Fluid Milk and Cream - Western U.S. Report 27
Fluid Milk and Cream - Western U.S. Report 27 - Released on July 03, 2019 California milk output is still low. Weather conditions have been a bit cooler in the past days, but they have not yet impacted milk production. Milk loads are barely enough to satisfy all customers' needs. However, with some plants closing for the holiday, supplies will most likely balance out.
Milk output keeps on dropping in Arizona with the persistent hot temperatures reported. Because of ongoing downtimes at several processing plants in the upper Southwest, more milk is moving from that region to Arizona for processing. Plant managers expect manageable milk supplies during the holiday and do not foresee the need to run the churns. Class I demand is trending down with the schools' summer programs preparing to close on Thursday.
Milk supplies are trending down in New Mexico. Class I and II intakes have declined due to several plant managers preparing to shut down for the 4th of July. On the other hand, Class III absorbed most of the milk that was not used by Class I and II, bouncing intakes up. Class IV demand has also improved this week. As so, milk holdovers are currently low.
In the Pacific Northwest, milk supplies are plentiful to satisfy the needs of all customers. In recent days, milk production has been a bit higher as climatic conditions were comfortable for cows. Nonetheless, component levels are trending somewhat lower. Milk demand from bottlers has decreased with the holiday near the corner. The expectation is that milk handling will be manageable for the rest of the week.
In the mountain states of Idaho, Utah and Colorado, milk production continues to be strong post spring. Cooler temperatures have helped in keeping milk yield at higher levels, especially in Idaho. Processing is taking place at full capacities, and it will be even busier toward the end of this week with additional holiday milk balancing. Some spot loads of milk are available at discounted prices.
Condensed skim is more available in the West, and more of it will go to the dryers to help with milk balancing. The cream market is mixed with some reports of both higher and lower multiples. Market quietness is noted at certain localities, while at others it was still very active at the beginning of the week. However, during the holiday, sales will slow down because many dairy plants will be closed.
Cream multiples are within the range of 1.12-1.29, up 0.01 at the top of the range from last week. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1200 - 1.2900 Information for the period July 1 - 5, 2019, issued weekly Secondary Sourced Information: National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 6/28/19 to 7/04/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $1.97 $1.35 $2.86 Organic $4.08 $4.47 $4.19 Regional (Conventional) Wtd. Ave. Low High Northwest $0.99 $0.99 $0.99 Regional (Organic) Wtd. Ave. Low High Northwest $4.39 $4.39 $4.39 Southwest $3.80 $3.49 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.54 $2.70 $3.31 Organic $5.00 $5.81 $6.99 Regional (Conventional) Wtd. Ave. Low High Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00