MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI November 5, 2015 (REPORT 44) Wet weather conditions were present at the beginning of the week in the San Joaquin Valley. As a result, farm level milk production is flat to slightly lower in California. In addition, some dairy operators indicate a marginal reduction in the number of milk cows in dairies. Despite this, manufacturing milk volumes are sufficient. Bottled milk orders are steady to lower, as some schools will be closed during the next week's Veterans Day holiday. Condensed skim milk sales are mixed. The October 4a price (butter/powder) in California is $15.72, up 32 cents from the previous month, but $5.79 lower than last year. This compares to the Federal Order Class IV price of $16.43 for October. The October 4b price (cheese) is $14.75, 19 cents lower than last month and $6.19 lower than last year. This compares to the Federal Order Class III price for October at $15.46. Arizona milk output is steady to higher. Lower temperatures are helping to improve the comfort of the dairy herd. Sales into Class I are steady to increasing. Condensed skim sales into Class II are unchanged to marginally lower. However, some processors expect an increase in production as demand for cultured and whipped products are seasonally ramping up. Milk production in New Mexico is mostly steady. An irregular weather pattern occurred throughout the beginning and middle of the week. However, the milk yield was only marginally affected. Milk sales moving into Class I are increasing. Condensed skim sales into Class II are slightly higher ahead of the holidays. The state is preparing for the last cutting of fair/good quality alfalfa hay. In addition, sorghum harvesting is active in some areas of the State. According to the DMN National Retail Report- Dairy for the week of October 30 - November 5, the national weighted average advertised price for one gallon of milk is $2.14 and $2.21 in the Southwest. Pacific Northwest milk intakes are steady and following typical seasonal trends. Recent heavy rains in parts of the region have not had a significant impact on milk production. Many producers hope the rain can help improve soil moisture levels. Milk intakes are adequate for most processing needs. A few manufacturers note having some additional time for set up of special processing runs in their facilities. Utah and Idaho dairy manufacturers report good milk supplies for processing needs. Industry contacts say there is enough milk to maintain full production runs. Parts of Utah and Idaho received rain and some snow this week. Some snowfall fell in higher elevations. Area farmers are hoping for a significant snowpack to provide water for next year's growing season. Cream spot sales are active throughout the West. Cream demand from butter processor is inching up, as the Thanksgiving holiday is close. In addition, some ice cream producers are pulling some cream to make specialty flavors for the Q4 holidays. Western cream supplies are tight. Thus, cream multiples for all classes are higher, ranging from 1.14 to 1.32. At the CME Group, Grade AA butter price on Wednesday closed at $2.8750. This is up 23.5 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