Fluid Milk and Cream - Western U.S. Report 28
In California, milk production is stronger this week, after being low for most of the month of June. Since this weekend, a few plants are full of milk, running close to full capacity. Milk supplies, although plentiful, are manageable. Bottled milk sales are flat.
Arizona milk yield has been mostly flat to declining this week. Milk components have declined in the course of the past weeks. Higher temperatures, reaching the three-digit numbers, are putting a toll on cows' well being. During the past weekend, spot milk supplies increased as many plants were closed for the holiday. Class I intakes are unchanged from last week's levels. Class II demands are still strong, but not as much as in previous weeks. There hasn't been any movement of milk across state lines.
In New Mexico, milk outputs remain in good balance with sales. Production is within what industry participants expected. As so, loads of milk are flowing steadily to their pre-scheduled destinations. Milk demands for the retail sector are flat. Class III intakes are strong. Maintenance and repair projects are ongoing as processors take advantage of the slowdown in their schedules to prepare for the busy manufacturing season.
In the Pacific Northwest, farm milk yield is at seasonal levels. The weather conditions have been cooler than in other parts of the West. As the result, milk production is also stronger. Class II and III processors are taking more loads of milk and cream. Class I sales are steady. Balancing facilities are running at near full capacities in some areas. Spot milk is easy to get for whomever needs it.
In the Mountain states of Idaho, Utah, and Colorado, milk supplies and demands are in good equilibrium. Outputs are unchanged to a bit down. Handlers are able to manage all the milk available for distribution. Although milk volumes are a bit tighter compared to the beginning of the spring, there are spot loads available at affordable prices. Class I sales are flat.
Western condensed skim sales into ice cream production have picked up. A few manufacturers are receiving unsolicited inquiries from customers in quests for more condensed skim. Supplies are steady.
Although the western cream market is still firm, supplies are somewhat more available than they were a few weeks ago. During the past holiday weekend, supplies had increased. Some butter manufacturers continue to sell their cream instead of churning it.
In the Pacific Northwest, contacts indicate cooler temperatures are affecting how much ice cream is being consumed. Western cream multiples for all Classes have increased at the bottom of the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1500 - 1.3000