Fluid Milk and Cream — Western U.S.
In California, milk output is steady to a bit up. Manufacturing facilities are being operated at or close to full capacities. Some loads of milk are coming from other states for clearing. Class I sales have picked up as schools replenish their pipelines for the new semester.
In Arizona, milk supplies are abundant. Processing plants are full of in-state and out-of-state milk. Plant managers report receiving inquiries to bring out-of-state milk for clearing. However, they are not able to take all the loads because of limitation in processing capacities. Class I intakes have augmented compared to a week ago due to the reopening of educational institutions. Class II and III demands are stable. Milk output is strong.
In New Mexico, good weather conditions are helping maintain strong milk production. Milk supplies are plentiful. Unexpected down times at a few processing facilities have caused an increase in milk holdovers. However, handlers are managing milk loads without any major problem. Class I, II, and III sales are all up. Balancing needs have diminished compared to last week.
Pacific Northwest milk production is very strong, and according to dairy contacts, well above projections. Farmers and cooperatives are trying to keep milk supplies under control, often feeding for milk components instead of volume. Manufacturers are running at or near full capacity. And while school milk bottling has returned to normal operations, it is enough to soak up only part of the available milk.
Milk production in the mountain states of Idaho, Utah, and Colorado, is seasonally strong. Many manufacturers are running near full capacity, but available milk in Idaho is outpacing processing capacity.
Industry contacts report large volumes of Idaho milk is moving into Colorado, the southwestern states and the Midwest. Discounted milk loads are common in the region.
Western condensed skim drying is still active, but not as much as last week. Availability is high as milk production is strong. Mexican buyers are showing more interests in condensed skim.
Cream is widely available in the West. Cream churning is very active as it is the most effective way to clear loads in the midst of low sales. Cream multiples for all Classes have improved at the bottom of the range when compared to last week numbers.