Fluid Milk and Cream — Western U.S.
Some industry contacts report that California’s peak flush is likely in the rearview mirror. Milk production is following seasonal patterns; while April is up slightly year over year, the rate of output is very slowly decreasing. Class I orders are level. Spot milk sales and requests are limited as the market is still tight.
Milk output is steady, and Class I demand in Arizona is high. Bottling plants and other dairy manufacturers are active.
Milk production is steady in New Mexico, and Class I orders are flat. High holdover numbers and limited tanker availability have created some hauling and processing delays. However, balancing plants are maintaining busy production schedules, and contacts have not relayed any instances of milk discarding.
Weather in the Pacific Northwest is optimal for cow comfort, and milk is in good supply. After an accidental fire recently damaged an Oregon dairy plant, partner plants and other regional dairy processors have been working to help clear milk originally destined for the damaged plant. Class I demand is strong, and bottling is active despite some lingering milk jug resin sourcing difficulties.
Milk production in the mountain states of Idaho, Utah, and Colorado is strong. Some industry contacts say there is a slight decline in Class I demand. Spot sales of condensed skim are limited, but contracts are steady. There is some slight tightening of cream, but available supplies are still meeting the demands of seasonal butter and ice cream production schedules. Cream multiples for all classes are unchanged from last week.
Pacific Northwest Market Order: Milk delivered to the Pacific Northwest Order 124 totaled 627.3 million pounds in March 2021. Class I utilization was 139.2 million pounds and accounted for 22.2 percent of producer milk. The uniform price was $15.15, up $0.72 from February 2021, but $0.96 below the same month a year ago.
Arizona Market Order: Milk delivered to the Arizona Order 131 totaled 357.1 million pounds in March 2021. Class I utilization was 113.1 million pounds and accounted for about 31.7 percent of producer milk. The uniform price was $15.55, up $0.86 from February 2021, but $1.01 below the same month a year ago.
California Market Order: Milk pooled on the California Order 51 totaled 2.037 billion pounds in March 2021. Class I utilization was 429.8 million pounds and accounted for about 21.1 percent of producer milk. The uniform price was $14.85, up $0.86 from February 2021, but $1.17 below the same month a year ago.