MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 13, 2013 (REPORT 24)

Because of the May milk hearing in CALIFORNIA, the July Class 1 
price will not be announced until June 21.  The heat stress in 
the state over the weekend was not that bad because of the short 
duration and cool nights.  Temperatures did approach 110 in 
spots, but it was very short lived.  Handling milk has not been 
a problem this spring even with schools letting out for various 
vacation periods.  Feed stress problems are a bit less and milk 
prices are a bit better for producers.  Conditions were warm 
over the weekend in ARIZONA and will continue this week in the 
same vein.  Temperatures are nudging past the 110 mark.  The 
real problem is that it is now only getting down to the low 80s 
at night.  That does not give the cows much time to recover.  
Readings in the Southwest are running 7-13 degrees above normal 
for daytime highs.  Humidity levels remain low so far.  Milk 
receipt tests are declining seasonally.  Many schools are now on 
recess for the summer.  Plants are able to handle the milk flow 
efficiently.  Some plant intake people are surprised that milk 
receipts have not dropped off more rapidly with the current 
conditions.  The weather was also warm in NEW MEXICO, but 
conditions should cool off later in the week.  Dust storms were 
a real problem in parts of the state late last week.  The milk 
flow continues to hold near peak levels.  The southeast portion 
of the state is well into the second cutting of alfalfa.  The 
north central region is just finishing up the first cutting.  
Large square bales are being delivered to dairies at between 
$230-250/ton.  Small square bales are going for as much as $280-
300/ton.  CREAM markets are steady. Ice cream plants are taking 
some additional cream.  At the CME Group, Grade AA pricing 
closed at $1.54 on Wednesday, June 12, unchanged from last week.  
The CME price has either been $1.54 or $1.5450 for the last 12 
sessions at the Exchange.  Cream multiples are about steady in 
the 1.11-1.29 range and vary depending on class usage and basing 
points.  Some butter operations in the region are more active in 
marketing cream to reduce churning.  Favorable temperatures in 
the PACIFIC NORTHWEST are helping to keep milk production levels 
steady.  There are various discussions as to whether peak 
production has passed or if increases are still forthcoming.  
Class I usage is lower as schools finish their year and 
increased supplies are moving into manufacturing plants.  Milk 
is being handled efficiently within the region with few 
interruptions reported.  UTAH and IDAHO milk supplies are steady 
with recent weeks.  Temperatures are cooler than typical, and 
while helping cow comfort levels, it has slowed forage 
development.  Harvest of first crop hay is delayed with lower 
yields reported due to a shortage of heat units this spring.  
Dairy hay prices in the region are firming around $230/ton.  
Milk processing facilities have ample capacity for current milk 
supplies.


1100C Robert.Hunter@ams.usda.gov  608.278.4158
Butch.Speth@ams.usda.gov  608.278.4152
donaldonelson@ams.usda.gov  608.278.4156