Fluid Milk and Cream - Western U.S. Report 27
California milk supplies and demands are well balanced. Handlers report not having any issue with milk volume management. Milk production is unchanged from the previous week. Class I sales are steady to declining. As processing plant managers prepare to close for the Fourth of July holiday, their intakes will be lower toward the end of the week.
In Arizona, milk production is at seasonally low levels, but manufacturers are not concerned as they planned for this time of the year. Some of them are taking advantage of the slowdown in their activities to focus on repair and maintenance projects. Milk volumes are enough for pressing processing needs. With several plants preparing to close for the upcoming holiday, Class I sales are decreasing. According to industry contacts, there is a push to put more milk toward cheese outputs. Dryers are not running at full capacities.
According to industry contacts, a milk production reduction program remains in place through the month of July in New Mexico. This is helping to keep milk volumes manageable in the state. Steady loads of milk are being moved to balancing facilities, but the volumes will increase during the holiday when some plants close. Class I sales are flat to trending lower, but Class III demands have augmented. There were more repairs and maintenance projects this week, but they had minor impacts on milk processing schedules.
Pacific Northwest milk production is stable. Industry contacts report milk intakes are in good balance with processing needs. As some plants ease back over the upcoming holiday weekend, others continue to run at full capacity. Class II and III manufacturers are pulling heavily at available milk and cream volumes. Cream supplies are tight and buying spot loads of milk remains one of the less expensive ways market participants can buy milk fat.
In the mountain states of Idaho, Utah, and Colorado, milk supplies are getting into better balance with processing needs. Milk production is steady to lower. Most manufacturers are running near peak capacity, but have also maintained milk production supply controls to keep milk output in check. Industry contacts report milk supplies are a little tighter than earlier this spring, but some spots loads are still available at $4 under Class IV.
Condensed skim is just enough to meet planned processing needs, but it is a bit limited for spot buying. Manufacturers are shipping out a few loads to help meet customers' needs whenever they can.
Western cream remains tight. Class II buyers, particularly ice cream makers, are taking many loads of cream. Butter processors, on the other end, cannot always afford cream due to the higher costs. Cream multiples for all Classes are slightly down at the top of the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1300 - 1.3000