FLUID MILK AND CREAM
REVIEW – WEST
(USDA Market News)
Although there are some variations, milk output in California is mainly up. Sales are in good equilibrium with the supplies at hand, and no issues have been reported with milk handling. Class 1 pulls are at the same levels as that of last week.
Solids percentages in the milk are trending somewhat up. Handlers are efficiently managing trucks/drivers by arranging ahead milk pick up schedules at the farms.
In Arizona, milk production is steady to growing with favorable weather conditions impacting total milk volumes produced per cow. Milk marketers continue to efficiently manage milk loads available to them.
The impact of Class I sales is unchanged from a week ago. Class II intakes are increasing for holiday food manufacturing, especially for eggnog. According to the latest statement from contacts, shipments of cream out of the state have declined as cream is being more used internally.
In New Mexico, milk output has slightly pick up on a week to week basis. Milk is moving to manufacturing facilities as expected although a few local plants are down for maintenance. Class I pulls have augmented, whereas Class II demand dropped. Class III intakes are steady to slightly down. In general, there are enough offers of milk for the upcoming holiday production needs.
Requests for milk from the Southeast region remain strong. Nevertheless, southeastern buyers are taking care of milk deliveries to their plants. Hauling costs are still high, and drivers/trucks accessibility remain an issue.
Pacific Northwest milk production is generally steady; however, some industry contacts report intakes are up slightly. Seasonal weather patterns are in play and are supportive of cow comfort. Manufacturers say they have plenty of milk and are running near full capacity. Bottling demand is steady.
Milk production is following typical seasonal trends in the mountain states of Idaho, Utah and Colorado. While some industry contacts report a seasonal decline in production, others suggest intakes have grown, partly due to farmers adding more cows in parts of the region.
Manufacturers say there is ample milk for processing. Milk handlers are discounting a few loads and sending the milk into neighboring states to find a home for the extra milk. The condensed skim market tenor is even. Supplies are enough to satisfy all orders from customers. Market partakers expect the accessibility of condensed skim to increase in the coming months as more milk is expected to be produced in the West region.
There is a heavier pull on cream to fill spot and contractual needs this week. Some contacts stated that they are seeing more demand for cream this week compared to the summer. Although supplies of cream are tight nationally, loads seem to be a bit more available in the West compared to the other regions. Cream is being used more in the production of Class II products for the holidays. Ice cream processors are also demanding additional loads in some areas. In some instances, a few butter makers couldn’t find the volumes of cream they needed for daily butter plant operations. Multiples are 1.10-1.31 for all usages and basis points.
National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/26/2018 to 11/01/2018
Half Gallon, All Fat Tests Weighted Average Price National
Milk pooled on the Arizona Order 131 totaled 353.9 million pounds in September 2018. Class I utilization accounted for about 28.3 percent of producer milk. The uniform price was $15.85, up $0.53 from last month, but $1.04 below one year ago.
Milk pooled on the Pacific Northwest Order 124 totaled 610.7 million pounds in September 2018. Class I utilization accounted for 24.2 percent of producer milk. The uniform price was $15.44, up $0.37 from last month, but $1.15 below one year ago.