MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 20 - Released on May 16, 2019

     California milk yield is steady this week. Milk supplies are in good balance with demand.
     Manufacturers report that plants are running near capacities, and milk volumes are
     manageable within the state. Bottled milk demand is steady to down. In Arizona, milk volumes
     produced are falling to the point where processors are taking a few loads from Midwestern
     plants to fully meet their needs. There remains extra room available to take on additional
     milk, so plant managers plan to bring in more out-of-state milk next week. Class II
     processing is active, though not done every day. Class III sales are unchanged from the
     previous week, but Class I demand is declining as educational institutions prepare to close
     next week. In New Mexico, Class I and III milk requests have augmented, but there was a
     slight cutback in Class II usage. Soon, schools will be off, and more Class I milk will be
     going to balancing facilities. Milk production is generally down, but purchasers can get
     what they need. With the spring flush close to ending, milk outputs are diminishing.
     However, handlers say that unplanned maintenance and repairs caused some plants to not take
     all their scheduled volumes of milk, resulting in higher milk holdovers. Milk production in
     the Pacific Northwest is steady to higher. However, industry contacts suggest they have not
     seen the typical incipient signals of spring flush. Processors have plentiful milk supplies
     to keep most facilities running at or near full capacity, but not so much milk as to swamp
     the pipeline. Bottling demand is beginning to wane as schools start to close for summer
     breaks. Milk handlers expect this to push more milk into manufactured dairy product
     channels. So far, the added milk has not stressed processors much. Milk intakes appear to be
     well balanced. Milk production in the mountain states of Idaho, Utah and Colorado is strong.
     Manufacturers are seeing ample amounts of milk. A few processing facilities have run into
     glitches, causing some orphaned loads to go looking for homes at a discount. Industry
     contacts say these loads are getting readily absorbed and the system seems to rebalance
     quickly. Industry contacts are beginning to look ahead to the upcoming Memorial Day weekend.
     A few processing facilities have scheduled plant maintenance, and, with some schools
     finishing the school year, milk handlers anticipate having more milk to contend with. The
     condensed skim inventories are steady and accessible to all end users. Ice cream makers are
     taking on a few loads. Although buyers are able to get the loads of cream they need, they
     stated that there is less cream available than usual at this time of the year. Therefore,
     the expectation is that cream will be tighter in the coming months. Ice cream and cheese
     makers continue to pull good volumes of cream for their daily processing activities.
     Surprisingly, cream multiples for all Classes declined by one cent at the bottom of the
     range this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0900 - 1.2200


     Information for the period May 13 - 17, 2019, issued weekly

     Secondary Sourced Information:

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 5/10/19 to 5/16/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             $4.02            $3.87          $3.94
      Conventional                        $1.89            $1.16          $2.43

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           $3.65            $2.50          $3.99
      Southwest                           $4.09            $2.99          $4.99

     Gallon, All Fat Tests                    Weighted Average Price

     National                          This Period       Last Week      Last Year
      Organic                             $6.29            $6.99          $6.47
      Conventional                        $2.56            $2.51          $2.48

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                           $2.75            $2.50          $2.99
      Southwest                           $1.99            $1.99          $1.99
     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/