MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 9, 2015 (REPORT 19) 

In California, milk production is steady to slightly higher. Dairy 
operators indicate the peak of the flush seems to be arriving ahead of 
the usual time period, mirroring the arrival of early in the season 
90+ degree daytime temperatures. Bottler demand is steady as many 
school districts have cycled into spring break, while others have 
students returning to classrooms. Milk production in Arizona is higher 
compared to last week, approaching the peak of spring flush. 
Processors indicate intakes are within plant capacities, with some 
waiting times extending occasionally. Sales into fluid accounts 
returned to pre-spring break volumes. Stick/cup/cone and novelty 
frozen dessert manufacturers have seasonally increased condensed 
skim/cream orders. New Mexico milk production took another step up 
compared to one week ago. Processors are also handling some out of 
state loads, as the need arises. Bottler demand is higher as some 
stores carry milk features. Class II usage declined as ice cream and 
frozen dessert manufacturers reassess current holdings for this time 
of year. California cream demand is active, with buyers vying for spot 
loads as they become available. In-state butter manufacturers are 
actively taking in loads to rebuild print supplies post-holiday. 
Butter manufacturers in other Western states are sending cream loads 
to the f.o.b. spot market to keep butter holdings in check. Cream 
sellers report trucks/drivers are becoming scarce as the juice and 
vegetable oil transportation season kicks in. Ice cream, frozen 
dessert, and aerated cream producers are also in higher volumes, via 
seasonal contracts and the spot market, as production schedules ramp 
up to meet summer demand.  Cream multiples are unchanged to higher, 
1.18 to 1.28. At the CME Group, Grade AA butter closed Wednesday at 
$1.7500, up $.0100 compared to a week earlier.  Washington milk 
production has been gradually increasing over recent weeks.  
Processors view this as not a historically normal season, with 
defined sharp increases.  Milk production has been steadily 
increasing at a gradual pace and that is expected to continue in 
coming weeks with no defined sharp spikes upward.  Production 
this week is steady.  Western Washington has plenty of water for 
dairying.  Eastern Washington is dryer but not abnormally so.  
Oregon is seeing increased milk production volumes.  Milk 
volumes are being handled in the course of business. Utah soil 
moisture is dryer than desired while Idaho is generally 
adequate.  This week, Utah has been mostly cool with some 
precipitation.  Most pasture and range conditions are 
characterized as fair to good.  Milk production is steady to 
increasing.  Idaho milk production is up seasonally.


1100CT Eric.Graf.usda.gov 608.557-7005
Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home