Fluid Milk and Cream — Western U.S.
California milk production is flat to down, but it is balanced with the needs of buyers.
Less milk is going to balancing plants' accounts as most of it is being used up by lower Classes of milk. With schools being back in session in many parts of the state, bottled milk intakes continue to increase.
In Arizona, milk production has declined this week. The weather has been very hot, putting stress on cows and on their ability to produce milk. Milk supplies are not enough to satisfy all processing obligations. Some milk is moving from Utah to Arizona.
Nevertheless, a few plants were still not running at capacities due to the lack of enough milk. Class I sales are steady whereas Class II demand has declined.
In New Mexico, milk yield is on the down side. Milk balancing volumes have declined sharply because supplies were insufficient for processing activities. Handlers had to use alternative ways to get additional milk for their customers. Class I requests are stable, but Class II and III demands improved. Milk holdovers are very low.
In the Pacific Northwest, milk supplies continue to be in check at most processing plants. Climatic conditions have been contributing to strong milk output. Bottled milk requests are unchanged from the previous week, but they are anticipated to pick up in the coming weeks when schools reopen.
Milk production in the mountain states of Idaho, Utah and Colorado is still solid. While most of the milk produced in Idaho is being processed in state, in Utah, some milk is moving to Arizona to help meet processing requirements. The summer climate has not much affected milk output in the mountain states. Class I intakes are steady to a bit up. Western condensed skim inventories are steady to down.
Some loads are moving from Texas to Arizona to fill the needs of customers. Cream demand has stepped down somewhat in the West, but cream multiples for all Classes have increased by .0200 at the top of the range.
National Retail Report Dairy ± Fluid Milk Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 8/16/19 to 8/22/2019. Half Gallon, All Fat Tests Weighted Average Price