Fluid Milk and Cream - Western U.S. Dairy Report
(USDA Market News)
In California, farm milk yield is flat to higher as the weather conditions have bounced back from the heat of the past weeks.
A good volume of milk is flowing from the farm to industrial plants. Class 1 intakes haven’t changed much from last week levels.
However, ice cream manufacturers reduced their intakes. Overall, milk constituent levels have improved from previous weeks.
Arizona milk production is steady compared to last week, but lower than that of last year at this period. Milk is currently steadily moving to processing facilities. Milk supplies are in good equilibrium with present needs. Some loads are moving to other western states. However, milk transportation was limited by restricted truck availability. Bottling milk demand was stable to lower during and after the holiday weekend.
Some loads of cream are moving to the southern part of Mexico since their cream has dried up. New Mexico milk output is steady to lower, which seems to be working out well with the Labor Day holiday. A few plants have either reduced their milk intakes during Labor Day or closed altogether.
Nonetheless, handlers found ways to redirect milk volumes. Class I intakes decreased due to school closures for the holiday. Class II demand inched up, but Class III sales moved in the opposite direction of Class II.
Pacific Northwest milk production has slowed, but remains strong as temperatures move into ranges that provide better cow comfort. Milk handlers are adjusting milk flows to normal fall patterns following the holiday weekend.
Most educational institutions are in session and are taking good volumes for school milk bottling. Dairy product manufacturers report no troubles getting the milk needed for processing.
Milk production in the mountain states of Idaho, Utah and Colorado is steady. Manufacturers report plenty of milk for most processing needs. The recent holiday weekend added a few additional loads to the mix. Discounted loads of milk are still available, but not to the same level as earlier in the summer.
In the Western region, condensed skim continues to be readily available for all buyer/end user need fulfillment.
Some discounted loads are trading in the spot market. In the West, cream sales are less dynamic compared to a few weeks ago because of a reduction in intakes for Class II manufacturing needs. Stocks of cream are more available and are being used by butter
Multiples for all Classes are the same as last week, ranging 1.10 to 1.27.
According to the NASS Dairy Products report, hard ice cream production in the West region for July 2018 is 13.8 million gallons, 4.3 percent higher than a month ago, but 14.5 percent below the previous year.
According to the California Department of Food and Agriculture, the August 4a price (butter/powder) in California is $14.05, up $0.33 from the previous month, but down $2.63 from a year ago. This compares to the Federal Order Class IV price of $14.63 for August.
The August 4b price (cheese) is $15.06, up $0.97 from the previous month, but $1.20 lower from a year ago. This compares to the Federal Order Class III price for August at $14.95.
According to the California Department of Food and Agriculture, July 2018 Class 1 sales in California totaled 46.9 million gallons, up 1.02 percent from last month, but down 2.1 percent from the previous year. From January through July 2018, Class 1 sales totaled 347.6 million gallons, down 3.0 percent from the comparable period in 2017.