Fluid milk and cream review — West

Although farm milk seems to be currently more available in California, prices in the spot market remain slightly higher.

(USDA Market News)

Oct. 12

This week, according to industry contacts, the weather in California is appropriate for good cow milking. As the result, farm milk production is seasonally higher. Fluid milk sales into Class 1 are steady compared to last week. Some processors are not running at full capacity and they believe that they are at the lowest supply levels for the remainder of this year.

Although farm milk seems to be currently more available in California, prices in the spot market remain slightly higher. In Arizona, cooler weather conditions are contributing to higher milk yield. There is sufficient milk to meet all processing needs.

Milk going into schools’ pipelines is steady.

Contacts report that the current prices for feed inputs are lower. In Arizona, topsoil and subsoil moistures are respectively 82 and 81 percent adequate to surplus. Alfalfa hay is 83 percent good to excellent.

Overall farm milk sales in New Mexico are increasing this week. Class III demand has been moving up for the past three weeks. Class I interest also is up, but Class II demand remains stable compared to last week. Farm milk production is steady to lower, but remains in line with seasonal output levels for this time of the year.

Overall, the market is balanced. The fifth and sixth cutting of alfalfa hay are respectively 79 and 41 percent completed. Topsoil and subsoil moistures are individually 78 and 81 percent adequate to surplus.

Pacific Northwest milk production for the year is off a little due to the hot, dry summer the region experienced. Now that cooler temperatures and a little rain have come to the region, dairy contacts expect milk output to recover somewhat.

That said, current milk production is seasonally in balance. Manufacturers report plenty of milk for most processing needs.

In the mountain states of Idaho, Colorado and Utah, milk supplies remain heavy. Cow numbers are higher than they were a year ago and favorable weather has maintained a strong milk flow. Many manufacturers are running full production schedules.

Any disruption within one plant creates a ripple, pushing milk out into neighboring states. The western condensed skim market is steady. Production and supplies are stable and in line with current demand.

Cream intakes are starting to pick up in many western states. Cream cheese makers have seasonally increased their orders for the coming holidays. Contacts suggest that some ice cream processors are also taking in more cream.

Cream multiples for all usages this week, are steady at 1.06-1.28.

According to the DMN National Retail Report-Dairy for the week of Oct. 6-12, the national weighted average advertised price for one gallon of milk is $2.97, up $0.31 from last week, and $0.59 higher from a year ago. The weighted average regional price in the Southwest is $2.45, with a price range of $1.89-$2.59.

The weighted average regional price in the Northwest is $1.99, with no reported price range. According to the NASS Dairy Products report, hard ice cream production in the West region for August 2017 is 16.7 million gallons, 3.0 percent higher than a month ago, but 1.2 percent below the previous year.