West Fluid Milk
07/29/2010 01:04PM
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MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI July 29, 2010
For the week of July 26-30, 2010 (REPORT 30)
WEST FLUID MILK
CALIFORNIA milk output has moderated; an often direct correlation to
the weather conditions in the state. Cows comfort has improved with
lower daytime highs, moderate to low humidity, and cooler nighttime
temperatures. Increases in milk prices at the farm level are being
welcomed and are improving the producers' outlook. Increased cheese
prices will help improve milk prices as recent increases are factored
into pricing formulas. Conversely, declining nonfat dry milk prices
will lower the solids portion of pricing formulas. Processing plants
are performing well across the state with only some minor issues
cropping up. Milk handling remains along plans and projections. Milk
placement is not being affected to any great extent by end product
values. The exception might be processor selling some cream loads to
take advantage of high overages/multiples in the current tight cream
environment. ARIZONA milk production has leveled off at what may be
summer low levels. Cows have generally gotten "used" to the weather
conditions and the measures in place to keep them comfortable.
Temperatures have cooled to just around 100 degrees, although humidity
levels remain high. Spotty rains are not impacting production.
Plants are running at expected levels. NEW MEXICO milk output is
steady to trending lower on a weekly basis, directly impacted by
summer weather conditions. Milk solids are also trending lower along
seasonal patterns. The incremental declines are along projected
levels. Plants are getting milk needs and working well. CREAM
markets continue to be firm with limited spot offerings. Demand is
fair to good for current supplies. Interest is less aggressive than
in previous weeks with buyers balancing needs against current high
costs of cream. CME Group Grade AA butter price closed at $1.8000 on
Wednesday, July 28, up 1 cent from a week ago. Multiples are mostly
steady, but lower on the top end of the 135-155 range and vary based
on class usage and basing point. Coastal areas of the PACIFIC
NORTHWEST had moderate temperatures, but further inland temperatures
were above normal. Cow comfort levels were stressed some, but overall
production remains above year ago levels. The heat is expected to
slow production slightly. Lower yields of solids have reduced
manufactured product yields across the region. Plants are operating
at normal to slightly reduced schedules. UTAH and IDAHO temperatures
were above normal and higher than normal humidity levels were causing
some concern for milk producers. Production levels dropped slightly,
but are above year ago levels. Ration changes made over the past year
are being blamed for lower solid yields. As some profitability
returns to the production side, farmers are adjusting feed intakes to
both increase production and maintain profits. Producers continue to
think about expansion, but farm lenders are watchful and cautious.
Dairy replacement heifers were slightly higher at auction in Idaho
this week. Top heifer price at one location was $1500, with the top
50 average price up $30 from two weeks ago to $1380.
1100CT
Butch.Speth@ams.usda.gov 608-278-4152
Robert.Hunter@ams.usda.gov 608-278-4158