Fluid Milk and Cream — Western U.S.

April May 2

Fluid Milk and Cream - Western U.S.

     Report 18 - Released on May 02, 2019

     California milk volumes produced are seasonally strong, in line with expectations.
     Manufacturing facilities continue to function at or near full performance levels to clear
     all the milk loads available to them. Overall, milk supplies are in good balance with
     requests. In Arizona, there is enough milk available for processing duty fulfillment. Milk
     production is close to peak volumes as the spring flush is currently ongoing, but will be
     ending soon. Yet, manufacturers report that this year, milk loads have not reached that of
     the previous year. The balancing of milk is active for Class IV. Class I sales are the same
     as last week, but are susceptible to decline during the upcoming summer break. New Mexico
     milk production is mostly level. The supplies of milk available to processors are a bit up
     due to lower overall sales to the different Classes of milk.  Class I, II, and IV intake
     volumes declined whereas there was a bit of uptick in Class III demand. Cleaning and
     mechanical repair of processing machines have changed the delivery schedules/destinations of
     some milk loads, causing lower overall intakes than planned for. For the same reason,
     holdovers are higher than expected, but will likely clear by the end of the week. Milk
     production in the Pacific Northwest continues its spring march upward as pleasant
     temperatures cover much of the region. Bottling demand is steady and manufacturers report
     having plenty of milk available for processing. In some cases, contacts say there are a few
     loads of spot milk floating around at hefty discounts, $3 to $4 under Class. There is also a
     feeling that cream is starting to tighten as ice cream manufacturers ramp up production
     schedules. Milk production in the mountain states of Idaho, Utah and Colorado is strong, and
     steady to higher. Industry contacts report a few hiccups within plants have bumped up the
     amount of milk spot loads. Some of this milk is getting pushed into surrounding areas, but
     processors are getting the issues corrected and shipments are resuming a normal flow. In the
     West, condensed skim is moving steadily through contractual agreements. Inventories are
     unchanged from the prior week. Cream is firming up steadily. Ice cream production is ramping
     up week to week; therefore, some cream loads are moving away from butter production. Still,
     butter churning is active in preparation for the summer needs. Cream multiples are 1.10-
     1.22, up two cents at the top of the range when compared with last week data.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 4/26/19 to 5/2/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             $3.73            $4.27          $3.91
      Conventional                        $1.45            $2.00          $1.83

     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                           $4.00            $3.99          $4.00
      Southwest                           $3.99            $3.99          $3.99

     Gallon, All Fat Tests                    Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             $5.00            $5.15          $6.32
      Conventional                        $3.16            $2.46          $2.14

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                           $1.99            $1.99          $1.99
      Southwest                           $2.45            $1.99          $2.59

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           $5.00            $5.00          $5.00
      Southwest                            n.a.             n.a.           n.a.

     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:               1.1000 - 1.2200

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