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Fluid Milk and Cream - Western U.S. Report 47

In California, milk yield is stable. Bottled milk demand is declining because educational institutions are set to close next week for the holiday. Milk supplies are plentiful, but manufacturing plants have enough processing capacities to manage all the loads. Last minute Class II orders are being fulfilled. 
In Arizona, despite increasing milk output, production is still below last year's levels. Manufacturers are requesting more Class II milk to fill    holiday requests. Class I sales are down as schools prepare to close for Thanksgiving. The rain in some parts of the state has caused some delays with milk delivery schedules. 
In New Mexico, milk supplies are stable. Processors' demands for milk have risen, reducing balancing needs. Repair/maintenance work at a Class III manufacturing facility has caused a decline in Class III milk orders. However, Class I, II, and especially Class IV demands have augmented and helped in maintaining a well-adjusted market condition. Milk production is     stable despite cooler temperatures. 
Pacific Northwest milk intakes are keeping processing facilities at or near full capacity. Bottling demand is steady. Farm milk production remains strong, with seasonally high component levels. 
Milk production in the mountain states of Idaho, Utah, and Colorado remains strong. Since last year, dairy producers have added cows to the herd. Current milk intakes are keeping processing facilities filled. Industry contacts are trying to figure out where to go with extra milk over the holiday. Some manufacturers plan to run shortened schedules. Because discounted milk loads of $4.75 below Class IV are already common, some contacts think there could be a few orphaned loads of milk. 
Condensed skim is being actively dried as the nonfat dry milk market strengthens in the West. Prices are steady. 
Cream offers are mixed in the West. Contractual and short-term requests have been stable to declining depending on the vendors. While some processors report that cream is being more absorbed in the process of making various holiday dairy products, others say that they have a lot of cream at hand. Some sellers from Idaho are attempting to send some cream to Arizona without success as Arizona processors have enough cream and are not willing to take additional loads. Cream multiples for all Classes increased at the top of the range.

     National Retail Report Dairy – Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 11/15/19 to 11/21/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $3.91        $3.00       $2.67
     Organic                        $2.36        $4.07       $3.63

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                      $2.69        $2.69       $2.69
     Southwest                      $1.88        $1.88       $1.88

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $4.15        $2.99       $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $3.09        $2.65       $3.11
     Organic                        $4.99        $5.08       $5.54

     Regional (Conventional)      Wtd. Ave.       Low         High
     Alaska                         $2.99        $2.99       $2.99
     Northwest                      $2.75        $2.50       $2.99
     South Central                  $3.42        $2.99       $3.99

     Regional (Organic)           Wtd. Ave.       Low         High
     Southeast                      $4.99        $4.99       $4.99

     Western U.S., F.O.B. Cream

     Multiples Range - All Classes:               1.0500 - 1.2800


     Information for the period November 18 - 22, 2019, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 634.4 million pounds in October 2019. Class I utilization accounted for 24.28 percent of producer milk. The uniform price was down $0.18 from last month, but $1.48 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 365 million pounds in October 2019. Class I utilization accounted for about 29.4 percent of producer milk. The uniform price was up $0.03 from last month, and $1.89 above the same month a year ago.

     The NASS Milk Production report noted October 2019 milk production in the 24 selected states was 17.3 billion pounds, 1.7 percent up a year ago. Milk cows in the 24 selected states totaled 8.81 million head, 1,000 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:

     October 2019 Milk Production, (USDA-NASS)
                   (Million Lb.)   % Change From
                                     1 Year Ago
     Arizona           370            - 5.6
     California      3,411            + 2.8
     Colorado          408            + 6.0
     Idaho           1,310            + 2.3
     New Mexico        674            + 2.3
     Oregon            215            + 0.5
     Utah              191            - 1.5
     Washington        569            - 0.4

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