Fluid Milk and Cream - Western U.S. Report 18
California milk volumes produced are seasonally strong, in line with expectations. Manufacturing facilities continue to function at or near full performance levels to clear all the milk loads available to them. Overall, milk supplies are in good balance with requests.
In Arizona, there is enough milk available for processing duty fulfillment. Milk production is close to peak volumes as the spring flush is currently ongoing, but will be ending soon. Yet, manufacturers report that this year, milk loads have not reached that of the previous year.
The balancing of milk is active for Class IV. Class I sales are the same as last week, but are susceptible to decline during the upcoming summer break.
New Mexico milk production is mostly level. The supplies of milk available to processors are a bit up due to lower overall sales to the different Classes of milk. Class I, II, and IV intake volumes declined whereas there was a bit of uptick in Class III demand. Cleaning and mechanical repair of processing machines have changed the delivery schedules/ destinations of some milk loads, causing lower overall intakes than planned for. For the same reason, holdovers are higher than expected, but will likely clear by the end of the week.
Milk production in the Pacific Northwest continues its spring march upward as pleasant temperatures cover much of the region. Bottling demand is steady and manufacturers report having plenty of milk available for processing. In some cases, contacts say there are a few loads of spot milk floating around at hefty discounts, $3 to $4 under Class. There is also a feeling that cream is starting to tighten as ice cream manufacturers ramp up production schedules.
Milk production in the mountain states of Idaho, Utah and Colorado is strong, and steady to higher. Industry contacts report a few hiccups within plants have bumped up the amount of milk spot loads. Some of this milk is getting pushed into surrounding areas, but processors are getting the issues corrected and shipments are resuming a normal flow.
In the West, condensed skim is moving steadily through contractual agreements. Inventories are unchanged from the prior week. Cream is firming up steadily. Ice cream production is ramping up week to week; therefore, some cream loads are moving away from butter production. Still, butter churning is active in preparation for the summer needs.
Cream multiples are 1.10-1.22, up two cents at the top of the range when compared with last week data. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1000 - 1.2200