Thursday, April 27, 2023

Fluid Milk and Cream - Western U.S. Report 17

California milk production is steady. Supply for and demand from plants in the Central     Valley area are reportedly in good balance. Milk volumes for bottling and production needs     are available throughout the state, but some stakeholders note anticipated surplus volumes     are not. Milk supply is ample compared to production needs overall. With heavier volumes to     transport and the need for alternative routes in some parts of the state, transportation is     problematic in some areas. Class II demand is strong to steady with some upticks by ice     cream manufacturers. All other Classes have steady demand. Parts of California are in flood     watches as higher temperatures weigh into how quickly the heavy snowpack recedes. Producers     note some concern regarding potential new flooding and infrastructure holding up. 
Milk production in Arizona is steady. Temperatures reached the lower 90s for much of the week,     but cow comfort has been supported by lower overnight temperatures and cool mornings.     Impacts on current milk production were minimal. Available milk volumes are ample compared     to bottling and production needs. However, bringing in out of state milk volumes to fill     remaining open processing capacity is reported by some stakeholders. Some contacts note     Class III and IV spot loads at below Class prices. Demand for all Classes is steady. 
Farm level milk output in New Mexico is steady. Throughout the state milk volumes are available     to meet processing needs. All Classes have steady demand. 
In the Pacific Northwest, farm level milk output is steady. Milk supplies throughout the Pacific Northwest for bottling and production needs are available. In Washington State milk volumes are reportedly slightly heavy to balanced compared to current bottling and production needs by stakeholders. Contacts note spot load purchases and sales at below Class prices. Class II demand is strong to steady with some upticks by ice cream manufacturers. All other Classes have steady demand. 
In the mountain states of Idaho, Utah, and Colorado milk production is steady. Colorado received some snow, but cow comfort was good in the mountain states overall and impacts on milk handling were minimal. Milk supplies for processing needs are available throughout the area. In Idaho milk volumes are reportedly slightly heavy to balanced compared to current bottling and production needs by stakeholders. Demand is unchanged for all Classes. 
Available condensed skim milk volumes are reportedly heavy to balanced compared to production needs of processors. Contracted condensed skim milk sales are steady. Spot load sales are lighter compared to contracted sales. Amounts of available cream are plentiful to keep strong production schedules. Cream multiples were unchanged this week.

     Western U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.3840 - 3.0277
     Multiples Range - All Classes:               1.0000 - 1.2700
     Price Range - Class II; $/LB Butterfat:      2.5986 - 3.0277
     Multiples Range - Class II:                  1.0900 - 1.2700



Friday Closing Dairy Market Update - USDA Shows Little Change in Milk Prices

MILK December and later Class III milk contracts closed the day hovering around the $19.00 level. Underlying cash prices show no rea...