MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI September 10, 2015 (REPORT 36)

Milk volumes in California are lower. A heat spell with triple 
digit temperatures is increasing the stress of cows. Some dairy 
operators are expecting some rains from Hurricane Linda. 
Manufacturing milk supplies are adequate for post-holiday 
orders. Fewer milk shipments for processing are moving out of 
the state to find processing room. Class 1 demand is steady as 
the school pipelines are at comfortable levels. Class 2 demand 
is steady to lower. Arizona milk production is mixed. In some 
areas, lower temperatures are improving the comfort of the dairy 
herd. In other zones, wet conditions from current rainfalls are 
adversely affecting the production of the dairy herd. However, 
balancing plants are receiving sufficient milk volumes for 
processing. Class I demand from retailers and schools is higher. 
Some additional volumes of condensed skim supplies are moving 
into NDM processing plants. New Mexico milk output is slightly 
higher. Cooler temperatures ranging from 85 to 90 are aiding cow 
comfort. In addition, fair/good quality feed is helping milk 
yield. Manufacturing milk shipments clearing of state are 
slightly higher as some maintenance projects are been completed. 
Class I sales are steady to higher. Class II sales are steady at 
customary levels. According to the DMN National Retail Report-
Dairy for the week of September 4 - 10, the weighted average 
advertised price for one gallon of milk is $2.98 in the 
Southwest, $3.29 in the Northwest and $2.49 on a national basis. 
Pacific Northwest milk production continues to follow seasonal 
declines. Bottling demand has been pulling some extra milk from 
manufacturing, but the impact to date has been minimal. Some 
bottlers have observed an increased demand for whole milk. 
Supplies of milk for processing are adequate. Utah and Idaho 
milk production is steady. Warm daytime temperatures followed by 
cool nights have aided cow comfort. Processors report adequate 
milk intakes and only a minimal draw of milk into bottling. 
Western cream supplies are mostly steady. The cream demand from 
churn operators and cream cheese makers continues actively. Ice 
cream demand continues trending down. A rise of bulk butter 
prices at the CME Group is reinforcing the interest of cream 
from buyers, as they expect an increase in prices in the near 
future. West cream multiples are steady, ranging from 1.25 to 
1.40. At the CME Group, Grade AA butter closed Wednesday at 
$2.4725, increasing 5.25 cents from last Wednesday.


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: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home