MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI November 24, 2015 (REPORT 47)

Lower temperatures and humidity prevail in the Central Valley of 
California. Milk production is flat to higher in the state. However, milk 
output is below the previous year's levels. Requests for fluid milk from 
educational institutions are lower as some schools will close during the 
current week. Nevertheless, orders from groceries stores are up, mainly 
due to the high demand driven by the Thanksgiving holiday. According to 
California Department of Food and Agriculture, October 2015 pool receipts 
of milk in the state total 3.12 billion pounds. This is 6.1% lower 
compared to the same month a year ago. From January through October 2015, 
receipts are 4.3% lower from the comparable period in 2014. The Value at 
Test price is $16.07, 7 cents higher than previous month but $6.79 lower 
than October 2014. The percentage of receipts used in Class 1 products is 
15.24%. The October quota price is $16.60 and the over quota price is 
$14.90. These prices are 8 cents lower than September 2015 and $6.59 
below a year ago. Arizona milk output is seasonally increasing. Lower 
temperatures and humidity are helping to raise comfort of milking cows. 
Fluid milk volumes into Class I are mixed but are expected to be higher 
by the middle and end of the week. Condensed skim milk processing is 
mostly steady. Class II demand is increasing. New Mexico milk production 
is inching up. Favorable weather conditions are aiding on the milk yield. 
Sales into Class I and Class II are lower. However, some handlers 
anticipate an increase in these two accounts during the middle of the 
week. Some processing plants from nearby states are helping to clear up 
manufacturing milk volumes from New Mexico. Pacific Northwest milk 
production is steady to lower and following seasonal trends. 
Manufacturers are working to balance available milk over the 
Thanksgiving holiday weekend. Parts of the region received rain and 
snow the last few days. Cooler temperatures are expected throughout 
the remainder of the week. Utah and Idaho milk intakes are adequate 
for most processing needs. A few loads of milk are moving within the 
region to balance the short term needs of processors. Some dairymen 
report milk per cow being down slightly this year as compared to last 
year. High quality hay is a little less available. Corn silage stocks 
are in strong supply. The region is expecting a significant winter 
storm for the end of the week. Although the storm may disrupt some 
travel, area farmers hope the storm will add to the snowpack, 
providing the water reserves for next year's growing season. Western 
cream demand from eggnog and ice cream manufacturers is improving as the 
Christmas holiday approaches. Sales in the spot market are active. Cream 
supplies into manufacturing are more available as the farm level milk 
output is seasonally increasing. In addition, the butterfat component 
level in the milk is improving. As a result, multiples are steady to 
lower, ranging from 1.14 to 1.23. At the CME Group, Grade AA butter price 
on Tuesday closed at $2.9000, up 1.5 cents from last Tuesday. According 
to NASS, October milk production for the 23 surveyed states totals 16.0 
billion pounds, 0.1% higher than a year ago. October milk production 
changes from a year ago for selected Western states are as follows: 
Arizona -1.3%, California -5.5%, Colorado +3.3%, Idaho +1.2%, New Mexico 
-2.9%, Oregon -1.4%, Utah -1.6 and Washington -0.7%. Monthly milk 
production per cow for the 23 states is 7 pounds below October 2014. Milk 
cow numbers on farms in the 23 states totaled 8.63 million cows, 38,000 
head more than October 2014.

1430CT 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