Fluid Milk and Cream - Western U.S.
In California, fluid milk production is flat, and milk sales through diverse channels are strong. Class I requests are back to normal in Southern California after last weekś incident that prompted the closing of some schools. Milk clearing activities remain lively with handlers securing new balancing agreements to offset the closing of a plant in Hughson.
Arizona milk yield is unchanged from a week ago, but remains strong. Milk clearing is not as challenging this year due to smaller volumes produced compared to last year. There are currently more than enough loads of milk to meet all requests within the state. Class I demand is stable. Class IV usages are efficient, and some processors prefer to make more butter instead of selling their cream at a discount. Class III sales are up because of rampant cheese output ahead of the Super Bowl.
Farm milk output is at the expected seasonal level in New Mexico. Components in milk are steadily increasing. Some processing facilities are running more whole milk this week. The football season is also calling for more cheese production. However, bottled milk inquiries are steady.
Milk production in the Pacific Northwest is slowly growing. Manufacturers report having plenty of milk from their usual sources to keep facilities near capacity. Forays into neighboring states for extra loads of milk are not needed. Bottling demand is steady.
In the mountain states of Idaho, Utah and Colorado, milk production is generally steady. A few industry contacts report production had backed off a bit, but so too, have fluid milk sales into processors. Many manufacturers are still running near full schedules, but there is such a close balance between supply and demand that any little disruption pushes a few extra loads into neighboring states.
Condensed skim continues to clear into nonfat dry milk. Supplies are ample in the West. The cream market is mixed. Spot loads are easily accessible to buyers/end users. Churning activities are ongoing as processors build butter stocks. Cream multiples for all Classes are 1.00-1.17. National Retail Report Dairy ąnd Fluid Milk Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 1/25/19 to 1/31/2019 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1700