Fluid Milk and Cream - Western U.S. Report 19
Milk production in California is steady to a bit down. Many farmers have reached the peak of their milk production and are expecting a decline in output in the coming weeks. Milk supplies remain abundant for all manufacturing needs throughout the state. Fluid milk demand is steady to somewhat up according to market participants.
In Arizona, a good volume of milk is flowing from the farm to processing plants. However, milk outputs are currently lower than last year at the same period. Therefore, processors fear that in the summer, cream and milk supplies available to them might become tighter than in previous years. Class II handling is ongoing as producers plan for summer ice cream needs. Class I demand is unchanged from the previous week. Class IV and III processing is active.
In New Mexico, milk off the farms is accessible to all customers. Demand is in good balance with supplies. The different classes of milk are moving steadily to their intended processing facilities. Nevertheless, Class II interest seems a little higher than the other Classes of milk. The spring flush is about to end soon in New Mexico.
Milk production in the Pacific Northwest is trending higher. Class I sales are slightly higher, even as some educational institutions approach the end of their school terms. Manufacturers are not having any real trouble getting the milk needed for processing. A few discounted loads of milk are coming into the region from neighboring states.
Milk production in the mountain states of Idaho, Utah and Colorado is steady. Many of the manufacturers have plenty of milk to keep plants running at or near capacity. However, a few hiccups at facilities have created minor disruptions to milk flows, pushing some milk into surrounding states. A few loads were discounted to $3 to $4 below Class to help them move.
Condensed skim is plentiful in the West, and it is moving across state borderlines to satisfy market demand. While the majority of condensed skim is finding its way to the dryers, some loads are going to ice cream processing.
Cream supplies are slightly firmer this week, but continue to be accessible to dairy market participants.
Butter processing is active, though some cream is being channeled toward the making of ice cream. Cream multiples remain at 1.10 to 1.22.