MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI October 8, 2015 (REPORT 40)

Milk output is lower in California. A raise in humidity in the 
Central Valley is adversely affecting the milk yield. Demand for 
Class 1 is steady to lower. The interest of NDM processors for 
condensed skim is increasing. Harvesting of alfalfa hay and corn 
for silage is limited due to severe shortage of water. Thus, 
some dairy operators are buying these feeding crops from out of 
the State. The September 4a price (butter/powder) in California 
is $15.40, up $2.32 from August 2015, but $7.32 lower than last 
year. This compares to the Federal Order Class IV price of 
$15.08 for September. The September 4b price (cheese) is $14.94, 
$0.80 lower than last month, and $7.45 lower than last year. 
This compares to the Federal Order Class III price for September 
at $15.82. A combination of heavy rains and high humidity is 
decreasing the milk production in Arizona. Bottled milk sales 
are lower as some public schools are closed (fall break) during 
this week. Sales of spot condensed skim loads to Class IV 
products manufacturers are higher. Harvesting of good quality 
alfalfa hay and cottonseed is active throughout the state. Milk 
output is steady to lower in New Mexico. Wet conditions 
associated with scattered thunderstorms are taking a toll on the 
milking cows' comfort. Class I sales to the retail and food 
service sectors are steady to higher. Condensed skim sales to 
NDM processors are improving. The state is between the fifth and 
sixth cutting of fair to good quality alfalfa hay. According to 
the DMN National Retail Report-Dairy for the week of October 2 - 
8, the national weighted average advertised price for one gallon 
of milk is $2.74, $2.21 in the Southwest and $2.50 in the 
Northwest. Pacific Northwest milk production is steady to lower. 
Processors report milk supplies are adequate to meet most 
processing needs. The lighter milk intakes make it possible for 
manufacturers to schedule maintenance. Utah and Idaho milk 
production is following a typical seasonal decline. 
Manufacturers report milk is reasonably available for processing 
needs. Industry contacts say silage is good and plentiful, but 
hay quality is a little lower as fall begins. Dairy industry 
participants are talking about what impact El Ni¤o may have this 
winter and whether the system will provide significant snows or 
lack of snows across the Rocky Mountains. Western cream demand 
from butter and sour cream manufacturers is seasonally 
increasing. Some industry participants note higher sales of spot 
cream loads within the region. Cream supplies are steady to 
lower. Some butter producers expect an increase of cream 
availability during Q4 holiday season. Western cream multiples 
for all classes are higher, ranging from 1.14 to 1.30. The Grade 
AA butter price at the CME Group on Wednesday closed at $2.3700, 
down 14.0 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