Fluid Milk and Cream - Western U.S.

Jan. 24

Milk production throughout the state of California is even. Class I sales in Southern California are down because the strike in the Los Angeles school district caused the closure of the schools for several days. However, bottled milk orders in the remaining regions of the state are steady. Interest for Class II is stable.

In Arizona, milk production is strong, but remains below last year's volumes. Therefore, processing facilities are not as busy. Nevertheless, they continue to run at full capacity. Bottling milk requests are at the same level as the previous week.

Class III pulls are rising because more cheese is being produced for the Super Bowl season. The milk market tone is stable in Arizona with no milk entering or leaving the state.

This week, New Mexico farm milk yield is stronger compared to a week ago. The seasonally moderate weather is bringing some extra comfort to dairy cows. Consequently, their milk productivity continues to improve. Class I and II sales are both trending up whereas Class III demand has declined a bit.

Milk holdovers are also back to normal levels as processors find ways to efficiently clear the loads. Milk volumes moving to the Southeast decreased.

Pacific Northwest milk production is strong. Milk intakes are following typical seasonal trends. Bottling demand is steady and there is plenty of milk for most processing needs. Many manufacturers are running at or near capacity.

In the mountain states of Idaho, Utah and Colorado, milk intakes are in relatively good balance with processing needs. Milk production is heavy, but processors are running near full capacity.

Only a few loads are leaving the region in search of a processing home. Condensed skim is moving well in the West. Many loads are being cleared into nonfat dry milk. Cream is relatively heavy in the West.

Most churning facilities are full as they take on contracted volumes. Some of them can't afford to take on too much spot cream due to limited processing space. Ice cream makers continue to request a few more loads of cream as well. Cream multiples for all usages are ranging 1.00-1.16 this week.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 1/18/19
     to 1/24/2019

     Half Gallon, All Fat Tests          Weighted Average Price
     National                 This Period    Last Week     Last Year
       Organic                   $3.72         $3.84          $4.11
      Conventional               $1.70         $2.25          $1.92

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

     Regional (Organic)         Wtd. Ave.       Low            High
      Northwest                   $3.99        $3.99          $3.99
      Southwest                   $3.99        $2.99          $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                  This Period   Last Week      Last Year
      Organic                     $5.99        $5.65          $6.99
      Conventional                $2.79        $2.95          $2.39

     Regional (Conventional)    Wtd. Ave.       Low            High
      Northwest                   $1.99        $1.99          $1.99
      Southwest                    n.a.         n.a.           n.a.

     Regional (Organic)         Wtd. Ave.       Low            High
      Northwest                   $5.99        $5.99          $5.99
      Southwest                    n.a.         n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.1600

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