FLUID MILK AND CREAM REVIEW – WEST
(USDA Market News)
This week, California milk supplies are lavish. However, market participants report lower spot prices. Milk production is rising up, and certain manufacturers have tight processing capacities because of internal reasons. Consequently, some milk and condensed skim are moving out-of-state to find new homes. Class I demand is flat.
Arizona milk outputs are trending up as they approach their spring flush. To help balance inventories, a few manufacturers are moving some loads of milk to California. Many plants are currently working at full capacity.
A couple of contacts report that this year milk outputs are more than last year’s. This is creating more challenges with processing capacities. Class I sales are steady in that educational institutions/retail stores are taking their habitual loads.
Sales to Class IV are higher. New Mexico milk is finding homes within the state. Balancing plants are busy, working at full capacities to clear the abundant loads of milk they have.
Milk yield is higher this week. Class I and III intakes are up while Class II demand is steady.
Pacific Northwest milk production is stable. Weather patterns have influenced output only slightly. Manufacturers report adequate volumes of milk, and intakes are generally in good balance with processing needs. Very few ad hoc production runs are required to use available milk supplies. Bottling demand is steady.
Milk production in the mountain states of Idaho, Colorado and Utah is steady. Manufacturers report plenty of milk available for most processing needs. A few processors scheduled downtime for maintenance and repairs. As a result, milk handlers had to shuffle a few loads of milk between facilities.
Industry contacts report a few discounted loads moving within the region to find a processing home. Condensed skim supplies are still ample in the western dairy market.
A few producers are finding it difficult to locate additional processing room out of state. Western cream stocks are more than sufficient to meet end users’ needs. Nonetheless, stocks seem to be stabilizing a little bit.
Cream multiples for all Classes have increased at the bottom of range. They are 1.00-1.20. According to the DMN National Retail Report-Dairy for the week of Feb. 23-March 1, the national weighted average advertised price for one gallon of milk is $2.77, down $0.19 from last week, but up $0.46 from a year ago.
The weighted average regional price in the Southwest is $2.33 with a price range of $1.99-$2.79. No advertised ads for one Gallon milk were reported in the Northwest this week.
According to California Department of Food and Agriculture, January 2018 pool receipts of milk in the state total 3.26 billion pounds.
This is 1.0 percent higher compared to the same month a year ago. The Value at Test price is $14.83, $.62 lower than the previous month, and $2.52 below a year ago. The percentage of receipts used in Class 1 products is 13.59 percent. The January quota price is $14.94 and the over quota price is $13.24. These prices are $.46 below last month and $2.41 lower from a year ago.