DAIRY MARKET NEWS PRICE SUMMARY FOR OCTOBER 14 - …

DAIRY MARKET NEWS

WEEK OF DECEMBER 30, 2019 ? JANUARY 3, 2020

VOLUME 87, REPORT 1

DAIRY MARKET NEWS AT A GLANCE

CME GROUP CASH MARKETS (1/3) BUTTER: Grade AA closed at $1.9500. The weekly average for Grade AA is $1.9625 (-.0675). CHEESE: Barrels closed at $1.6425 and 40# blocks at $1.8900. The weekly average for barrels is $1.6519 (-.0144) and blocks, $1.8931 (+.0625). NONFAT DRY MILK: Grade A closed at $1.2325. The weekly average for Grade A is $1.2288 (-.0106). DRY WHEY: Extra grade dry whey closed at $.3150. The weekly average for dry whey is $.3113 (-.0006).

CHEESE HIGHIGHTS: Cheese production is in the mixed variety again as the market experiences back to back holiday shortened weeks. A few plants are running strong, while others are less cheesy as they invoke holiday downtime. The impetus for pushes in cheese production is the availability of discounted milk throughout all regions. Meanwhile, retail and food service supports a sufficient amount of the current demand, as holiday demand fizzles. Mozzarella and provolone complements year-end festivities and football playoffs through feel good foods, in the vein of pizza. Cheese stocks are overall in good balance with customer needs. Wholesale cheese prices are generally higher, barring the unchanged Swiss price.

BUTTER HIGHLIGHTS: Readily available cream volumes at lower prices are driving butter production across the country. In some plants, microfixing is slowing as churning rates pick up. As the year draws to a close, print demand is notably reduced, but interest does exist around retail stores' post-holiday restocking needs. Bulk interest is light to moderate. According to market players, some bulk butter buyers are still looking to get coverages for Q1 and Q2 needs. This week, bulk butter pricing varies by regions: East, 4.0 cents to 7.0 cents over the market; Central, 1.0 cent to 3.25 cents above the market; West, even to 7.5 cents over the market, with various periods and averages used.

FLUID MILK: Fluid milk production is steady to trending higher

in all regions of the United States. The focus of most processors was milk management during the holiday. The schools and several processing facilities were closed and couldn't take their usual loads of milk. Class I intakes are lower, leading to the redirecting of more milk loads to balancing facilities. This week, some Midwest milk were moved to the Southwest for clearing. Cream is abundant across the country. Therefore, churning schedules were very busy. Cream multiples have been low for the past 2 weeks, ranging 1.00-1.10 in the East, 1.05-1.18 in the Midwest, and .95-1.18 in the West. Eastern excess cream found its way to the Midwest for processing. Condensed skim market tone is weak in the East, and prices have declined. There were also more loads of condensed skim in the spot market. Drying schedules are active in the West.

DRY PRODUCTS: Low/medium heat NDM demand is trending down this week. Dryers were kept busy with condensed skim processing. Low/medium heat NDM prices are steady in the Central and East, but have decreased a bit in the West. Supplies are increasing. High heat NDM prices have remained steady in the Central and East, but are flat to lower in the West. Sales and production are lighter. Dry buttermilk prices are unchanged from the previous week. Spot demands are limited. Outputs are mostly up with some variations across areas noted. Dry whole milk market conditions are unchanged from a week ago. Orders are mostly based on contracts. Current stocks are sufficient to satisfy demands. Prices are flat. Except in the West, where the prices at the bottom of the range declined, dry whey prices are unchanged from a week ago. Many buyers are waiting to see the direction of prices before making major purchases. Dry whey stocks are available, and for the most part, they are balanced. The market undertone is quiet. WPC 34% sales are low, whereas prices are stable. Supplies are light to balanced. Lactose output and prices are steady. Inventories are in good equilibrium with demands. Sales are limited as market participants transition to Q1 contractual agreements. Acid and

