FLUID MILK AND CREAM
REVIEW – WEST
(USDA Market News)
In California, fluid milk demand increased this week, mostly due to the upcoming holiday.
Some reports say that several processors were running slow last week and are now catching up with their processing duties. Class II sales going into ice cream manufacturing plants increased.
Milk production is generally flat.
However, milk components are dwindling.
Arizona milk output is downward trending. Hotter weather in the triple digits during the day is contributing to a slowdown in production level.
Nonetheless, fluid milk volumes are enough to meet all current needs. Class I sales remain steady.
Milk production is generally past the peak season in New Mexico. Plant managers are able to manage milk loads without any major issue.
This week, output has declined. Nonetheless, supplies are in balance with current demand. Class I demand is unchanged from the previous week, while Class II sales have surged in view of the looming holiday. Intakes from Class III have also moved up.
Pacific Northwest milk production is following seasonal summer trends. Favorable weather continues to support cow comfort and strong milk production. Manufacturers have plenty of milk to fill most processing needs. A few distressed loads are available in the region.
Milk handlers are working to find homes for any extra load ahead of the Fourth of July holiday to keep the number of surplus loads to a minimum.
Milk production in the mountain states of Idaho, Utah and Colorado is strong. In the southern part of the region, there has been some hot weather which is suppressing milk production somewhat.
However, in the north, warm days coupled with cool nights are allowing cows to recharge. Milk production there is strong and building ahead of peak production to come in the next few weeks. There is plenty of milk available to manufacturers. A few distressed loads are available at $4 to $6 under Class within the region.
Most of the milk is staying in state, but a few loads are getting pushed into neighboring states with the added pain of haul charges.
Industry contacts say although they have not heard of any discarded milk, they expect there could be some abandoned next week as loads get backed up from the Fourth of July holiday.
Farmers are busy with the second hay cutting, and with favorable weather and ample water supplies, industry contacts expect the region to put up good quality feedstocks for dairy cows.
Condensed skim is available to meet all buyers requests in the West. Ice cream manufacturers are taking some loads while most of the remaining loads are clearing to Class IV/4a production. Cream demand is good in the West. Ice cream, frozen confection mixes and butter plants are competing for available supplies. Some butter churn operators are opting to sell cream instead of making butter.
According to California Department of Food and Agriculture, May 2018 pool receipts of milk in the state total 3.32 billion pounds. This is 0.1 percent lower compared to the same month a year ago. From January through May 2018, receipts are 0.9 percent higher from the comparable period in 2017. The Value at Test price is $15.53, 51 cents higher than the previous month, but $.37 below a year ago.
The percentage of receipts used in Class 1 products is 12.75 percent. The May quota price is $15.93 and the over quota price is $14.23. These prices are $.57 above last month, but $.53 lower from a year ago.