Fluid Milk and Cream — Western U.S.
In California, milk production is unchanged from the previous week. The weather has not much impacted milk yield in recent days. Supplies are steady to tight. Class I and II demands are stable, but Class III intakes are strong due to increased cheese production. Ice cream makers continue to ramp up their production schedules. There is a good equilibrium between current milk demands and sales. Nonetheless, spot sales are limited.
Arizona milk production is stable to slightly down. Component levels are dropping. The hot and dry weather conditions are uncomfortable for dairy cows. The monsoon season started last week, although there hasn’t been any rain yet. All milk supplies are being balanced within the state. Bottled milk requests are flat.
In New Mexico, milk supplies are a bit up. Compared to last week, holdovers have increased, but remain manageable. Repair and maintenance work is ongoing at a few plants, but are not much impacting milk processing schedules. Class I and II sales decreased, but Class III demands are higher. Milk production is at seasonal levels.
Pacific Northwest milk production is steady to lower. Industry contacts suggest over base programs and lower mailbox milk prices from earlier this spring have kept milk output in check. Most manufacturers are running near full capacity. Ice cream production is very active and keeping cream supplies tight. In some cases, buying spot milk loads is the least expensive way to purchase milk fat.
Milk production in the mountain states of Idaho, Utah and Colorado is leveling off near the seasonal apex of output. Manufacturers are running beyond designed production capacities. But even still, there is some excess milk available.
Industry contacts report some spot milk loads priced at $3 or $4 under Class IV. Condensed skim availability hasn’t changed from a week ago. Some processors are shipping a few loads to other plants to help meet urgent needs.
In the West, cream supplies are balanced to tight. Ice cream production continues to absorb a big chunk of the cream in the region.
Since cream demand is strong, some butter makers have opted to sell their cream.