Fluid Milk and Cream — Western U.S.
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