MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI July 9, 2009
For the week of July 6-10, 2009 (REPORT 27)

WEST FLUID MILK 

The June 2009 4a price (butter/powder) in CALIFORNIA is 
$10.06, 3 cents higher than May but $5.55 lower than last 
year.  This compares to the Federal Order Class IV price 
for June 2009 at $10.22.  The June 2009 4b price (cheese) 
is $9.52, 2 cents lower than May and $9.60 lower than last 
year.  This compares to the Federal Order Class III price 
for June 2009 at $9.97.  Milk production in CALIFORNIA is 
trending lower at levels several percentage points lower 
than last year.  Processors were able to easily handle the 
milk supply over the holiday weekend.  Not only was the 
surplus milk situation lighter than in past years, but the 
holiday being on the weekend also helped mitigate plant 
labor and downtime.  The impact of heat, ration 
costs/changes, and culling, are factoring into the 
declines in the state.  Milk intakes are down to levels 
that processors have pulled back on plans to implement 
additional marketing caps on producers, although other 
groups continue to discuss options to lower milk 
production to increase milk prices.  Heat and humidity are 
impacting the milking herds and ultimately milk intakes in 
ARIZONA.  Processing plants are receiving less milk and 
adjusting schedules.  Fluid milk movement is steady to 
slower, reflecting declining retail demand and few 
features.  CREAM supplies were handled well over the 
holiday weekend with limited distressed loads noted.  
Prices are steady to higher with multiples moving higher 
on the bottom of the range while butter is weaker.  The 
butter price closed at $1.1850 at midweek, down 3/4 cents 
from last week.  Cream multiples range from 110-121 FOB 
and vary depending on class usage and basing points.  Milk 
production in WASHINGTON and OREGON are trending lower 
from the seasonal peak levels.  Weather conditions are 
favorable for cows and helpful for hay harvesting.  Dairy 
processing plants ran well over the holiday weekend with 
no problems reported.  In UTAH and IDAHO, milk output is 
holding up fairly well.  Low milk prices at the farm level 
continue to create hardships for producers.  Milk handling 
over the holiday went well, as observers noted having 
additional plants and capacity in Idaho helped this year.  
Plants are running well with few problems.  

1100CT Butch.Speth@ams.usda.gov 608.250.3202