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Fluid Milk and Cream - Western U.S. Report 43

California daily average milk yield has been stable to higher. Compared to September, milk production has improved this month. There has also been improvements in milk component levels. Milk intakes from grocery stores and schools are unchanged to a bit up. Class II requests have somewhat dropped. 
As temperatures continue to cool off in Arizona, milk production is active. However, a few manufacturing facilities have room to help clear out-of-state milk. As the result, there is a flow of milk from the Upper West region to Arizona. Trucking issues and difficulty with finding haulers are slowing down milk transportation. Class I milk demand is the same as the previous week. 
New Mexico milk production is at seasonal levels. Manufacturers have enough supplies to satisfy their processing needs. Educational institutions are pulling steady volumes of milk. Overall, the market tone is stable. 
Milk production in the Pacific Northwest is steady. School milk bottling is stable and dairy manufacturers have plenty of milk for most processing needs. Favorable weather ontinues to support cow comfort and milk output. 
Milk production in the mountain states of Idaho, Utah and Colorado is steady. While nights have started getting chilly, pleasant daytime temperatures have kept the milk flowing. Furthermore, some farms continue to add cows into the regional milking herd. There is more than enough milk for processing needs. Any disruptions to milk handling or processing quickly result in extra milk loads getting discounted and pushed into surrounding states. 
Condensed skim sales are close to stable this week. Some manufacturers report that spot demands are very limited. Customers are content with their contractual loads and are not looking to increase their intakes. 
In the West, cream sales have been weak to almost non-existent. Customers are not ready to pull the trigger on holiday needs yet. There have been unsolicited offers as suppliers try to clear some of their stocks. Some manufacturers are able to manage their inventories without having to churn. Butter churning is active as cream is available at lower premiums. Cream multiples for all Classes have declined on both ends of the range.

     National Retail Report Dairy – Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 10/18/19 to 10/24/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.72        $3.06       $2.37
     Organic                        $3.88        $4.08       $4.11

     Regional (Conventional)      Wtd. Ave.       Low         High
     Southwest                      $2.03     $1.77       $2.29

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.38        $3.45       $2.49
     Organic                        $6.99        $5.26       $5.39

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

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.2200


     Information for the period October 21 - 25, 2019, issued weekly

     Secondary Sourced Information:

     The NASS Milk Production report noted September 2019 milk production in the 24 selected states was 17.5 billion pounds, 0.5 percent up from a year ago. Milk cows in the 24 selected states totaled 8.80 million head, 11,000 head less 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:

     September 2019 Milk Production, (USDA-NASS)

                   (Million Lb.)   % Change From
                                     1 Year Ago

     Arizona           352            - 4.9
     California      3,273            + 1.6
     Colorado          397            + 5.6
     Idaho           1,292            + 3.6
     New Mexico        669            + 2.0
     Oregon            213            + 3.4
     Utah              184            - 4.2
     Washington        563            + 1.8

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