Fluid Milk and Cream - Western U.S. Report 24
Fluid milk production is steady to declining in California. Despite Recent high temperatures, milk components havenśt changed much. Milk supplies continue to be adequate for most processing needs. Bottled milk intakes are mixed with some high and low requests reported. There have also been some out-of-state sales to balance milk volumes.
Arizona milk is steadily flowing without any issues from dairy farms to manufacturing facilities. Milk loads are available to fulfill all demand in the state despite steady to lower output. Though, the supplies going to balancing facilities is decreasing. Class I sales are stable, whereas Class II is level to up. New Mexico milk volumes are lower compared to last week, but holdovers are higher because of unplanned repairs and maintenance works. A few plants had to reduce their daily intakes and focus on fixing issues with their machines. Class I and III sales has improved, but Class II demand is trending lower.
A combination of lower milk output and lower overall demand helped in keeping milk loads balanced in the New Mexican dairy market. Pacific Northwest milk intakes are lower than expected according to some industry contacts. This equivocal view of the milk supply suggests an expectation of heavy milk provisions, and yet, production appears to be in relatively good balance with processing needs. While the region is at or near spring flush, some contacts relay they could take in more milk if it was available. Recent hot weather may be slowing milk production, but probably minimally. Cooler nights are allowing cows to recharge and is keeping milk production generally steady. Cream supplies are in demand from butter and Class II manufacturers. So far, cream availability is adequate to meet most needs, but a continuation of heat may reduce components and place more challenges for cream users.
Bottling demand has regulated back into typical summer patterns as most educational institutions are on summer break, and summer meal programs have replaced school lunch programs.
Milk production in the mountain states of Idaho, Utah and Colorado is steady. Favorable weather has been conducive to cow comfort. Dairy contacts say milk intakes are in good balance with processing needs. The occasional processing facility hiccup may push a few loads of milk into the surrounding area, but most loads are able to find a home quickly. Hay harvesting is moving ahead at earnest and area contacts suggest there is plenty of water for irrigation.
Western condensed skim sales are consistent with expectations, but spot loads are almost nowhere to be found. Overall, there is a steady flow of condensed skim to nonfat dry milk producing plants. Cream stocks are adequate for most contractual requirements, but they are a bit restricted for spot needs.
With hotter weather conditions in many areas of the West, cream availability is expected to further decline. Class II cream multiples are expensier, reaching the 1.28 mark, whereas cream multiples for all Classes have plateaued at 1.25. There are reports that more cream is going to Class II production, causing in some instance inadequate supplies of cream for butter churns. National Retail Report Dairy ą Fluid Milk Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 6/07/19 to 6/13/2019
Half Gallon, All Fat Tests Weighted Average Price
National This Period Last Week Last Year Organic $4.09 $3.90 $3.61 Conventional $1.26 $1.54 $2.10 Regional (Organic) Wtd. Ave. Low High Northwest $3.70 $2.49 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.02 $5.99 $5.42 Conventional $2.78 $2.38 $2.95 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.98 $2.98 $2.98 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1200 - 1.2500