Fluid Milk and Cream - Western U.S. Report 2

In California, milk output is steady to a bit up. Manufacturing facilities are being operated at or close to full capacities. Some loads of milk are coming from other states for clearing. Class I sales have picked up as schools replenish their pipelines for the new semester. 

In Arizona, milk supplies are abundant. Processing plants are full of in-state and out-of-state milk. Plant managers report receiving inquiries to bring out-of-state milk for clearing. However, they are not able to take all the loads because of limitation in processing capacities. Class I intakes have augmented compared to a week ago due to the reopening of educational institutions. Class II and III demands are stable. Milk output is strong. 

In New Mexico, good weather conditions are helping maintain strong milk production. milk supplies are plentiful. Unexpected downtimes at a few processing facilities have caused an increase in milk holdovers. However, handlers are managing milk loads without any major problem. Class I, II, and III sales are all up. Balancing needs have diminished compared to     last week. 

Pacific Northwest milk production is very strong, and according to dairy     contacts, well above projections. Farmers and cooperatives are trying to keep milk supplies under control, often feeding for milk components instead of volume. Manufacturers are running at or near full capacity. And while school milk bottling has returned to normal operations, it is enough to soak up only part of the available milk. 

Milk production in the mountain states of Idaho, Utah, and Colorado, is seasonally strong. Many manufacturers are running near full capacity, but available milk in Idaho is outpacing processing capacity. Industry contacts report large volumes of Idaho milk is moving into Colorado, the     southwestern states and the Midwest. Discounted milk loads are common in the region. 

Western condensed skim drying is still active, but not as much as last week. Availability is high as milk production is strong. Mexican buyers are showing more interests in condensed skim. 

Cream is widely available in the West. Cream churning is very active as it is the most effective way to clear loads in the midst of low sales. cream multiples for all Classes have improved at the bottom of the range when compared to last week numbers.

     NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 01/03/2020 to 01/09/2020

     Half Gallon, All Fat Tests      Weighted Average Price
     National                  This Period  Last Week   Last Year
     Conventional                $1.60        $2.40       $2.46
     Organic                     $3.85        $3.69       $3.91

     Regional (Conventional)    Wtd. Ave.      Low         High
     Northwest                    n.a.         n.a.        n.a.
     Southwest                    n.a.         n.a.        n.a.

     Regional (Organic)         Wtd. Ave.      Low         High
     Northwest                    n.a.         n.a.        n.a.
     Southwest                   $3.67        $3.49       $3.99

     Gallon, All Fat Tests           Weighted Average Price
     National                  This Period  Last Week   Last Year
      Conventional               $3.83        $2.93       $2.50
      Organic                    $5.72         n.a.       $6.18

     Regional (Conventional)    Wtd. Ave.      Low        High
     Northwest                   $1.99        $1.99       $1.99
     Southwest                   $1.99        $1.99       $1.99

     Regional (Organic)         Wtd. Ave.      Low        High
     Northwest                   $5.00        $5.00       $5.00
     Southwest                   $5.98        $5.98       $5.98

     Western U.S., F.O.B. Cream

     Multiples Range - All Classes:               1.0000 - 1.1800


     Information for the period January 6 - 10, 2020, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released January 6, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production – States and United States: November 2018 and 2019
                                   Monthly Production (1000 pounds)    Percent Change from
     Total Cream, Regular (Hard)   Nov      Oct       Nov     Nov     Oct
     Region                        2018     2019      2019    2018    2019
     United States                 48,070   58,963    48,935   1.8   -17.0

     Atlantic                      12,314   13,281    12,518   1.7   -5.7
       Pennsylvania                3,585    2,550     3,445    -3.9  35.1

     Central                       26,981   33,499    26,156  -3.1  -21.9
       Missouri                    2,243    2,786     2,237   -0.3  -19.7
       Ohio                        1,935    2,412     1,862   -3.8  -22.8
     West                          8,775   12,183    10,261   16.9  -15.8
       California                  3,684    6,720     5,435   47.5  -19.1
       Oregon                        997    1,117     1,015   1.8    -9.1
       Utah                        2,096    1,901     1,622  -22.6  -14.7

     Ice Cream, Regular (Hard) – Cumulative Production January - November
                                Cumulative Production  Percent Change
                                        (1000 pounds)      from
     Report Month                       2018     2019      2018
     November                        674,677  660,926      -2.0

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