-CONTINUED ON PAGE 1A-

TABLE OF CONTENTS

Product Highlights/CME/DMN at a Glance

1 Dry Whey/WPC 34%/Lactose/Casein

6 December Class and Component Prices

13

Weekly CME Cash Trading/Butter Markets

2 U.S. Dairy Cow Slaughter/Class Milk Prices/NDPSR/Futures 7 Dairy Graphs

G1

Cheese Markets

3 International Dairy Market News

8 National Retail Report ? Dairy

Fluid Milk and Cream

4 DMN December Monthly Averages

9 Dairy Market News Contacts

Nonfat Dry Milk/Dry Buttermilk/Dry Whole Milk

5 November Agricultural Prices

12

Commodity NDM Central Low/Med. Heat

Change Central High Heat

Change West Low/Med. Heat

Change West High Heat

Change DRY WHOLE MILK

National Change

DAIRY MARKET NEWS PRICE SUMMARY FOR DECEMBER 30, 2019 - JANUARY 3, 2020

Range

PRICES ($/LB) & CHANGES FROM PREVIOUS PUBLISHED PRICES

Mostly

Commodity

Range

Mostly

Commodity

BUTTERMILK

LACTOSE

1.2200 1.2900 1.2300 1.2600 Central/East

1.1000 1.1500

Central/West

N.C. N.C. N.C. N.C.

Change N.C. N.C.

Change

1.2500 1.4200

West

1.0550 1.1500 1.0900 1.1200 WPC 34%

N.C. N.C.

Change N.C. N.C. N.C. N.C. Central/West

1.1775 1.2875 1.2100 1.2600 WHEY

Change

N.C. -0.0075 -0.0100 N.C. Central

0.2850 0.4000 0.3200 0.3600 CASEIN

1.2700 1.4025

Change N.C. N.C. N.C. N.C. Rennet

N.C. -0.0175

West

0.2550 0.4050 0.3175 0.3800

Change

Change -0.0025 N.C. N.C. N.C. Acid

1.7500 1.8000

Northeast

0.3075 0.3825

Change

N.C. N.C.

Change N.C. N.C.

ANIMAL FEED WHEY

Central

Change

Range

0.1800 0.3700 N.C. N.C.

0.8250 1.1500 N.C. N.C.

3.7275 N.C.

3.4650 N.C.

3.7675 N.C.

3.7050 N.C.

0.2800 0.3000 N.C. N.C.

Mostly

0.2500 0.3300 N.C. N.C.

0.9350 1.0500 N.C. N.C.

Commodity SMP W. Europe

Oceania

S. America

WHEY W. Europe

Change Change Change

Change

DAIRY MARKET NEWS PRICE SUMMARY FOR DECEMBER 23, 2019 - JANUARY 3, 2020

PRICES ($/MT) & CHANGES FROM PREVIOUS PUBLISHED PRICES

Range

Commodity WHOLE MILK POWDER

Range

Commodity BUTTER

2775 2950

W. Europe

3375 3500

W. Europe

N.C. N.C.

Change N.C. N.C.

Change

2800 2950

Oceania

3075 3175

Oceania

N.C. N.C.

Change N.C. N.C.

Change

2700 3100

S. America

3050 3250

BUTTEROIL

-50

-50

Change

-50

-50

W. Europe

Change

775 1050 N.C. N.C.

CHEDDAR CHEESE Oceania

Change

Range

3925 N.C. 3800 N.C.

4100 N.C. 3925 N.C.

4825 5450 N.C. N.C.

3800 N.C.

4050 N.C.

WEEK OF DECEMBER 16 - 20, 2019

DAIRY MARKET NEWS DAIRY MARKET NEWS AT A GLANCE

VOLUME 86, REPORT 51

-CONTINUED FROM PAGE 1-

month of November 2019 was up 5.5 to 104.5. Compared to November

2018, the index was up 18.9 points (22.1 percent). The index of prices

rennet casein prices are flat. Casein trading activities are low, but paid by farmers for commodities and services, interest, taxes, and wage

production is ongoing.

rates in November 2019 was up 0.3 points to 110.4. Compared with

INTERNATIONAL DAIRY MARKET NEWS: EUROPEAN November 2018, the index was up 0.6 point (0.5 percent).

