Fluid Milk and Cream - Western U.S. Report 35
In California, recent heatwaves have affected cows' comfort and therefore impacted how much milk they produced. This week, milk outputs have decreased. There are available processing capacities at several plants. Milk supplies are enough to satisfy pressing needs. Class I demands are slightly down.
Arizona milk yield is lower this week. The state continues to be under heat advisories, but there have only been a few rainy days despite the annual monsoon season being in full swing. As a result, cows have been better at handling the summer this year due to humidity being below normal for this time of the year. Milk balancing schedules are steady. There is no out-of-state milk coming for processing. Bottled milk sales are steady.
In New Mexico, Class I and III orders are increasing, but Class II sales are declining. Milk production picked up a bit despite the triple digit temperatures in recent days. As manufacturers accommodate processing schedules to take care of maintenance projects, some loads of Class III milk were redirected to other balancing plants. Milk holdovers have decreased this week, as did balancing needs.
Pacific Northwest milk production is still strong. Manufacturers are running at or near full capacity. Summer heat has not suppressed output much. Bottling demand is steady. Many schools are opting to start virtually or in a hybrid model, subduing the normal seasonal increase in school milk. Cream is readily available.
Milk production in the mountain states of Idaho, Utah, and Colorado is strong and steady. Milk volumes have yet to ease back much from the cyclical apex of milk output reached in July. Industry contacts say some Idaho manufacturers are struggling to keep up with the milk supply. Spot milk loads in Idaho are available at $5 under Class IV. In addition, unexpected plant issues have caused distressed loads to pop up at lower prices.
In the West, more condensed skim is going to ice cream production. Most of the loads are moving through contracts. Spot demands have decreased. Western cream demands are stable to somewhat dropping.
Cream sales to ice cream makers remain strong, but not as much as in previous weeks. Butter processors are churning more cream. There have been some interests in contracting cream for the fourth quarter of the year. Cream supplies and demands are balanced. Cream multiples are unchanged on the range, but there are situational loads selling outside the range. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2500