MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 11, 2015 (REPORT 23)

Milk output in California continues declining. The remnants of 
Hurricane Blanca are generating rain showers and gains in soil 
moisture. Dairy farmers in the Central Valley expect some improvement 
in the quality of feed for upcoming harvests. The high quality alfalfa 
hay available is limited while fair to good quality alfalfa hay is 
more readily available. The Class 1 sales are down in California. The 
July 2015 Class 1 prices in California are $18.42 in the north and 
$18.70 in the south. The statewide average Class 1 price based on 
production is $18.44. That production average price is $0.96 higher 
than June 2015, but $6.70 lower compared with $25.14 reported in July 
2014.In Arizona, milk production is trending lower. Relative humidity 
continues increasing and temperatures are getting higher. Bottling 
orders have been cut because school terms ended, making more milk 
available for manufacturing. According to processors, milk output in 
New Mexico is lower this week. A majority of operators have finished 
the second cutting of alfalfa hay. A lot of hay is being stacked in 
western New Mexico. Dairy operators are importing good quality hay 
from Mexico. This is helping with forage availability, while limiting 
interest in higher priced alfalfa grown in state. Class I sales are 
up, while sales for Class II are slightly down from the previous week.
The cream market tone is balanced. There is good demand from ice cream 
and butter manufacturers in the market. Cream multiples for all 
Classes are ranging from 1.18 to 1.28.  At the CME group, Grade AA 
butter closed Wednesday at $1.8600 for a drop of $0.0775 compared with 
the same day from last week. Pacific Northwest milk production has 
leveled off or declined just slightly, but there is still plentiful 
milk. With the end of school terms, bottling demand has decreased. 
Many manufacturers are reporting full production schedules. However, a 
few processors have suggested they have some processing capacity 
available and could use a little more milk. Cream is being pulled into 
ice cream and yogurt production and some manufacturers are selling 
excess cream. Idaho and Utah milk production is strong. Many 
manufacturers report they are running at capacity. Recent rains have 
helped improve reported pasture and range conditions.

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