OVERVIEW: WESTERN OVERVIEW: As 2019 draws to an end, DECEMBER CLASS AND COMPONENT PRICES (USDA,

Western European dairy observers comment that annual milk FMMO): The following are the December 2019 class prices under the

production does not seem on track to increase as much as had been Federal milk order pricing system and changes from the previous

projected a year ago. France and Germany, traditionally the largest milk month: Class II: $16.81 (-$0.04), Class III: $19.37 (-$1.08), and Class

producers, had disappointing results so far. A factor leading to lower IV: $16.70 (+0.10). Under the Federal milk order pricing system, the

than expected milk production was feed. Early 2019 feed quality and butterfat price for

quantity, had been adversely affected by previous summer weather. On December 2019 is $2.1952 per pound. Thus, the Class II butterfat price

the positive side, ZMB reports that the EU wide average fat content in is $2.2022 per pound. The protein and other solids prices for December

milk for 2019 through October is slightly higher than the same months 2019 are $3.6515 and $0.1341 per pound, respectively. These

of 2018. An increase in milk protein for 2019 over 2018 was also noted. component prices set the Class III skim milk price at $12.11 per cwt.

EASTERN OVERVIEW: Ukraine is expanding export markets for The December 2019 Class IV skim milk price is $9.34, which is derived

condensed milk. Currently focused on Baltic countries, interest from from the nonfat solids price of $1.0378 per pound. The product price

Portugal, Spain and parts of Scandinavia is leading to additional averages for December 2019 are: butter: $1.9842, nonfat dry milk:

demand.

$1.2161, cheese: $2.0509 (40-pound blocks: $1.9363 and 500-pound

OCEANIA OVERVIEW: AUSTRALIA: Milk production in barrels: $2.1395) and dry whey: $0.3293.

Australia continues the seasonal decline. During November, milk

production was 3.4 percent below November last year, according to

Dairy Australia. Market activity has been quite slow during the two-

week holiday period. NEW ZEALAND. New Zealand is a couple of

months into the seasonal decline in milk production. Nevertheless,

production volumes are still relatively high. Some current production is

intentionally focused on filling contract obligations several months

ahead, especially whole milk powder. In some cases, manufacturers are

targeting further ahead to continue building stocks into the low milk

production seasonal carryover period, June, July, and August. There is

increasingly voiced concern from agricultural lenders about dairy

producer debt. This has led to more conservative lending practices.

Dairy financial distress is a topic getting more attention in New

Zealand.

SOUTH AMERICA OVERVIEW: In 2019, milk production in

South America behaved like a roller coaster as it began very slowly in

the first half of the year, but suddenly increased in the second half,

approaching the productive levels of 2018. Part of this fluctuation of

milk production was caused by climate variations during the entire year.

In the last few weeks of 2019, the effects of El Ni?o have been weak,

but have caused dryness in several dairy areas, reducing the volume and

quality of forage and some concentrate crops. However, grain stocks

remain broad throughout the continent at affordable prices for dairy

operators. Excluding Brazil, milk supplies moving into the

manufacturing sector are acceptable. In Argentina, during the past two

weeks, the newly elected president announced a possible

implementation of export tariffs on agricultural commodities, including

corn, soybean, dairy powders, among others, as a measure to increase

government revenues.

NATIONAL RETAIL REPORT (DMN): This week, the total

number of advertisements decreased 19 percent for conventional dairy

products, while for organic increased by 99 percent. The national

weighted average advertised price for conventional milk half gallons is

$1.60, compared to $3.85 for organic milk half gallons, representing an

organic premium value of $2.25. Total ads of conventional and organic

cheese decreased 21 percent and 6 percent, respectively. The weighted

average price for conventional 8 oz. shred cheese is $2.41, and $3.99 for

organic. The total number of ads for conventional yogurt increased 37

percent and noticeable raised by 1,684 percent for organic.

NOVEMBER AGRICULTURAL PRICE HIGHLIGHTS

(NASS): The All Milk price received by farmers was $21.00 in

November, up $3.80 from November 2018. The alfalfa hay price was

$173.00 in November, unchanged from November 2018. The corn price

was $3.68 in November, up $0.27 from November 2018. The soybean

price was $8.59 in November, up $0.23 from November 2018. The milk

-feed price ratio was 2.61 in November, up 0.40 from November 2018.

