Fluid Milk and Cream — Western U.S.
California milk production is following seasonally higher trends. Milk is moving to the intended Classes with no big deviation from usual volumes. Processing plants are running near full capacities. Interests from bottlers are unchanged from a week ago. Class II demand is somewhat up.
Arizona milk output is stable to a bit up. Weather conditions are favorable for milk production as well as improved milk solids content. Class I demand is steady compared to last week. Processing plants are running according to expected schedules.
With recent changes to weather conditions in New Mexico, milk yield has been fluctuating from day to day. However, the total weekly loads are about the same as in the previous week. Handlers also report close to stable intakes from customers. Class I and II sales are flat, whereas Class III requests have considerably increased. Balancing volumes are also slightly up this week.
Milk production in the Pacific Northwest remains strong. Normally, milk intakes are at their lowest point in the late fall, but so far, moderate temperatures have kept the milk flowing and pipelines filled. Bottling demand is steady, and dairy manufacturers report having plenty of milk for processing. In addition, milk handlers say milk components are at seasonally high levels.
In the mountain states of Idaho, Utah, and Colorado milk production is strong. While intakes are generally in good balance with processing needs in Colorado, in northern parts of the region, milk production is outpacing available processing capacity.
Some industry contacts feel there is too much milk, and discounted milk loads of $4.75 below Class IV are common. There are ample loads of condensed skim in the West as milk supplies are plentiful in the region. Drying schedules are busy.
Cream demand has been stabilizing over the past weeks. Spot market activities are stable as buyers focus on taking what they need. Cream prices increased a bit at the top of the range. Supplies are readily available for butter making and other uses.