MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI November 19, 2015 (REPORT 46)

Farm level milk output is up in California. Requests for milk from 
bottlers are lower as some educational institutions will close next 
week. However, orders of milk and other seasonal fluid products from 
retailers and food service are inching up. As a result, the Class 1 
market has been irregular during the week. The December 2015 Class 1 
prices in California are $18.33 in the north and $18.60 in the south. 
The statewide average Class 1 price based on production is $18.34. 
That production average price is $0.65 higher than November 2015 but 
$5.40 lower than December 2014. Milk output is on the raise in 
Arizona. Favorable weather conditions are supporting the comfort of 
dairy cows. Milk sales into Class I are lower. Condensed skim sales 
into Class II are mostly steady. Milk pooled on the Arizona Order 131 
totaled 387.9 million pounds in October 2015. Class I utilization 
accounted for about 28.9% of producer milk. The uniform price was 
$16.80, unchanged from last month but $6.65 below one year ago. 
Winter storm Ajax was present in New Mexico at the beginning of the 
week. Nevertheless, this storm had marginally affected dairy herds. 
As a result, milk production is mostly flat in the state. Milk sales 
into Class I are lower. Condensed skim sales into Class II are 
steady. Manufacturing milk volumes moving into Class III and Class IV 
are up. According to the DMN National Retail Report-Dairy for the 
week of November 13 - 19, the national weighted average advertised 
price for one gallon of milk is $2.45, $2.37 in the Southwest and 
$2.49 in the Northwest. Pacific Northwest milk intakes are following 
typically seasonal trends. Some areas within the region received 
heavy rains this week. The storms did not disrupt milk procurement 
much aside from a few sporadic power outages. Bottling demand is 
steady. Manufacturers are adjusting runs and filling orders in 
advance of the upcoming Thanksgiving holiday. Utah and Idaho dairy 
manufacturers describe current milk availability as well balanced. 
There are not many reports of milk being transferred within the 
states, but a handful of loads have been pulled into the Southwest. 
Light rains and some snow in the mountains provided moisture to the 
region. Milk pooled on Pacific Northwest Order 124 totaled 736.8 
million pounds in October 2015. Class I utilization accounted for 
about 23.5% of producer milk. The uniform price was $16.28, $0.08 
below last month, and $6.55 below one year ago. Cream usage for cream 
cheese, sour cream, whipping cream, dips, eggnog and other popular 
holiday dairy products remains strong. Cream supplies vary all over 
the West. Some butter processors are opting to sell the cream instead 
of churning, as multiples are steady to higher. Western cream 
multiples for all classes are ranging from 1.14 to 1.27. At the CME 
Group, Grade AA butter price on Wednesday closed at $2.8850, 
unchanged 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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