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

(USDA Market News)

California milk production is mostly steady this week. Some milk volumes will be moving to find new processing homes as many small plants take additional days off around the Labor Day weekend and reduce their milk intakes.

Still, the holiday is unlikely to disrupt much milk processing capacities. Class 1 orders are stable to up. The need of public schools across the state are met.

Retail orders are steady to increasing as purchasers adjust to the school year ordering habits.

Arizona milk production has a stable trend. Daytime temperatures are prevalently higher and continue to somewhat stress milk cows. However, the stress level hasn’t changed much in the last few weeks. Manufacturing plants are running at reduced schedules to match milk intake levels.

However, the Labor Day holiday will affect how milk is handled toward the end of this week and at the beginning of next week. Class I sales have remained level. Milk supplies are enough to meet all customers’ requests.

New Mexico farm milk output is steady to trending lower. Milk per cow has stayed at the same lower level due to climatic conditions. Many processing plants are actively running. Some are expected to be busier during the Labor Day weekend because some others are planning to close and will need their milk redirected to different processing facilities.

Class II demand slightly declined to match current ice cream processing needs. Class I requests are steady.

Milk output in the Pacific Northwest is following expected volumes. As students have returned to school and bottling demand has increased, local milk supplies are more manageable.

However, the forthcoming holiday will create more manufacturing milk volumes, but producers report being prepared for the temporary additional milk volumes.

In the mountain states of Idaho, Utah and Colorado, milk loads available to processors are abundant, but manageable. The holiday weekend will result in more milk loads going to processing plants. Milk production is unchanged from a week ago. Class I demand is steady.

Condensed skim is available to satisfy all buyers’ requests in the West this week. It is expected that more condensed skim will be accessible during the holiday weekend. As the holiday weekend approaches, cream demand has slowed down. Buyers’ interests have declined, and more cream is projected to clear into butter churns.

Demand from ice cream and other frozen dessert makers has declined seasonally. Cream is trading at multiples ranging from 1.10-1.27 depending on usages and basing points.

According to California Department of Food and Agriculture, July 2018 pool receipts of milk in the state total 3.09 billion pounds. This is 2.9 percent lower compared to the same month a year ago. From January through July 2018, receipts are 0.2 percent higher from the comparable period in 2017.

The Value at Test price is $14.94, $.47 lower than the previous month, and $1.42 below a year ago. The percentage of receipts used in Class 1 products is 12.41 percent. The July quota price is $15.57, and the over quota price is $13.87. These prices are $.37 below last month, and $1.55 lower from a year ago.

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