Fluid Milk and Cream — Western U.S.
In California, farm milk production is steady at the moment, but according to market players, it is higher than last year at this time. Processing plants are getting the milk they need for their daily activities. Fluid milk demand from grocery stores and schools are flat. Class II sales are steady to a bit down.
In Arizona, milk output is unchanged from the previous week despite some rain at the beginning of this week. Handlers are taking their usual volumes. Class I demand is stable. The loads of milk within the state are enough for all needs fulfillment. Therefore, no milk is coming from out-of-state.
In New Mexico, there is a steady flow of milk to Class I accounts. Class II interest is not as strong as in previous weeks. Balancing schedules are stable. Fluid milk production is mostly steady. Manufacturing plants are running close to full capacities, but holdovers of milk remain under control.
Pacific Northwest milk production is seasonally slowing; however, manufacturers report intakes are above last year. There is plenty of milk available for most processing needs. Favorable weather is aiding cow comfort and milk handlers expect steady output to continue into the next few weeks.
Milk production in the mountain states of Idaho, Utah and Colorado continues at a robust rate. Production per cow may be in seasonal decline, but more cows added into the milk herd keep manufacturing facilities full. Dairy contacts in Idaho suggest it is tough to balance the milk supply with processing needs. Most facilities are full and any small disruption results in the availability of discounted loads. Condensed skim contractual sales are steady, but spot demand is lower.
Cream demand is quiet in the West because of the declining interest from buyers. Freight costs are limiting western sellers’ ability to move cream to other regions. Some contacts say that there is currently more cream in the western market compared to a year ago. There have been some contracting requests for 2020 cream needs. Cream multiples have declined by one cent at the top of the range.
National Retail Report
Advertised Prices at Major Retail Supermarket Outlets Sept. 26
Half Gallon, All Fat Tests Weighted Average Price