California’s June PPD is -$7.91
July 14, 2020
The California Federal Milk Marketing Order reported this week that its June Producer Price Differential was -$7.91/cwt, the lowest PDD so far reported out by the Federal Order system for the month.
The Class III price at 3.5% butterfat was $21.04. Subtracting the -$7.91 PPD leaves a statistical uniform price at Los Angeles County of $13.13. The minimum Class I price for June was $13.52 and the minimum Class IV price for June was $12.90.
As in the other Federal Orders, there was Class III depooling in California in June, with just under 12 million pounds pooled on the order. The Class III utilization was 0.7 percent. But California isn’t pooling a lot of Class III normally. In May, it pooled a little over 54 million pounds, for a Class III utilization of 2.8 percent. Its highest Class III utilization came in January when it was 17.8 percent. All other months this year were less than 3 percent.
Most of the decline in California’s PPD came from the wide discrepancy in Class and commodity prices.