Fluid Milk and Cream - Western U.S. Report 20
In California, milk output is steady to a bit down. According to industry contacts, milk sales to local plants have been steady across the Central valley. Processors are able to better manage their milk supplies this week. There are also fewer loads of spot milk available for spot sale. Most loads are moving through contracts. Class I deliveries are steady to slightly up.
In Arizona, milk production is declining as the temperature reached an earlier than usual high record of 107 degrees this week. Milk supplies are now under control. With the reopening of many businesses after the quarantine, demands for milk are increasing. Class II sales are trending up, whereas Class I requests are unchanged from the previous week.
In New Mexico, milk production is stable. The reduction in milk production program continues to help maintain the stability of the milk market. There hasn't been any issue with milk hauling this week. Class I orders are flat, whereas Class II and III demands are trending higher. Balancing needs have declined.
Pacific Northwest milk production is steady. All things considered, farmers and manufacturers have been able to keep production in check and in fairly good balance with processing needs. Bottling demand has eased back from the retail surge experienced several weeks ago, but is still ahead of normal levels. Manufacturing facilities are running near full capacity. Industry contacts report the excess cream supplies are getting cleaned up and cream multiples have moderated.
Milk production in the mountain states of Idaho, Utah, and Colorado is seasonally strong. However, farmers and processors are working hard to curtail excess production and find homes for any extra milk. Many manufacturers have over base programs in place. Some farmers have adjusted feed rations and cut back to twice per day milking schedules to reduce milk output. Regardless of the efforts taken, the region’s farmers and milk handlers are facing considerable financial stress. Industry contacts report some milk is difficult to place without heavy discounting.
Condensed skim supplies are balanced. Some processors report that they no longer have an urgency to sell spot loads. However, they have been receiving more inquiries from customers who are looking to buy condensed skim.
In the West, cream supplies have diminished as demands for Class II are picking up. Cream churning is still active, but has decreased compared to the past week. Discounted cream is almost non-existent. The range of the all Classes cream multiples has narrowed. Western U.S., F.O.B. Cream Multiples Range - All Classes: 0.8000 - 1.2000