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Fluid Milk and Cream - Western U.S. Report 51

California milk production is stable this week. Bottled milk demand is starting to fade bit by bit as educational institutions prepare to close for the holidays. Plants are being operated close to full capacities. Processors are also preparing for next week increase balancing/churning. 
Arizona milk yield is slowly rising, but according to contacts, it     remains below last year levels. Out-of-state milk pulling has subsided, and handlers are filling their customers' orders with mostly in-state milk. Currently, some plant managers are keeping their churns at rest while they prepare for active churning during the holidays. Class I and II intakes are stable to declining. 
In New Mexico, milk output is increasing as cows respond favorably to cooler weather outcomes. Balancing needs have increased due to    downtimes at a few Class III producing plants. However, all milk loads were redirected appropriately. Class I sales are trending lower as schools prepare to close. Class II requests are slightly up. 
Pacific Northwest milk production may be turning the corner from the low point of the production cycle. Industry contacts suggest milk intakes are in good balance with processing needs. But with educational institutions going on winter break, school milk bottling is idled, pushing more milk toward manufacturing. Milk handlers are working to find homes for milk loads over the holidays. While additional milk holdovers may accumulate at facilities, contacts do not expect any undue stress that cannot be handled.
     
Milk production in the mountain states of Idaho, Utah, and Colorado, is steady to higher. According to the most recent milk production report, production continues to grow year over year due to expansion of the milk herd and small gains in milk production per cow. Milk handlers are finding adequate processing capacity in Colorado, but processing homes are in     short supply in Idaho. Industry contacts in the Gem State say they have seen numerous trucks from across the country picking up milk and cream in the last few weeks. Discounted milk loads of $4.75 under Class IV are common. Placement of holiday milk loads will be tricky, but handlers hope they can juggle trucks around enough to prevent any discarded milk.
     
Condensed skim demand is unchanged from the previous week. Prices and sales are steady. 
Cream sales in the West are stable to a bit down ahead of the holiday. Plant managers are expecting a seasonal upsurge in cream availability come next week. Therefore, they are preparing accordingly to meet processing needs. This week, cream multiples are a bit down at the bottom of the range.

     NATIONAL RETAIL REPORT DAIRYFLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/13/2019 to 12/19/2019

     Half Gallon, All Fat Tests      Weighted Average Price
     National                  This Period  Last Week   Last Year
     Conventional                $1.93        $1.61       $2.82
     Organic                     $4.26        $4.37       $3.76

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

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

     Gallon, All Fat Tests           Weighted Average Price
     National                  This Period  Last Week   Last Year
     Conventional                $3.39        $3.16       $3.05
     Organic                     $6.99        $6.99       $3.99

     Regional (Conventional)      Wtd. Ave.    Low        High
     Northwest                   $2.47        $1.99       $2.99
     Southwest                   $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 December 16 - 20, 2019, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 601.8 million pounds in November 2019. Class I utilization accounted for 23.76 percent of producer milk. The uniform price was up $0.39 from last month and $2.42 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 368.6 million pounds in November 2019. Class I utilization accounted for about 28.46 percent of producer milk. The uniform price was up $0.42 from last month and $2.84 above the same month a year ago.

     The NASS Milk Production report noted November 2019 milk production in the 24 selected states was 16.7 billion pounds, 0.9 percent up from a year ago. Milk cows in the 24 selected states totaled 8.81 million head, 8,000 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:

     November 2019 Milk Production, (USDA-NASS)

                   (Million Lb.)   % Change From
                                     1 Year Ago

     Arizona           369            - 6.3
     California      3,295            + 0.7
     Colorado          398            + 7.0
     Idaho           1,259            + 3.1
     New Mexico        650            + 2.2
     Oregon            211            + 1.9
     Utah              184            - 1.6
     Washington        544            + 0.4

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