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Fluid Milk and Cream - Western U.S. Report 37

Milk output is flat in California. Class I sales are steady to a bit up as many schools are back to normal schedules. Fluid milk supplies are well balanced with demand. Class II milk is readily available in the market. However, high freight costs limit the possibility to move it across regions. 
In Arizona, no major change has occurred in the farm milk market. Milk loads available to processors are steady compared to last week's volumes. Educational institutions' milk intakes are flat. In New Mexico, more milk is moving to cheese plants. Some of the milk that was supposed to go to Class IV is being redirected to other Classes due to repair and maintenance workloads. Milk supplies are up this week, but balancing     volumes are down. Class I sales are slightly trending higher, whereas Class II demand is stable. 
Milk production in the Pacific Northwest continues to ease back from summer levels. That said, there is plenty of milk for most processing needs. Cheese production is active and bottling demand is steady. Educational institutions are back in session, and with school milk bottling, more cream is available for butter making. 
Idaho, Utah and Colorado milk production continues to fill most manufacturing plants to full capacity. Industry contacts suggest any small disruption at processing facilities creates a ripple effect within the     region. In southern parts of the region this means juggling loads to find a home for the milk, but in the northern parts of the region, a few loads are discounted at $4.75 under Class IV. Some industry contacts suggested they would not be surprised if a few loads of milk have been discarded at times through the summer because of various troubles at processing plants. 
The condensed skim market is stable with stocks readily available for     nonfat dry milk production. 
Cream offers in the West surge throughout the week. 
Butter churning is active as some of the cream that was going to ice cream processing is being redirected to butter plants. Cream multiples for all Classes increased at the bottom of the range, while declining at the top.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0900 - 1.2700


     Information for the period September 9 - 13, 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 9/6/19 to 9/12/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.02        $2.03       $2.16
     Organic                        $3.88        $4.12       $4.23

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $3.99        $3.99       $3.99
     Southwest                      $3.68        $2.99       $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $3.26        $3.21       $2.36
     Organic                        $5.00        $7.40       $5.87

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                      $1.99        $1.99       $1.99
     Southwest                      $2.79        $1.99       $2.99

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $5.00        $5.00       $5.00

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