Fluid Milk and Cream - Western U.S. Report 50

Fluid Milk and Cream - Western U.S.

     Report 50 - Released on December 12, 2019

     In California, there is a lot of milk available for processing. As so, spot milk prices are a bit down. Milk production remains stable to increasing in most parts of the state. Class I demands are unchanged from a week ago. 

Milk yield is trending higher in Arizona, but it continues to be lower compared to the previous year. The state is self-sufficient in producing and utilizing milk. There are seasonally high pulls of Class I milk for holiday needs. However, by the end of next week, demand is expected to be low. Class III interests are also increasing, whereas requests for the other Classes of milk are steady. 

In New Mexico, milk supplies are a bit down. Class III sales have decreased. Downtimes at a cheese processing plant are preventing the plant manager to take the usual loads of milk. However, no issue has arisen from redirecting the milk to other Classes. Class I intakes are increasing, whereas Class II sales are stable. Balancing needs have declined. 

Pacific Northwest milk production continues at a strong, steady pace. Bottling demand is following typical seasonal patterns. Manufacturers report having plenty of milk for processing needs.
     

In the mountain states of Idaho, Utah, and Colorado, milk intakes remain strong. Industry contacts do not expect much let up in milk production over the next few weeks. The region has a good carryover of water, and inventories of silage are sound. There may be some pressures on dairy hay prices due to tight supplies elsewhere, but mountain state farmers    appear to have good stocks of forages on hand. Manufacturers are running their facilities at or near full capacity. A few discounted milk loads are available in Idaho on a regular basis. 

Condensed skim sales are steady and most of the loads are being sold through contracts. As the result, spot trading is limited. In the West, cream supplies are abundant. Many sellers are struggling to clear spot loads. 

Cream multiples for all Classes increased  at the top of the range.

     NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/06/2019 to 12/12/2019

     Half Gallon, All Fat Tests      Weighted Average Price
     National                 This Period   Last Week   Last Year
     Conventional                $1.61         n.a        $2.33
     Organic                     $4.37        $3.71       $3.71

     Regional (Organic)         Wtd. Ave.      Low         High
     Southwest                   $2.99        $2.99       $2.99

     Gallon, All Fat Tests           Weighted Average Price
     National                 This Period   Last Week   Last Year
      Conventional               $3.16        $3.49       $3.25
      Organic                    $6.99         n.a        $4.80

     Regional (Conventional)    Wtd. Ave       Low        High
     Northwest                   $1.99        $1.99       $1.99

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0100 - 1.2200

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