Fluid Milk and Cream - Western U.S.
In California, although milk output is strong, it is trending below last year's levels according to market participants. Class I demand is a bit higher this week. Milk processing is either at full capacities or close to it. Plant managers are in control of milk supplies management within their areas, so they are not sending any loads into neighboring regions for processing.
In Arizona, milk production is still lower than usual for this time of the year, but has picked up from previous weeks. Weather, though warming up, is still comfortable for cows. The handling of all the milk loads produced is taking place within the state as manufacturers have enough room to do so. Nonetheless, their schedules are full. Bottlers' milk intakes are steady. More of the holiday dairy items production were prioritized over other dairy products in past weeks.
Class III sales are the most prevalent in the state of New Mexico right now. While cheese vats are being actively run, Class I and Class II demands have weakened a bit. Except for a few last-minute orders, most of the holiday Class II milk needs have been satisfied. Milk yield is about the same as last week. Most disruptions to normal activities that occurred last week at a few dairy facilities have been taken care of.
Pacific Northwest milk production is creeping higher. Industry contacts are anticipating a flood of milk, but so far, the seasonal spring flush has yet to appear. Bottling demand is steady, and manufacturers have plenty of milk available. Likewise, cream supplies are available, but not overwhelming. Contacts say ice cream manufacturers are not waiting for summer-like weather to ramp up, but instead are slowly increasing activities.
Milk production in the mountain states of Idaho, Utah and Colorado is increasing. Some contacts suggest intakes are growing faster in southern reaches of the region than in the north. Milk supplies can fill most processing needs. Some loads of milk are moving within the region, but few, if any, are leaving the region in the search for a processing home.
Several reports suggest that condensed skim is selling well based on contractual agreements while at the same time many spot requests are also coming in. Prices are in the normal range. Large volumes of condensed skim are moving to ice cream and cheese plants.
Cream sales are still high, but not as high as in the preceding week. Ice cream continues to pull in more cream, taking some loads away from the churns. Cream supplies have declined over the last few weeks. However, there was a slight decline at the top of the range for all Classes cream multipliers. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0600 - 1.2300