MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 18, 2015 (REPORT 24)

Milk output in California is decreasing every week. A combination of 
extended hot days and limited recovery during the nighttime is 
negatively affecting dairy cow comfort (heat stress) and productivity. 
The conclusion of school terms decreased bottling demand but increased 
milk volumes available for processing. Class 1 sales are lower while 
Class 2 sales are steady. Milk intakes in Arizona are trending down as 
temperatures continue getting warmer. During the current week, the 
National Weather Service at Phoenix issued an excessive heat warning 
for southwest Arizona along with portions of southeast California. The 
highest temperatures are ranging from 110 to 116 degrees. This 
situation is reducing the milk yield. Processors continue receiving 
milk loads helping clear up milk excess from neighbor states. The milk 
output in New Mexico continues to step lower after reaching its 
production peak. The sales into Class I and Class II are slightly 
higher than last week. A good volume of milk is coming from out of 
state for processing. Cream demand and supply are balanced. The 
interest from ice cream, frozen dessert and butter manufacturers 
remains steady. Cream multiples moved higher at the bottom of the 
range and lower at the top, ranging from 1.19 to 1.24. Grade AA butter 
closed Wednesday at $1.8950, up $0.0350 compared with the previous 
week. Pacific Northwest milk production has slowed slightly, but end 
of school terms have resulted in lower bottling demand, increasing the 
amount of milk available for manufacturing. Processors report plenty 
of milk available and are running at full production. Cream is 
generally available and some processors continue to sell a few loads 
of cream.  The seasonal increase in ice cream production is using some 
of this cream. Idaho and Utah milk production remains strong and milk 
is readily available for processors.  Many manufacturers report they 
are running at capacity. There have been indications of several 
heavily discounted loads moving as low as $5 under Class. Spring 
weather has been generally favorable for hay and grains.


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