MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI May 19, 2016 (REPORT 20) In California, farm level milk output has plateaued after a four-week downward trend. The current dry weather is promoting cows' comfort, according to some industry participants. Sales into Class 1 are steady to lower. Many K-12 school districts are readjusting orders as the end of semester approaches. However, requests from grocery stores and restaurants are slightly higher this week. Condensed skim sales into Class 2 and Class 4a (butter/powder) are active, as prices remain relatively low. In Arizona, milk output continues trending lower. Higher temperatures, averaging 105 degrees, are increasing heat stress on dairy herds. Class I sales are lower as most educational institutions concluded courses recently. Condensed skim sales into Class II are steady to higher as demands for ice cream and frozen desserts are inching up. Cottonseed planting is almost done in Arizona. Milk pooled on the Arizona Order 131 totaled 445.2 million pounds in April 2016. Class I utilization accounted for about 23.3% of producer milk. The uniform price was $13.82, $0.02 below last month and $1.43 below one year ago. In New Mexico, farm milk production is steady on the top of the seasonal peak. Bottled milk requests from educational institutions are trending lower as most public K-12 schools will finish courses during next week. Requests from retailers and food services remain steady. Manufacturing milk volumes moving to cheese processing plants are steady. Condensed skim loads moving into NDM manufacturing are slightly lower as some dryers are performing maintenance/repair works. New Mexico is between the first and second cutting of fair/good quality alfalfa hay. According to the DMN National Retail Report-Dairy for the week of May 13-19, the national weighted average advertised price for one gallon of milk is $2.27, down 2 cents from last week and 45 cents from a year ago. The weighted average regional prices in the Southwest and Northwest are $1.95, and $1.79, respectively. Warmer temperatures in the Pacific Northwest are aiding cow comfort and pushing milk production upward along seasonal trends. Bottling demand is near normal for this time of year, and manufacturers are preparing for more milk to be available for processing when school sessions end. Industry contacts report milk intakes are in balance with bottling and processing needs. Much of the winter snowpack melted earlier than usual, however above average precipitation this last winter has reservoirs at near normal levels. Adequate moisture and warm temperatures are prompting farmers to start harvesting forages. Milk pooled on Pacific Northwest Order 124 totaled 580.7 million pounds in April 2016. Class I utilization accounted for about 26.3% of producer milk. The uniform price was $13.67, unchanged from last month and $1.19 below one year ago. Utah and Idaho contacts say there is no shortage of milk. Ample milk intakes are pushing processing to near full schedules. Industry contacts report some milk moving between Idaho and Utah. Extra loads of milk are available at the Class III price or slightly below, and there is a market for all milk produced. Manufacturers are anticipating a bump in available milk as schools close for the summer break. Cream supplies are readily available for processing in some areas of the West. However, cream remains tight in other areas of the region. Moderate to heavy cream volumes continue clearing into butter churning. Demands for cream from ice cream and frozen dessert manufacturers are higher as the summer season approaches. This week, multiples for all classes are steady, ranging from 1.06 to 1.22. 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