Fluid Milk and Cream - Western U.S. Dairy Report
Pacific Northwest milk production is following typical seasonal patterns.
(USDA Market News)
California milk production is just enough to meet the needs of buyers. Some reports suggest that milk premiums have increased recently. According to some market players, Class 4a demand is not as good as sellers expected.
Class 1 sales haven’t changed much from a week ago. Limited hauling capacities continue to affect the handling of milk volumes in California. Overall, the fluid milk market in California is steady. Milk supplies in Arizona are manageable even though handlers have to look for alternative ways to redistribute fluid milk loads.
Repair and maintenance schedules have disrupted normal activities at some manufacturing plants and caused a decline in daily milk intakes.
Milk production is generally steady to growing as the summer is near ending and temperatures have begun to cool off little by little. Milk intakes from bottlers stayed the same compared to last week.
As cream becomes more available in Arizona, some processors are selling more of it instead of making butter.
In New Mexico, farm milk production is flat to increasing following normal seasonal output rates. Bottled milk sales inched up this week. Class II orders are declining as the ice cream production peak season is past.
Class I demand is higher. More loads of milk are moving from New Mexico to the Southeast region to fulfill short term needs.
However, hauling capacity is limiting the volumes of milk that are being transported to that region.
Pacific Northwest milk production is following typical seasonal patterns. Pleasant temperatures are promoting cow comfort and components are improving.
Intakes are in good balance with processing. The occasional hiccup at manufacturing facilities or scheduled down times make a few discounted loads of milk available that are quickly consumed by area processors. Most manufacturers are running near capacity. Bottling demand is steady.
Strong milk production in the mountain states of Idaho, Utah and Colorado is continuing. Warm days and cool nights are helping cows recharge fully.
Industry contacts say forages are in good supply. The milk supply is sufficient for almost all current needs. Intakes are in good balance with processing requirements and only a few loads need to travel to find a home.
Western condensed skim is accessible to all market participants. Supplies are steady.
The western cream market is weakening as cream sale volumes remain steady to decreasing.
Butter churns are actively running cream although some of the cream is going into holiday foods manufacturing. Cream multiples for all usages are 1.10-1.27.