Fluid Milk and Cream - Western U.S. Report 29
California milk yield is steady to trending down. Weather conditions have not much affected milk production volumes yet. Processors report having plenty of milk to meet their manufacturing obligations. Class I demands are steady and unlikely to change for the coming weeks. Due to COVID-19 restrictions, some Class II orders were cancelled as several restaurants reclose. The milk market is steady.
In Arizona, despite big increases in temperatures, reaching the three-digit numbers, farm milk production hasn't declined much. The monsoon and the humidity it creates, hasn't kicked in yet, which is one of the reasons why milk output hasn't dropped as expected. Milk supply is stable and in good balance with sales. Bottled milk demands are flat. Processing plants are running below full capacities. New safety measures put in place due to the upticks in COVID-19 cases have affected milk distributions and processing schedules. A few Class II orders were cancelled.
Milk supplies have declined in New Mexico this week, mostly as a result of seasonally declining milk production. While Class I and III orders are trending lower, Class II demands have slightly increased. Altogether, milk holdovers are at normal levels and remain manageable despite machine repair projects that disrupted the day to day activities at a Class III plant.
Pacific Northwest milk production is easing back from the spring flush. Industry contacts report milk output is decreasing, but milk component levels have remained strong. Favorable weather has aided in cow comfort and supported milkfat and protein concentrations. Dairy farmers had adjusted feed rations and schedules to meet over base programs imposed by milk handlers. In doing so, milk intakes are in good balance with processing needs. Bottling demand is steady.
In the mountain states of Idaho, Utah, and Colorado, milk production is past the typical spring peak. Manufactures say there are a few discounted loads available at $4 under Class IV. But the number of unfettered loads is smaller than earlier this spring. Government purchases are supporting the movement of milk into cheese production and into some fluid milk bottling.
Condensed skim prices have augmented in the West. There is also an uptick in demand from ice cream producers. In the West, ice cream makers are still pulling heavily on cream. Some cream sellers are taking loads in the West at lower prices and selling them in the Midwest where prices are higher. Some cream loads are also being moved from one western state to another to help meet processing needs. According to contacts, cream demands from Mexico are trending up as well. At some western localities, there is more cream available for spot sales compared to last week. Nonetheless, cream supplies are still tight. Cream multiples for all Classes are steady on the range, but a few situational loads were sold at prices well below the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1500 - 1.3000 Information for the period July 13 - 17, 2020, issued weekly Secondary Sourced Information:
Milk pooled on the Pacific Northwest Order 124 totaled 614.4 million pounds in June 2020. Class I utilization was 135.4 million pounds and accounted for 22.04 percent of producer milk. The uniform price was $15.17, up $3.20 from last month, but $1.77 below the same month a year ago.
Milk pooled on the Arizona Order 131 totaled 375.8 million pounds in June 2020. Class I utilization was 98.6 million pounds and accounted for about 26.2 percent of producer milk. The uniform price was $15.50, up $3.12 from last month, but $1.82 below the same month a year ago.