MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI May 16, 2013 (REPORT 20) CALIFORNIA milk production is holding mostly steady with recent weeks. There is some wonderment whether the peak has been placed for the year. Some areas in the north are seeing slightly more milk as conditions warm and new feed is fed or grazed. Weather conditions have been generally neutral to milk output. Daytime temperatures are building, yet nighttime conditions are cooling with little stress on cows. The lingering effects of the general dairy economy are thought to be the biggest reason for milk being at current levels with little indications of movement. Processing plants are working well to handle the available milk intakes. Milk is being placed for manufacture of all dairy products. There are some colleges and schools ending the spring terms, putting fluid milk for processing. Otherwise, Class 1 interest is steady to slightly lower. The June 2013 Class 1 prices in CALIFORNIA range from $20.84 in the north to $21.12 in the south. The statewide average Class 1 price based on production is $20.86. The average is $1.45 higher than May and $4.03 higher than June 2012. NEW MEXICO milk supplies are adequate for processor needs. There were some milk movements around because of a plant issue. Other plants were able to absorb the extra. Weather conditions are neutral. First crop hay is being harvested throughout most of the southern portions of the state. CREAM markets are unsettled. Creams supplies are moderate to heavy in the region. Supplies are moving to the churn to balance. Ice cream interest is slowly developing. Some additional interest was noted from cultured product processors. At the CME Group, Grade AA butter pricing closed at $1.5950 on Wednesday, May 15, down 3.5 cents from a week earlier. Cream multiples are slightly higher this week, range from 1.04 to 1.27, and vary depending on class usage and basing points. Milk production in the PACIFIC NORTHWEST is slowly building towards the spring flush. Temperatures have been favorable with warm days and cool nights adding to comfort levels for dairy cows. The increased milk production is being utilized by manufacturers within the region with cheese and powder plants as the preferred destination. Class I needs are mostly steady. Milk pooled on the Pacific Northwest Order 124 totaled 719.2 million pounds in April 2013; approximately 598 producers delivered milk to the market. The average daily delivery per producer was 40,088 pounds. Class I utilization was 173.8 million pounds and accounted for 24.2 percent of producer milk. The producer price differential (PPD) for the Pacific Northwest Order was $0.57 per cwt., resulting in a statistical uniform price of $18.16 per cwt. The statistical uniform price for the Pacific Northwest Order was $0.34 above last month, and $2.29 above the same month last year, an increase of 14.4 percent. Milk supplies in UTAH and IDAHO are increasing slowly with comfortable temperatures. Increased manufacturing capacity in the region continues to accommodate any increases in milk volumes. Irrigation supplies are reported to be adequate for the upcoming growing season. Dairy farmers are busy securing forage and grain contracts. Prices for feed continue to be a major concern for dairies. 1100C Robert.Hunter@ams.usda.gov 608.278.4158 Butch.Speth@ams.usda.gov 608.278.4152 donaldonelson@ams.usda.gov 608.278.4156