Fluid Milk and Cream - Western U.S. Report 35
In California, milk output is flat. Supplies are adequate for current sales. However, they are expected to increase during the Labor Day holiday as many processing facilities will be closed. Meanwhile, fluid milk demand is steady to a bit up, whereas Class II sales are steady.
Arizona milk yield has increased a bit this week. Out-of-state milk is still being used to complement processing needs as in-state supplies are not sufficient. Handlers continue to take their usual loads of milk. Class I sales are steady to down as educational institutions prepare to close for the holiday.
In New Mexico, more milk is going to balancing plants this week. Milk output has bounced back from last week's decline. Class I sales are steady, but Class II demand decreased. Overall, Class III requests are trending higher despite reduced intakes from some cheese producers. Handlers are looking to increase their hauling capacities, so they can move some milk to other localities.
Industry contacts in the Pacific Northwest suggest milk production has reached the peak and is starting to back off. Milk volumes may be a little less, but components have been running strong. Bottling demand has stepped higher with many schools starting fall terms next week. Manufacturers have plenty of milk for processing needs.
Milk production in the mountain states of Idaho, Utah and Colorado remains strong. The school milk pipelines have filled, and manufacturers have plenty of milk available for processing. Most of the milk can find a home nearby, but some milk is getting heavily discounted in Idaho in order to get placed into surrounding regions.
The condensed skim market conditions are mostly steady, with no major changes reported in inventories. Sales have declined.
Cream is more available in the West this week. With the Labor Day holiday near the corner, cream demand has decreased. Nonetheless, supplies are still balanced with demand.
Cream multiples have backed down, ranging from 1.05-1.31. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 8/23/19 to 8/29/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.30 $2.01 $2.67 Organic $3.90 $4.09 $3.77 Regional (Organic) Wtd. Ave. Low High Northwest $3.99 $3.99 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.53 $2.96 $3.00 Organic $5.79 $4.99 n.a. Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.67 $1.99 $2.98 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.3100