Thursday, January 27, 2022

Fluid Milk and Cream - Western U.S. Report 4

In California milk production is steady to higher this week. Contacts report that     transportation delays and staffing shortages are causing some unexpected down time within     processing facilities in the state. Demand for Class I and Class II are steady. 
Milk production in Arizona is unchanged. Supplies of milk continue to be available for processors in the state to run busy schedules. Plant managers say that the shortage of truck drivers in the region is causing delays to the deliveries of loads. Class I demand is trending higher.
     
Farm level milk production is unchanged in New Mexico. Staffing shortages and a shortage of     truck drivers have been cited as causing delays to load deliveries. Steady demand is present     for Class I. Demand for Class II is trending lower this week. 
Contacts in the Pacific Northwest say that milk production is trending higher. Bad weather earlier in January had, reportedly, caused production to drop below some producers’ forecasted levels. Plant managers in the area continue to cite labor shortages as contributing to reduced production schedules. Steady demand is present across all Classes. 
Milk production in the mountain states of Idaho, Utah, and Colorado is steady to higher. Producers in the area say that supplies of milk are available, but that some production schedules have been reduced due to delayed deliveries of milk. Demand is unchanged across all Classes. 
In the West, contracts for condensed skim are steady. Cream inventories are available to meet regional production needs. Demand for cream is steady; some report continued interest from purchasers in the Midwest. A shortage of truck drivers, in the region, is causing delays to the deliveries of loads. 
Western cream multiples contracted this week, as the bottom moved higher and the top slid lower.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2600




Thursday Closing Dairy Market Update - Ground Beef From Dairy Cows Tests Negative for Flu Virus

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