Fluid Milk and Cream - Western U.S. Report 38
California milk supplies are balanced. Contacts report that the milk market is recovering from the recent heatwaves that have impacted milk production. More customers are looking for additional milk for processing as they have available capacities. However, they can't always find additional spot loads. All pressing manufacturing milk needs are being met. Class I sales are at the same levels as last week.
Milk output is steady to somewhat up in Arizona, partly due to cooler temperatures in the evening that are allowing cows to recharge from hot daytime temperatures. Industry participants report having adequate milk supplies for their day to day activities. Bottled milk requests are stable. Class II sales are down. The school meal program is bringing some balance into the U.S. milk market.
New Mexico milk production is close to being steady. Despite ongoing repair and maintenance projects, milk loads are being efficiently used among plants that can take more than their usual volumes. Class I and II sales are unchanged from a week ago, whereas Class III processing is active. Overall, the market undertone is steady.
In the Pacific Northwest, milk production is steady to lower. The cows are milking. Milk handlers are picking up the milk. And manufacturers are busy processing the milk. While this is generally proceeding without interruptions, the wildfires across the Northwest are creating poor air quality and stress on cows and farmers. In some cases, farmers have had to move their herds out of the fire danger. In other cases, the fires have destroyed supplies of forage and bedding. A few processors have been on alert, ready to evacuate their processing facilities if the fires come too close. Most dairy processing is at or near full capacity. Bottling demand is steady.
Milk production in Idaho, Utah, and Colorado, is steady. While air quality is poor, the effect on dairy production is minimal. Manufacturers report not having any trouble getting the milk needed for processing. Milk and cream are both readily available. A few spot loads of discounted milk in Idaho are obtainable. In the West, there is enough condensed skim available to processors. Prices are steady.
Western cream sales have subsided a bit. As the result, several manufacturers are churning more butter to clear available cream loads. Cream multiples for all Classes are unchanged from a week ago. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2500 Information for the period September 14 - 18, 2020, issued weekly Secondary Sourced Information:
Milk pooled on the Pacific Northwest Order 124 totaled 627.3 million pounds in August 2020. Class I utilization was 130.1 million pounds and accounted for 20.74 percent of producer milk. The uniform price was $16.16, down $0.95 from last month and $1.44 below the same month a year ago.
Milk pooled on the Arizona Order 131 totaled 299.0 million pounds in August 2020. Class I utilization was 97.4 million pounds and accounted for about 32.6 percent of producer milk. The uniform price was $15.84, down $0.28 from last month and $2.27 below the same month a year ago.