MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI November 12, 2015 (REPORT 45)
California milk production is steady to higher. Lower temperatures in 
the Central Valley are helping to ease the stress on dairy herds. 
Demand for Class 1 is mixed. Interest for condensed skim milk is 
ramping up, as the Q4 holidays are close. Therefore, manufacturing 
milk volumes moving into Class 2 are higher. Arizona milk output is 
steady to higher. Lower humidity conditions are enhancing the milk 
yield. However, milk production is below the previous year's levels. 
Some educational institutions were closed during the Veteran Day 
holiday. As a result, bottled milk orders are slightly lower. 
Condensed milk demand is improving, as Q4 holidays approach. Milk 
production in New Mexico is higher. The cooler weather with 
temperatures averaging 59-60 degrees is helping to raise cows 
comfort. Bottled milk sales are steady to lower. Sales to Class II 
are even. Milk volumes moving into Class III and IV are steady to 
higher. According to the DMN National Retail Report-Dairy for the 
week of November 6 - 12, the national weighted average advertised 
price for one gallon of milk is $2.22, $2.24 in the Southwest and 
$2.20 in the Northwest. Pacific Northwest milk intakes are steady and 
adequate for most processing needs. Manufacturers are short an 
occasional load or two of milk to run at full production. The lighter 
volumes have allowed more time for maintenance and special production 
runs. Utah and Idaho dairy manufacturers report plenty of milk to 
maintain near full production runs. Milk production is following 
typical seasonal patterns. Western cream demand from butter makers is 
strong. In addition, the interest from whipped cream, sour cream, and 
cream cheese makers is growing. According to some butter processors, 
cream supplies are mixed. Western cream multiples for all classes are 
mixed, ranging from 1.14 to 1.25. At the CME Group, Grade AA butter 
price on Wednesday closed at $2.8850. This is up one cent 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-
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