MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 40 - Released on October 01, 2020

     In California, milk outputs are steady to up compared to the prior week. Class I sales
     remain steady. Class II sales have declined. Milk supplies are available to satisfy buyers'
     needs. Processing plants are being run a bit below full capacity. The market tone is steady.
     Arizona milk outputs are within seasonal norms. Temperatures are becoming cooler in the
     night and are helping with cows' comfort. Milk supplies and sales are in good equilibrium.
     Demands are stable for Class I, but decreased a bit for Class II. Handlers report not seeing
     many changes in their customers' intakes. Not much milk is coming into the state for
     processing. Milk holdovers are higher in New Mexico because a few large dairy processing
     plants are working on annual maintenance projects and couldn't take as many loads of milk as
     they usually do. As the result, balancing needs were up. Manufacturing facilities are being
     run at full capacities. Milk production has increased. The nicer weather conditions in
     recent days have allowed dairy cows to be more at ease. Class I sales have dropped, whereas
     Class II and III demands have increased. Pacific Northwest milk production continues at a
     steady pace. Manufacturers report milk and cream supplies are adequate for most processing
     needs without any surprises. Milk handlers are sorting out new patterns for bottling demand.
     With schools operating under a variety of in person, virtual and hybrid models, it has been
     challenging to find the right balance between gallon and half gallon jugs and single serving
     containers. Strong and steady describes milk production in the mountain states of Idaho,
     Utah, and Colorado. Warm days and cool nights are setting up almost perfect cow comfort
     weather. While fires are still a concern along the West Coast, air quality in the mountain
     states has improved from several weeks ago. Milk volumes are plentiful, and manufacturers
     are running at capacity. Some discounted loads of milk are moving around the region looking
     for homes. Discount levels are the typical $4 under Class IV. There are no reports of
     discarded milk loads. In the West, demands for condensed skim are high, especially requests
     going to ice cream production. Some processors report receiving more inquiries for spot
     loads. Cream demands in the West region are declining. Most ice cream manufacturers are
     slowing down their production schedules. This is leading to more cream churning. Cream
     multiples for all Classes are slightly higher at the top of the range.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2600


     Information for the period September 28 -  October 2, 2020, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: florence.konegonzalez@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov