Fluid Milk and Cream - Western U.S. Report 33
In California, milk supplies remain in good balance with demands. Production is stable to a bit up. Although milk is clearing well through the different distribution channels, from time to time spot loads are available to buyers. According to contacts, several plants in the Central Valley are running at full capacities and have limited ability to sell any of their milk.
In Arizona, milk yield is steady as cows are able to recharge during the evening when temperatures are a bit cooler. Milk sales are generally stable. Class I intakes are unchanged from a week ago. According to industry players, when schools resume in a few days, students will be receiving milk through the school meal program. This could help boost bottled milk demands. There hasn't been any big inflow of milk from other states or outflow of milk to other states.
Despite the weather being warmer, New Mexico milk production has been consistent with last week's volumes. In order to ensure good milk cooling, a few processors slowed their production schedules to repair milk tanks. This did not create any major issue with milk distribution schedules. Class I and III sales have declined, but Class II demands have increased. The milk market is balanced in New Mexico.
Pacific Northwest milk production is steady. Milk handlers and farmers have maintained milk output to keep processing facilities full. Production is in balance with processing needs. With a number of educational institutions starting the school year online over the next few weeks, the push for school milk bottling is less than usual. Retail bottling is steady and comparable to what it has been throughout the summer.
Dairy contacts in the mountain states of Idaho, Utah, and Colorado say milk supplies are more available. As cheese prices have fallen across the nation’s cash markets, some cheese producers have released more milk. Milk handlers are scrambling to find homes for the now available milk. Spot milk prices in Idaho are $4 under Class IV. In some cases, contacts report delivery costs are included in those prices.
Condensed skim is accessible to all buyers. Prices are flat.
In the West, cream is more available compared to the past week. Ice cream buyers are not taking as much cream as they were a few weeks ago. While retail ice cream sales are strong, food service ice cream demands are not doing well. Cream multiples for all Classes are trending lower at the top of the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2500