MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI October 1, 2015 (REPORT 39) California milk production is unchanged. Temperatures in the Central Valley remain at comfortable levels for the milking cows. Some dairy operators note a slight uptick in the butterfat component level of the milk. Bottled milk demand from schools, grocery stores, and food service is steady. Condensed skim demand from NDM processors is unchanged to higher. According to California Department of Food and Agriculture, August 2015 pool receipts of milk in California total 3.21 billion pounds, 3.8% lower compared to August last year. Year-to-date through August 2015 receipts are 4.1% lower from the comparable months in 2014. The August Value at Test price is $15.40, $.45 higher than July 2015 but $7.12 lower than August 2014. The percentage of receipts used in Class 1 products is 14.08%. The August quota price is $16.33 and the over quota price is $14.63. These prices are $.31 higher than July 2015 but $7.01 lower than a year ago. Milk volumes in Arizona are steady to lower. Higher temperatures above 105 degrees are taking a toll on the milk yield. Class I sales are steady at customary levels. Class II demand from ice cream and frozen dessert manufacturers is lower. Condensed skim milk demand from NDM plant operators is higher. Milk output is higher in New Mexico. Lower humidity conditions are contributing to wane the stress of the dairy herd. Some local balancing plants are doing operational maintenance projects throughout the week. Thus, operators from those facilities are requesting less manufacturing milk volumes. Processing plants from nearby states are helping to clear up milk volumes from New Mexico. Sales of Class I and Class II products are slightly lower. According to the DMN National Retail Report-Dairy for the week of September 25 - October 1, the national weighted average advertised price for one gallon of milk is $2.54 and $2.46 in the Southwest and $2.49 in the Northwest. Pacific Northwest milk production is a little lower and is following typical seasonal patterns. Recent warm daytime temperatures and cool nights have aided in cow comfort. Bottling demand is steady, but industry contacts note demand for whole fat milk is higher and in line with current national trends. Milk production in Idaho and Utah is following a seasonal declining pattern. The mild daytime temperatures and cool nights have helped milk intakes recover a little from recent high temperatures. Manufacturers report milk supplies are adequate for their processing needs. The availability of cream supplies is steady to improving across the West. The demand for cream from ice cream makers is seasonally waning. However, the cream demand for churning is strong as Q4 holidays approach. Industry participants note a higher interest for cream from sour cream and cream cheese manufacturers. Sales of spot loads of cream are active in the West. Cream multiples for all classes are steady to lower, ranging from 1.13 to 1.25. The Grade AA butter price at the CME Group on Wednesday closed at $2.5100, down 51.5 cents from a week ago. 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