The index of prices received by farmers for dairy products during the

-1A-

DAIRY MARKET NEWS, DECEMBER 30, 2019 - JANUARY 3, 2020 -2-

VOLUME 87, REPORT 1

COMMODITY

CHEESE BARRELS

40 POUND BLOCKS

MONDAY DEC 30

$1.6225 (+0.0225) $1.8700 (+0.0400)

TUESDAY WEDNESDAY THURSDAY

DEC 31

JAN 1

JAN 2

$1.7000 (+0.0775) $1.9100 (+0.0400)

No Trading No Trading

$1.6425 (-0.0575) $1.9025 (-0.0075)

FRIDAY :: JAN 3

WEEKLY :: WEEKLY

CHANGE

AVERAGE

$1.6425 (N.C.)

::

:: $1.6519

:: (+0.0425) :: (-0.0144)

$1.8900 ::

:: $1.8931

(-0.0125) :: (+0.0600) :: (+0.0625)

NONFAT DRY MILK GRADE A

BUTTER GRADE AA

$1.2250 (-0.0075) $2.0000 (-0.0350)

$1.2300 (+0.0050) $1.9500 (-0.0500)

No Trading No Trading

$1.2275 (-0.0025) $1.9500

(N.C.)

$1.2325 :: (+0.0050) ::

(N.C.)

:: $1.2288 :: (-0.0106)

$1.9500 (N.C.)

::

:: $1.9625

:: (-0.0850) :: (-0.0675)

DRY WHEY EXTRA GRADE

$0.3050 (-0.0100)

$0.3125 (+0.0075)

No Trading

$0.3125 (N.C.)

$0.3150 :: (+0.0025) ::

(N.C.)

:: $0.3113 :: (-0.0006)

CWPrhiHcaneEsgYes,hi4os1wt,h0ne0ad0ri-ef4fi5en,r0eU0n.0cSel.bbdseo.tlwWlaereesenpkelcyrurlCbreh.naintnagcneadrilspotrtheqevuisaounumtsitWioefseD.eCkaliaylrylAoPtvrueicnreaitgCewh.eaCingoghmetssp:.uCWteHedEebkEylSyDEAa,vi4rey0r,aM0g0ea0ri-ks4e4tth,0Ne0es0iwmlsbpsflo.e;raNivnOeforNarFgmeAaotTifoDtnhaRelYDpuaMriplIyoLsCKeas,s.4hT1hC,0ils0o0ds-ea4tpa5r,ii0sc0ea0svlfaboilsra.;tbhBleeUcoTanlTethnEedRa,Irn4wt0ee,r0en0ke0.t-Wa4t3e,e0k0l0y lAbsv.e;DraRgeY

NOTICE: Five days of trading information can be found at trading/agricultural/spot-call-data.html

BUTTER MARKETS

NORTHEAST

Ample cream and lower multiples prompt active butter churning. Some manufacturers, who are filling current orders and replenishing stocks, are pleased to see the additional cream. As the year draws to a close, print demand is notably reduced, but interest does exist around retail stores' postholiday restocking needs. Given the decelerated holiday demand, market participants are mulling over expanding inventories pressuring butter prices lower, as a few buyers appear resolved to wait-and-see what the New Year butter market brings. The market undertone is unsettled as both buyers and sellers attempt to determine market direction. Bulk prices for domestic sales are 4 to 7 over the market of the CME Group, with various time frames and averages used.

Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional,

and Edible Butter

Bulk Basis Pricing - 80% Butterfat $/LB:

+0.0400 - +0.0700

Secondary Sourced Information:

CME TRADIN The Tuesday CME Group Grade AA butter price closed at $2.00, down $0.0275 from the previous Tuesday's close.

Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional,

and Edible Butter

Bulk Basis Pricing - 80% Butterfat $/LB:

+0.0100 - +0.0325

WEST

In the West, butter manufacturing is active due to increased cream offers during this holiday week. Cream is moving to any processing plant that has room and is willing to take additional loads. Manufacturing facilities that will be open during the first day of 2020 are prepared for the cream churning rush that usually takes place. Butter inventories are adequate to satisfy the needs of buyers. Demands for the holiday were good. However, with all the holiday needs met, retail orders are currently low. According to market players, some bulk butter buyers are still looking to get coverages for Q1 and Q2 needs. Prices are unchanged from a week ago. The condition of the butter market is within seasonal expectations.

Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional,

and Edible Butter

Bulk Basis Pricing - 80% Butterfat $/LB:

0.0000 - +0.0750

CENTRAL

Readily available cream is driving production at butter plants in the Central region. A slowdown is not likely as manufacturers expect to see high butter output well into next week. Operations that maintain near capacity levels are not pressured to take on additional volumes. Given the cream availability, microfixing is slowing as churn rates pick up. Cream is trading at f.o.b. multiples as low as 1.08. Overall, demand varies flat to sluggish, as domestic buyer interest remains light early in the week. Retail orders improved slightly this week from sales seen last week. Bulk interest is light to moderate as prices range from $0.01 to $0.0325 over the market, with various time frames and averages used. Buyers continue to assess their supply situation following the year-end holidays. The market is unsettled as prices edge lower.

DAIRY MARKET NEWS, DECEMBER 30, 2019 - JANUARY 3, 2020 -3-

VOLUME 87, REPORT 1

CHEESE MARKETS

NORTHEAST Northeast cheese production schedules are a bit slower, as some operations are shut down for a couple days during the holiday season. Manufacturers' cheese supplies are available in the region. Mozzarella and provolone cheese markets are healthy in retail sectors. Cheddar cheese barrel and block prices have currently increased on the CME Group this shortened trading week. At this time, several market participants are satisfied with their year-end orders. There have been a few trades on various spot markets, however spot trading has been slower during the holidays. In the Northeast, the wholesale cheese prices for both cheddar and Muenster increased $0.0500. In addition, the process cheese prices heightened $0.0250. The Grade A Swiss price is steady this week.

WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

Cheddar 40 pound Block Muenster Process American 5 pound Sliced Swiss 10-14 pound Cuts

2.2850-2.5725 2.2725-2.6225 1.8225-2.3025 3.4925-3.8150

Secondary Sourced Information:

Cold Storage ? Cheese Summary Released December 23, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA).

MIDWEST Central cheese makers say orders are slow to return in this second shortened week of the winter holidays. Blocks and barrels are both readily available for any buyer looking to get an early start on reorders. Milk for processing is abundant, and spot loads offered at $6 to $8 under Class III are common. Cheese manufacturers report picking up a few extra loads at these discounted prices just to fill up processing runs. While some processing facilities have scheduled downtime, other cheese plants are running straight through the week.

WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

Cheddar 10 pound Cuts Cheddar 40 pound Block Monterey Jack 10 pounds Process American 5 pound Loaf Swiss 6-9 pound Cuts

2.1600-2.3600 1.9125-2.4025 2.1475-2.4225 1.7700-2.0250 3.0900-3.5200

FOREIGN TYPE The German cheese market is stable in this holiday week. Sliced cheese manufacturing remains active, whereas sales have slowed down temporarily as the holiday needs have been met. Stocks of sliced cheese, although low, have started to build up little by little since last week. Market participants expect the increase in stocks will help meet customers' needs in the coming weeks when normal activities resume, without putting any pressure to sell on processors. In the U.S., domestic prices for blue, gorgonzola, parmesan, and Romano have increased $.0250, whereas the prices of all other cheese types in the table below are unchanged from the previous week.

WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)

: NEW YORK

VARIETY

: IMPORTED : DOMESTIC

:

:

Blue

: 2.6400-5.2300 : 2.3450-3.8325*

Gorgonzola

: 3.6900-5.7400 : 2.8525-3.5700*

Parmesan

:

-0-

: 3.7325-5.8225*

Romano

:

-0-

: 3.5350-5.6900*

Sardo Romano (Argentina) : 2.8500-4.7800 :

-0-

Reggianito (Argentina)

: 3.2900-4.7800 :

-0-

Jarlsberg

: 2.9500-6.4500 :

-0-

Swiss

:

-0-

: 3.5300-3.8525

Swiss (Finland)

: 2.6700-2.9300 :

-0-

Midwestern wholesale prices are unchanged for Swiss cuts, up $.0500 for process and up $.0250 for all other types.

