Dairy Fluid Milk and Cream - Western U.S.

(USDA Market News)

Milk production in California has increased more than expected in recent weeks. Although educational institutions continue to pull in more loads of milk, milk supplies are sufficient for the usages of all market participants.

Processing capacities are adequate, and manufacturing plants are running somewhat below full capacity. Although milk components are still low, they have improved from a few weeks ago. Milk production in Arizona is steady this week. Supplies of milk, though available, haven’t been moving much to out-of-state plants due to hauling/trucking accessibility.

Milk flows to educational institutions have stabilized now. Current milk volumes are in line with the needs of the industry. Milk output in the state of New Mexico has flattened. Intakes from bottling plants increased significantly throughout the week.

Handlers are actively working on finding the adequate hauling capacity to ensure full coverages of all the milk requests.

Class II sales tumbled by a few loads as ice cream manufacturers reduce their orders. In the Pacific Northwest, milk yield is in line with seasonal processing norms.

It continues to be solid, but manufacturers don’t have any issues managing the volume of milk available to them. Schools demand for milk has augmented in the past two weeks as they fill their pipelines.

Overall, milk supplies are in good balance with sales. In the mountain states of Idaho, Utah, and Colorado, milk supplies persist on being long.

However, handling is not a major issue at the moment because more milk is going to Class I and II manufacturing needs. Some discounted loads continue to channel through the spot market. All in all, milk production is steady compared to a week ago.

Western condensed skim output is flat and matches current wants. Processors report an easier access to condensed skim stocks for their daily activities. This could be because ice cream makers are not taking as much volumes of condensed skim compared to a few weeks ago. Cream sales have tumbled in the West.

Class II users have reduced their consumption. Hence, cream multiples also declined. This week, they were 1.10-1.30.

The NASS Milk Production report noted July 2018 milk production in the 23 selected states was 17.3 billion pounds, 0.4 percent above a year ago. Milk cows in the 23 selected states totaled 8.74 million head, 1,000 head more than a year ago.

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