Fluid Milk and Cream — Western U.S.

May 30

      Fluid milk production in California is close to the same levels as last week. Milk intakes
     from Class I is steady to higher. Milk loads were handled well over the Memorial Day holiday
     with limited issues noted. Manufacturing schedules remain busy due to a lot of milk
     available for processing. Nonetheless, there is a good balance between the quantity of milk
     supplied and the one requested. In Arizona, milk yield remains lower than customary. At the
     beginning of the week, the weather was cooler, but that did not affect much milk output. The
     volumes of milk produced in-state are enough to satisfy local customers' needs. With some
     schools being out for the summer, bottled milk demand is down. Class II demand is stable. A
     few butter producing plants stop churning while ice cream makers have started to increase
     their production. In Arizona, topsoil and subsoil moistures are both 94 percent adequate to
     surplus. Alfalfa hay condition is 84 percent good to excellent compared to 72 percent a
     week ago. Farm milk output in New Mexico is flat. Total intakes are still down due to
     ongoing repair and maintenance workloads, but milk supplies remain manageable. Class II
     sales are higher as ice cream production has started to take off. Class I demand has also
     slightly increased, but Class III requests have declined. Milk volumes going to balancing
     plants are more than that of the previous week, helping to keep holdovers at check. In New
     Mexico, the first and second cuttings of alfalfa hay are respectively 66 percent and 15
     percent complete compared to 57 percent and 3 percent last week. Topsoil and subsoil
     moistures are respectively 44 percent and 40 percent adequate to surplus compared to 50 and
     47 percent last week. Pacific Northwest dairy manufacturers suggest the region is within
     spring flush. Milk intakes are heavy, but processors say they can handle the inflows just
     fine. In some cases, manufacturers are getting offered extra loads of milk from outside the
     region. However, with plenty of milk readily available close by, processors are not
     generally interested. Cream supplies are tightening as Class II and ice cream manufacturers
     pull heavily at cream stocks. Milk production in the mountain states of Idaho, Utah and
     Colorado is strong. Industry contacts continue to report a few distressed loads at $4 under
     Class moving around the region. Dairy processing facilities are running at or near full
     capacities to keep ahead of the milk intakes. Condensed skim stocks are in balance with the
     need of purchasers. Market conditions are stable. Cream supplies are tighter than last year
     at this period, but remain available to customers. Ice cream and other Class II producers
     continue to take on good volumes of cream for their daily production. However, according to
     industry contacts, several customers are resisting higher cream prices. Ice cream sales are
     also softer in some areas because of mild temperatures. Cream multiples for all Classes are
     1.09-1.25.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 5/24/19 to 5/30/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             $4.26            $4.62          $4.01
      Conventional                        $2.86            $2.12          $2.19

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                           $0.99            $0.99          $0.99
      Southwest                            n.a.             n.a.           n.a.

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           $3.99            $3.99          $3.99
      Southwest                            n.a.             n.a.           n.a.

     Gallon, All Fat Tests                    Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             $6.08            $6.99          $5.06
      Conventional                        $2.80            $2.91          $2.81

     Regional (Conventional)            Wtd. Ave.           Low            High

      Northwest                            n.a.             n.a.           n.a.
      Southwest                           $2.78            $2.65          $2.98

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           $5.00            $5.00          $5.00
      Southwest                            n.a.             n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0900 - 1.2500

Recommended for you