MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 6 - Released on February 06, 2020

     Farm milk production with high protein/butterfat components levels, continues ramping up in
     California, Arizona, and New Mexico. Comfortable temperatures and enough availability of
     fair/good quality alfalfa hay have led dairy herds to perform higher milk yields. In this
     way, milk/cream intakes are more than adequate for most dairy manufacturing needs throughout
     the Southwest region. In order to balance the current oversupply of raw milk, several spot
     loads of milk are moving from state to state, within the region, looking for processing
     room. For example, bottlers are helping to clear copious amounts of milk, while butter
     makers continue churning actively, helping to reduce large supplies of cream within the
     region. Class I sales are reported as fair/good as some retailers are restocking shelves,
     while some schools are refilling their pipelines.
     Pacific Northwest milk production is above projections. Mild winter weather is providing
     favorable cow comfort. The strong milk output is keeping many manufacturing facilities are
     at or near capacity. There are only small windows of available time for planned maintenance
     or repairs. Bottling demand remains steady. Milk production in the mountain states of Idaho,
     Utah, and Colorado is heavy and growing. Some manufacturers report they have plenty of milk
     with their current contracted shipments and very little room for additional spot milk loads.
     The spot loads that they do accept are often priced as low as $6 under Class IV. Excess
     milk is getting pushed into surrounding regions. Industry contacts say the winter snowpack
     is in good shape and reservoirs had good carryover going into the winter. They expect no
     issues with availability of water for early season cropping. Western condensed skim supplies
     are readily available for Class II and NDM manufacturing.  In the West, the spot trading
     activity for cream is generally steady from a week ago. This week, cream price factors for
     all Classes remained unchanged.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.1800


     Information for the period February 3 - 7, 2020, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     ANGEL TERAN-RAMOS, 6084228593
     Email: angel.teran@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