MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI May 7, 2015 (REPORT 18) 

Milk processors in California report overall farm milk intakes are 
declining from week to week. Some processors who have been regularly 
buying weekly spot milk loads indicate spot offers dried up this week. 
Sales into bottling are steady while ice cream and frozen dessert 
manufacturers took slightly higher volumes to match increases on some 
production lines.  The April 4a price (butter/powder) in CALIFORNIA is 
$13.36, down $.06 from March 2015, and $9.95 lower than last year. 
This compares to the Federal Order Class IV price of $13.51 for April. 
The April 4b price (cheese) is $14.22, $.25 more than last month, but 
$7.51 lower than last year. This compares to the Federal Order Class 
III price for April at $15.81.  Milk production stepped up in New 
Mexico despite higher daytime temperatures at the lower elevations. 
Milk volumes coming into New Mexico for processing are holding steady. 
Handlers are keeping butter/powder plants filled to near capacity, and 
a few loads are moving out-of-state to find processing room. Bottler 
demand increased from one week ago as some consumer outlets feature 
milk in various packaging sizes. Sales into ice cream, frozen dessert, 
and specialty milk drinks are lower. Contacts reported tornados 
touched down in eastern New Mexico earlier in the week, but impacts to 
dairy operations were minimal. Cream availability tightened in the 
Western region as ice cream manufacturers claimed additional volumes 
as either seasonal contract loads or f.o.b. spot loads. A few butter 
manufacturers who were looking for additional cream loads to maintain 
butter production were disappointed in the lighter volumes of cream 
available. Transportation costs limited interest in bringing loads in 
from farther afield. Multiples are steady to higher, ranging from 1.24 
to 1.29. At the CME Group, Grade AA butter closed Wednesday at 
$1.8900, up $.0400 compared to a week earlier.  PACIFIC NORTHWEST milk 
production is at or near peak and market participants report a lot of 
milk available for manufacturing. Processors note the early spring has 
brought on the flush, but it may not be as robust as last year. Some 
manufacturers have also begun selling cream for ice cream production.  
IDAHO and UTAH milk is readily available.  Some dairy processors 
report the availability of a few discounted spot loads of milk. Some 
processors report cream utilization is at capacity within their 
facilities and they have begun selling excess cream.


1100CT Eric.Graf.usda.gov 608.557-7005
Janet.Linder@ams.usda.gov 608.557.7003
Mike.Bandli@ams.usda.gov 608.557.7010
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