MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI June 15, 2017 (REPORT 24) FLUID MILK AND CREAM - WEST Farm milk production is trending lower in California. Hot weather conditions are prevailing in many areas and are negatively affecting milk output. Some contacts report limited milk availability for spot sales. Fluid milk demand is generally steady. According to CDFA, July 2017 Class 1 prices in California are $18.45 in the North and $18.72 in the South. The statewide average Class 1 price based on production is $18.47. This price is up $1.47 from the previous month, and $3.59 higher than a year ago. Farm milk output continues to slow down in Arizona. However, milk production is enough to meet processing needs. Class I demand is unchanged from last week. Handlers in many regions are sending more milk than usual to balancing plants due to educational institutions being closed. Some manufacturing plant operators report having ongoing maintenance work that reduces their daily intakes. Other plants are planning their maintenance and repair for the coming weeks, so they are ready for higher milk production in the fall. New Mexico farm milk production is steady, following the normal seasonal patterns. In some cheese plants, milk intakes decline due to repair and maintenance workloads. Class I demand is unchanged from last week. Class II sales are relatively stable. Topsoil moisture levels were reported as 44 percent adequate to surplus. The first cutting of alfalfa hay is 90 percent harvested and the second cutting is 40 percent harvested. Pacific Northwest milk is plentiful. Bottling demand has shifted to normal summertime patterns with the close of schools for the summer. Dairy manufacturers are not having any trouble getting the milk needed for production runs. Forages are in good supply. Pasture and rangeland are in good or excellent condition for 92 percent of Washington and 76 percent of Oregon. In the mountain states of Colorado, Idaho and Utah there is plenty of milk for most processing needs. Some manufacturers say they are taking in a little more milk than normal due to strong milk production and milk freed up from school milk bottling. A few cool, wet days have slowed the start of haymaking, but forage supplies are adequate. Pasture and rangeland conditions are good or excellent for 85 percent of Colorado, 87 percent of Idaho, and 75 percent of Utah. Condensed skim sales are flat to lower throughout the West. In some areas, demand and prices are decreasing while in other places demand remains steady. Supplies are long to steady. Industry contacts in the West region report that cream sales are strong into ice cream and cheese plants. However, supplies are still abundant in some areas, but tight in others. Cream multiples for all classes run this week from 1.10 to 1.26. According to the DMN National Retail Report-Dairy for the week of June 9-15, the national weighted average advertised price for one gallon of milk is $2.52, down $0.82 from last week, but $0.20 higher from a year ago. The weighted average regional price in the Southwest is $2.60, with a price range of $1.89-$3.99. The weighted average regional price in the Northwest is $1.75, with a price range of $1.69-$1.79. 1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 Mike.Bandli@ams.usda.gov (608)422-8592 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