Fluid Milk and Cream — Western U.S.
In California, milk yield is stable. Bottled milk demand is declining because educational institutions are set to close next week for the holiday.
Milk supplies are plentiful, but manufacturing plants have enough processing capacities to manage all the loads. Last minute Class II orders are being fulfilled.
In Arizona, despite increasing milk output, production is still below last year’s levels. Manufacturers are requesting more Class II milk to fill holiday requests. Class I sales are down as schools prepare to close for Thanksgiving. The rain in some parts of the state has caused some delays with milk delivery schedules.
In New Mexico, milk supplies are stable. Processors’ demands for milk have risen, reducing balancing needs. Repair/maintenance work at a Class III manufacturing facility has caused a decline in Class III milk orders. However, Class I, II, and especially Class IV demands have augmented and helped in maintaining a well-adjusted market condition. Milk production is stable despite cooler temperatures.
Pacific Northwest milk intakes are keeping processing facilities at or near full capacity. Bottling demand is steady. Farm milk production remains strong, with seasonally high component levels.
Milk production in the mountain states of Idaho, Utah, and Colorado remains strong. Since last year, dairy producers have added cows to the herd. Current milk intakes are keeping processing facilities filled. Industry contacts are trying to figure out where to go with extra milk over the holiday.
Some manufacturers plan to run shortened schedules. Because discounted milk loads of $4.75 below Class IV are already common, some contacts think there could be a few orphaned loads of milk.
Condensed skim is being actively dried as the nonfat dry milk market strengthens in the West. Prices are steady. Cream offers are mixed in the West. Contractual and short-term requests have been stable to declining depending on the vendors. While some processors report that cream is being more absorbed in the process of making various holiday dairy products, others say that they have a lot of cream at hand.
Some sellers from Idaho are attempting to send some cream to Arizona without success as Arizona processors have enough cream and are not willing to take additional loads.