Fluid Milk and Cream — Western U.S.
In California, milk production is seasonally higher. Temperatures and humidity are declining steadily, helping with milking cows’ yield.
Class I demands by retailers and educational institutions are mostly stable. Milk supplies are in good balance with the needs of users.
In Arizona, temperatures are lower in the morning, keeping cows recharged and their milk production active. Compared to last month, milk output is higher. Handlers’ milk pools have been stable. Due to the fall break, Class I demand was down last week, but it is back to normal this week. Component levels have started to improve bit by bit.
Class II demand is steady to down as several plant managers have reduced ice cream processing. All fluid milk produced continues to be used within the state.
Throughout New Mexico state, favorable weather conditions are contributing to improved milk output. Despite some scheduled/unplanned maintenance projects, milk is being used efficiently. Bottled milk sales to grocery stores’ accounts are unchanged from a week ago. Schools’ intakes have recovered from last week’s drops.
Milk production in the Pacific Northwest is steady, and some industry contacts say components have eased back a little lately. Class I demand is in mid-season form, with school milk bottling stable. Manufacturers have plenty of milk to fill their processing needs.
Milk production in the mountain states of Idaho, Utah and Colorado remains strong. Cool nights and warm, genial days have maintained cow comfort and kept the milk flowing. Industry contacts say there is an abundance of milk, especially in Idaho, where some excess milk is getting pushed out into surrounding states or discounted to $4.75 below Class IV.
Not a lot is going on in the condensed skim market this week. Sales and prices are stable. Inventories are readily accessible for drying purposes.
In the West, there are more offers of cream. However, there were no price breaks reported. Some processors are working on 2020 Quarter 1 contracts. Cream sales are generally stable and below expectations. Multiples for all Classes are a bit up at the top of the range.
Advertised Prices at Major Retail Supermarkets: Oct. 17
Half Gallon, All Fat Tests Weighted Average Price