Fluid Milk and Cream - Western U.S. Report 31
In California, milk production is unchanged from a week ago. Class I sales are stable. Class II and III requests are strong. As the school year is about to start in a few weeks, industry players are reassessing market conditions and wondering how the COVID-19 restrictions will affect Class I milk demands. Meanwhile, processing schedules are not as busy.
In Arizona, milk volumes produced are at low levels. With hotter summer weather conditions, cows are beginning to feel less comfortable. Bottled milk sales are generally stable. Class II requests are still strong. Not much milk is leaving the state. Milk supplies are just enough to satisfy buyers' needs.
New Mexico milk production has come up a bit. Despite some issues at a couple of plants, there were no major disruptions in milk distribution schedules this week. Balancing needs have decreased as total requests for milk have increased this week. Class I sales have declined, whereas Class II demands are trending higher. Class III intakes are steady.
In the Pacific Northwest, temperatures have been warmer than normal, reaching the three-digit numbers. As so, milk production has declined a bit, but remains within seasonal norms. Some processors are bringing in out of state milk to help meet current needs. Manufacturing plants are running below full capacities. Class II intakes remain solid, whereas Class I requests are flat.
In the mountain states of Idaho, Utah, and Colorado, milk yield is stable to declining. The warmer weather conditions are affecting how much milk cows are producing. Although there are a few discounted loads of milk available for sale, milk supplies and demands are more balanced this week compared to a few months ago. Processors are pulling heavily on milk supplies.
Condensed skim is available to meet the immediate needs of buyers. Sales are steady. In the West, cream supplies have further loosened. Although ice cream is flying off the shelves, and ice cream makers are still taking many loads of cream, there are still enough supplies for butter production. Cream multiples for all Classes have decreased at the top of the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1000 - 1.2800