Fluid Milk and Cream - Western U.S. Report 44
Milk output in California is following the normal seasonal trend as it fluctuates between steady and up from week to week. This month, milk production has been higher than the previous month, but according to industry contacts, it is lower than last year at this period. Class I milk deliveries are stable to a bit up. According to contacts, some spot milk sold at $0.50 over Class.
Arizona milk yield continues to be on the rise due to the favorable temperature that milking cows are experiencing. Supplies of milk are increasing, but there are enough manufacturing capacities to take care of all the milk. Additional loads are coming in from other states, but trucking issues continue to play a major role on how much milk gets moved. Bottled milk sales are even, whereas Class II processing is steady to a bit lower. Class IV manufacturing is active.
Milk production is seasonally stronger than last month in New Mexico. Yield per cow has been improving as anticipated. Handlers are busy clearing milk loads through the different channels. Outputs are in equilibrium with the needs of the industry. Right now, Class I demands are mostly stable.
Pacific Northwest milk production remains strong and steady. Cool nights, but pleasant days, are supporting cow comfort. Dairy manufacturers report having plenty of milk for processing. Bottling demand is steady. Overall, milk intakes are in relatively good balance with processing needs.
In the mountain states of Idaho, Utah and Colorado, milk production is strong, and with cows getting added to the herd, milk intakes continue to climb. In particular, the abundance of milk is felt in Idaho. Spot milk loads are plentiful and often discounted to $4.75 below Class IV. Some industry contacts say milk handlers regularly ask processors to take on more milk. What manufacturers cannot use within the state is discounted and pushed into surrounding states.
Condensed skim sales are unchanged from the previous week. Buyers are content with their current supplies and are not taking additional loads above what has been contracted.
Western cream supplies remain abundant for the fulfillment of contractual and spot demands. Sale volumes are flat as requests for the holiday are still at low points.
Cream multiples have increased across the range. National Retail Report Dairy – Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/25/19 to 10/31/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $1.99 $2.72 $2.37 Organic $4.19 $3.88 $3.85 Regional (Conventional) Wtd. Ave. Low High Northwest $0.99 $0.99 $0.99 Southwest $2.50 $2.50 $2.50 Regional (Organic) Wtd. Ave. Low High Southwest $3.99 $3.99 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.82 $2.38 $2.56 Organic $5.43 $6.99 $5.70 Regional (Organic) Wtd. Ave. Low High Northwest $6.99 $6.99 $6.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0600 - 1.2300