Fluid Milk and Cream - Western U.S. Report 30
In California milk yield is steady to a bit up. Some plants are being run close to full capacity. Class I demands remain unchanged, but Class II sales have slightly picked up. According to several industry contacts, some processors from other western states are taking a few loads of cream from California to meet their needs.
Arizona milk yield is at seasonally low levels, but according to market players, milk volumes have not declined as low as expected. Supplies are available to satisfy all pressing needs. Many industry participants are reevaluating the market, wondering how safety measures put in place to control the spread of covid-19 will affect milk demands when schools reopen for the fall semester. Meanwhile, Class I sales are unchanged from last week.
In New Mexico, milk production has declined because of hotter weather conditions. While Class I and III orders have both increased, Class III demands were well above normal levels. Class II sales have remained stable. Milk balancing needs are trending down this week. Despite a few repair and maintenance projects at a couple of plants, milk processing was done without any major issue.
While much of the Pacific Northwest milk production is following the typical seasonal decline, contacts report there are pockets within the region that have had an increase in output over the last few weeks. The weather is mild with no humidity in much of the region, ideal milk production weather. Milk intakes are in good balance with processing needs. That said, manufacturers have brought in a few loads of milk from out of state to augment processing runs. Bottling demand is steady.
Milk production in the mountain states of Idaho, Utah, and Colorado, is steady to lower. Higher temperatures are driving milk output lower. While a few discounted loads are available at $4 under Class IV, the region is in much better balance than earlier this spring. Manufacturing is pulling heavy volumes of milk supplies.
In the West, there are still more demands for condensed skim for use in making ice cream. Condensed skim supplies are steady.
Cream is still in high demand in the West. Sales to ice cream makers remain active. Butter processors are also taking some loads. Cream multiples for all Classes are lower at the bottom of the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1000 - 1.3000 Information for the period July 20 - 24, 2020, issued weekly Secondary Sourced Information: The NASS Milk Production report noted June 2020 milk production in the 24 selected states was 17.4 billion pounds, .50 percent up from a year ago. Milk cows in the 24 selected states totaled 8.83 million head, 43,000 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: June 2020 Milk Production, (USDA-NASS) (Million Lb.) % Change From
1 Year Ago Arizona 387 + 1.8 California 3,313 + 1.0 Colorado 425 + 5.5 Idaho 1,359 + 3.5 New Mexico 647 - 6.2 Oregon 216 - Utah 188 - 1.1 Washington 564 - 1.1