MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 4, 2015 (REPORT 22)

Milk output in CALIFORNIA continues decreasing every week. The warmer 
weather and poor feed quality are negatively affecting cow 
productivity. Some dairy farmers are reporting higher operation costs 
due to water charges. The drought severity is extreme in California as 
reported in the latest issue of Weekly Weather and Crop Bulletin. 
Class 1 demand is mixed to stable.  ARIZONA milk production is lower, 
as weather is getting warmer and the humidity begins to increase. 
Class I sales are lower this week.  Milk volumes in NEW MEXICO are 
slightly lower this week, according to milk haulers. Class I sales are 
down from last week. Class II sales are up since condensed skim and 
cream sales are shifting up as the warm climate advances.  Bottling 
orders are still being cut as more school terms end this week.  Cream 
demand is steady to higher. Cream is plentiful in the Southwest and 
sales are active to ice cream/frozen desserts manufacturers and butter 
churners. Multiples are ranging from 1.20 to 1.27. At the CME Group, 
Grade AA butter closed Wednesday at $1.9375, up $.0675 compared a week 
ago.  PACIFIC NORTHWEST milk production has leveled off but there is 
still plentiful milk.  The end of school terms have reduced milk 
bottling, making more available for manufacturing. Some manufacturers 
report strong consumer demand for ice cream.  First crop hay 
production is a little ahead of schedule in most parts of the region.  
IDAHO and UTAH milk production is strong.  With ample supplies of 
milk, many manufacturers report they are running at capacity.  Recent 
rains has helped replenish reservoirs.  Hay and forage harvest is 
proceeding.  According to the Weekly Weather and Crop Bulletin (NASS) 
for the week ending May 31, pasture and range conditions were rated 
fair to excellent in 81% of Oregon, 80% of Washington, 93% of Idaho 
and 95% of Utah.


1100CT Angel.Teran@ams.usda.gov 608-557-7011
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