comfortable, and some milk loads have been reallocated to other facilities to accommodate planned maintenance. Class I and Class II demand are higher. Class III demand is lower, in part due to the planned downtime for plant maintenance. 
Cooler, more cow-friendly, temps continue to bolster farm level milk production in the Pacific Northwest. Bottling sales are steady, but pipelines are filling. Class II and Class III orders remain steady. 
Milk output is flat to higher across the mountain states of Idaho, Utah, and Colorado. Contacts report limited spot loads have been available in Idaho for $1.00 under to $1.00 over Class III pricing. Bottling demand is lower this week, but Class III demand is steady as cheesemaking operations remain busy. 
Contracted condensed skim is steady. Cream supplies are tighter but, plant managers say, more or less sufficient for current cream-based dairy manufacturing levels. Ice cream production is seasonally subsiding while cream cheese manufacturing is steady to meet strong consumer demand. Butter production levels remain mixed. The top of the cream multiples range increased a few points.


     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1600 - 1.2800


     Information for the period September 20 - 24, 2021, issued weekly

     Secondary Sourced Information:

     CALIFORNIA MARKET ORDER
Milk pooled on the California Order 51 totaled 2.541 billion pounds in August 2021. Class I     utilization was 409.8 million pounds and accounted for about 16.1 percent of producer milk.     The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was     $16.59, down $0.35 from July 2021, but $2.06 above the same month a year ago.

     MONTHLY MILK PRODUCTION
The NASS Milk Production report noted August 2021 milk production in the 24 major states     was 18.0 billion pounds, 1.1 percent higher than a year ago. Milk cows in the 24 selected     states totaled 8.97 million head, 112,000 head more than a year ago. The following table     shows western states included in the report and the monthly milk production changes compared     to a year ago:

     August 2021 Milk Production, (USDA-NASS)

                 (Million Pounds)    % Change From
                                     1 Year Ago

      Arizona         368  - 0.5
      California 3397  + 0.7
      Colorado 452  + 2.5
      Idaho  1429  + 1.1
      New Mexico 608  - 9.3
      Oregon         221  + 0.5
      Utah  194  + 3.2
      Washington 541  - 6.6



Tuesday Morning Dairy Market Update - Limited Trade Activity Expected

OPENING CALLS: Class III Milk Futures: 2 to 5 Lower Class IV Milk Futures: Mixed ...