Fluid Milk and Cream — Western U.S.
In California, milk outputs and demands are well balanced. Contacts report that milk supplies have been tighter in the past two weeks. Loads are just enough to satisfy immediate needs. Milk processing is going on an active tone. Several plants are not being run at full capacities. Bottled milk orders are unchanged from a week ago.
In Arizona, hotter weather conditions continue to be an impediment for the well-being of dairy cows. Milk volumes produced have remained low. Processors report having enough time to work on repair and maintenance projects. All milk supplies are being mainly processed within the state. Class I and II demands are stable.
New Mexico milk production has been stable. Class I orders vary depending on the processors. Milk movements to locations impacted by the hurricane have been less than usual, but it is expected that demands will go back to normal next week. Class II demands are slightly down, whereas Class III processing is more active. Milk supplies are enough to meet the needs of the market.
Milk production in the Pacific Northwest is strong. Farmers have maintained cow comfort in spite of some warmer weather. With some processors easing back schedules over the upcoming Labor Day weekend, milk handlers are expecting that they will need to contend with some extra loads of milk and cream. Cheese plants are running at or near full capacity and should be able to absorb much of the extra milk. School milk bottling is subdued with some schools starting in a hybrid or virtual setting.
In the mountain states of Idaho, Utah and Colorado, milk production remains strong and steady. Manufacturers are running full schedules at facilities to keep up with milk supplies. Processors do not expect any issues over the holiday weekend. A few loads of milk, looking for homes, are available in Idaho at $4 under Class IV. Western condensed skim is being processed without any issue. Many loads are moving through contracts. Spot trading is steady. The cream market is still strong, but not as much as in the past months.
Cream multiples for all Classes have increased this week. According to contacts, lower milk outputs in some parts of the West have impacted milk and cream supplies. However, cream sales are steady. Cream churning is ongoing. Ice cream makers are taking consistent loads.