MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI October 19, 2017 (REPORT 42)

In California, farm milk production is higher, partly due to 
favorable climatic conditions. Many plants are running close to full 
schedules. Milk supplies are enough to fulfill contractual needs. 
Nonetheless, spot sales are limited. Class 1 intakes by schools and 
the retail sector are steady. In Arizona, increased milk output is 
prevalent this week. Class I requests are increasing in some parts of 
the state. Processing plants are working at or near full capacity. In 
Arizona, irrigation water availability has been declining. Topsoil 
and subsoil moistures are respectively 76 percent and 75 percent 
adequate. New Mexico milk production is flat to lower compared to the 
previous week. Recent rains have contributed to dropping farm milk 
production in some areas. Class I and II sales are steady while 
demand for Class III is steady to slightly increasing. Milk supplies 
are sufficient to meet all processing obligations. Milk production in 
the Pacific Northwest is steady and holding to seasonal patterns. 
Cool, wet weather has kept intakes rather flat and at levels that are 
expected for this time of year. Production is in good balance with 
processing needs and manufacturers say milk is readily flowing into 
cheese vats. In the mountain states of Idaho, Colorado and Utah, milk 
supplies have tightened somewhat, but industry contacts say there is 
still an abundance of milk for processing. Most of the loads are 
staying within the region and not moving to surrounding states. 
Manufacturers are ramping up for the stronger seasonal holiday 
demand. This has helped bring milk production into better balance 
with processing needs. The western condensed skim market is stable 
and loads are moving as planned. Cream continues to move well in the 
West. Many handlers are working on finalizing their 2018 cream 
contracts. Cream demand for Class II, III and VI is steady to strong. 
Supplies are starting to tighten in some areas, but remain plentiful 
in others. Some reports suggest that the ice cream season is over. 
However, a few processors state that their sales are still active. 
Cream multiples for all classes are 1.06-1.28. According to the DMN 
National Retail Report-Dairy for the week of October 13-19, the 
national weighted average advertised price for one gallon of milk is 
$2.96, down $0.01 from last week, but $0.41 higher from a year ago. 
The weighted average regional price in the Southwest is $3.69, with a 
price range of $1.89-$5.99. The weighted average regional price in 
the Northwest is $1.99, with no reported price range. 

1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 
Michael.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