MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI October 6, 2016 (REPORT 40) Farm milk intakes are trending higher in California. Daytime temperatures continue getting cooler in the Central Valley, aiding dairy herds' comfort. Milk components are still improving. Schools are requesting bottled milk as part of their meal programs. Class 1 sales to many retail outlets and restaurants are even this week. Moderate to heavy manufacturing milk volumes continue clearing into Class 4b as western cheese production continues to be strong. The September 4a price (butter/powder) in California is $13.58, down 41 cents from the previous month and $1.82 lower from a year ago. This compares to the Federal Order Class IV price of $14.25 for September. The September 4b price (cheese) is $15.24, down $1.10 from the previous month, but 30 cents above a year ago. This compares to the Federal Order Class III price for September at $16.39. Milk production is higher in Arizona. The cooler temperatures are reducing the stress on cows. Requests from grocery stores and food service for bottled milk are steady to higher. Orders from educational institutions are lower as most schools will be off for the fall break during next week. Demand for ice cream is waning, but is improving for sour cream. In New Mexico, the favorable weather conditions are raising the milk yield at the farm level. Class I sales to restaurants and many retail channels are up this week. However, orders from schools are down as the fall break starts by the end of the current week. Manufacturing milk volumes moving into cheese processing plants are mixed this week. According to the DMN National Retail Report-Dairy for the week of September 30 to October 6, the national weighted average advertised price for one gallon of milk is $3.48. The weighted average regional price in the Northwest is $3.74. Pacific Northwest dairy contacts say they are seeing a slight increase in milk production. As manufacturers ramp up to meet holiday demand for dairy products, milk intakes are in good balance with processing needs. Bottling demands are steady. Pasture and rangeland conditions are good or excellent in 45% of Washington and 19% of Oregon. Milk production in the mountain states of Colorado, Utah and Idaho has backed off just slightly, but some industry contacts note milk intakes are up, predominantly due to increases in the milking herd. Most manufacturers are not having any trouble getting the milk needed for processing. Temperatures are providing good cow comfort and there has been some snow at higher elevations. Pasture and rangeland conditions are good or excellent in 60% of Colorado, 40% of Idaho, and 42% of Utah. In the West region, moderate to heavy condensed skim volumes continue clearing into NDM and SMP manufacturing. However, a few plants are receiving lower volumes as some dryers are off due to routine maintenance projects. Condensed skim demand for ice cream production continues waning. There is enough cream for processing in the West region. Demands from cream cheese makers are active as well from sour cream processors. Moderate to heavy cream volumes continue clearing into butter manufacturing. Interest from ice cream producers is weakening. This week, multiples for all classes are steady to lower, ranging from 1.08 to 1.20. 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