Fluid Milk and Cream - Western U.S. Report 25

California milk supplies are down and are not always enough to fill spot demands. However, the most pressing needs can be taken care of without any major issue. Milk production is still lower. Class I sales are steady. Class II demands are somewhat increasing. A few ice    cream manufacturers are taking more milk for their production needs. Milk component levels are down. 

In Arizona, farm milk output remains unchanged from a week ago. Milk volumes produced are enough to meet the needs of buyers. However, there is no surplus milk available for additional buying. Processing facilities are running a bit below full capacity. Bottled milk demands are steady, whereas Class II requests are ramping up due to increased ice cream production. No milk is coming from other states. 

Milk production in New Mexico is flat to declining. The warmer weather conditions are impacting milk yield. Nevertheless, manufacturers are getting their needs filled. Holdovers are back to normal levels as the     machines that were down last week are back up and running. Milk supplies are manageable. Class I and II sales are steady. 

In the Pacific Northwest, milk production has plateaued. Milk handlers and farmers are keeping milk intakes in good balance with processing needs. Most manufacturers are running at or near full capacity. Bottling demand is steady. Class II processors are soaking up much of the cream, and a lot of milk fat is getting tied up in cheese production as well. Cream supplies remain tight. 

Milk production in the mountain states of Idaho, Utah, and Colorado remains heavy. Seasonal weather is not putting much of a damper on milk production. Many manufacturers are running well above designed capacity for their facilities, but milk availability is not an issue. Within the region, some spot loads of milk are priced at $4 under Class IV. Industry contacts also report milk handlers are sending a few loads of milk out of state at lower prices. 

Condensed skim drying is active. Some loads are going to Class II processing. Condensed skim supplies are limited. 

Western cream availability continues to be tight, but not as much as last week. Demands are still strong, but have relaxed a bit compared to the previous week. Cream multiples for all Classes are steady on the range. According to industry contacts, a few loads of western cream are being transported to the Midwest.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1300 - 1.3500

     Information for the period June 15 - 19, 2020, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled $641.8 million pounds in May 2020. 
     Class I utilization was 135.6 million pounds and accounted for 21.13 percent of producer milk. The uniform price was $11.97, down $1.18 from last month, and $4.65 below the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 434.5 million pounds in May 2020. Class I utilization was 102.3 million pounds and accounted for about 23.5 percent of producer milk. The uniform price was $12.38, down $0.95 from last month, and $4.56 below the same month a year ago.

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