WISCONSIN WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

Blue 5 pounds Brick 5 pounds Cheddar 40 pound Block Monterey Jack 10 pounds Mozzarella 5-6 pounds Muenster 5 pounds Process American 5 pound Loaf Swiss 6-9 pound Cuts

2.4675-3.5375 2.2000-2.6250 1.9225-2.3225 2.1750-2.3800 2.0000-2.9450 2.2000-2.6250 1.7525-2.1125 3.0075-3.1250

COLD STORAGE

WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS

:

BUTTER

CHEESE

12/30/2019

:

49756 :

78392

12/01/2019

:

48777 :

79534

CHANGE

:

979 :

-1142

% CHANGE

:

2 :

-1

WEST Western cheese production is active amid ample amounts of milk. Industry contacts report discounted milk is still available in parts of the western region. While cheese orders have slowed during the winter holiday weeks, retail demand leading up to the festivities has pulled at cheese stocks. Cheese makers are hopeful that the advent of the pro football playoffs will also spur on the need for more cheese for pizza. Inventories are in good balance with customer needs.

DAIRY MARKET NEWS, DECEMBER 30, 2019 - JANUARY 3, 2020 -4-

VOLUME 87, REPORT 1

EAST

During the holidays, milk production is flat to slightly picking up off farms in the Northeast. Class I orders are lower this week as educational intuitions are closed for the holidays. Balancing operations are receiving heavier milk loads available in the area. Mid -Atlantic milk output is level. Class I sales are lower as bottlers have scheduled milk cuts. A few balancing operations are also receiving more milk loads during the holiday. Southeast milk production is higher. Available milk loads are clearing to manufacturing plants this week. Florida milk production is increasing at a steady pace. Class I sales have dropped, yet sales are expected to pick back up next week. Cream loads are available, however buyers' interests are on the lighter side. More cream is clearing to butter churns this week. Cream multiples are ranging from 1.00-1.10 F.O.B. Condensed skim markets are weaker. There are reports more loads are available in the region, and manufacturers' offers are at lower prices currently.

Northeastern U.S., F.O.B. Condensed Skim Price Range - Class II; $/LB Solids: Price Range - Class III; $/LB Solids:

0.60 - 1.05 0.50 - 1.00

Northeastern U.S., F.O.B. Cream Multiples Range - All Classes: Price Range - Class II; $/LB Butterfat:

1.0000 - 1.1000 2.0300 - 2.2330

on last week are still actively being used for cream load management. In New Mexico, drying and churning are helping keep milk and cream loads under control. Orders for next week delivery are up as schools are expected to reopen soon. Meanwhile, this week intakes are flat. Farm milk yields are at seasonal levels. Overall, the market tone is nothing short of expectations. Pacific Northwest milk production is steady. School milk bottling is still at the mid-winter low tide. But most manufacturers are running regular weekly schedules, and intakes are balanced with processing needs. Milk production in the mountain states of Idaho, Utah, and Colorado, is steady to higher. Milk flows are getting back to normal following the holiday last week, with fewer disruptions for the New Year holiday week. However, discounted milk loads are still common in parts of the region. A lot of condensed skim is clearing through the dryers this week. Although availability has picked up, condensed skim continues to be efficiently processed. The market is expected to return to normal activities/processing next week. Cream offers are plenteous in the western dairy market as many plants are closed for either a day or multiple days at a time during the holiday week. As the result, cream churning is active wherever there is extra room. Cream multiples for all Classes are still low at last weeks' price points.

Western U.S., F.O.B. Cream Multiples Range - All Classes:

0.9500 - 1.1800

MIDWEST

Farm milk output is steadily increasing in the Midwest, following seasonal expectations. With the holiday, Class I and II sales are trending down. Processing facilities are running at full capacities. Nonetheless, there are not enough spaces to clear all the milk. Therefore, multiple loads of milk are being moved to the Southwest to accommodate momentary processing needs. Discounted loads of Class III milk are trading in the range of $8 to $2 below Class. For that reason, some midwestern Class III manufacturers are taking advantage of this opportunity to increase their milk intakes. Cream is also plentiful in the Midwest with the closing of several plants for the holiday. However, the plants that have remained open, are churning more cream. There have been some movements of excess cream from the Northeast to the Midwest. Cream multiples for both Class II and all Classes are still low and unchanged from the previous week.

Price Range - Class III Milk; $/CWT; Spot Basis: Trade Activity: Slow

-8.00 - -2.00

Midwestern U.S., F.O.B. Cream Multiples Range - All Classes: Price Range - Class II; $/LB Butterfat: Multiples Range - Class II:

1.0500 - 1.1800 2.2736 - 2.3954 1.1200 - 1.1800

WEST

California milk production is stable. Despite busy processing schedules, milk is being cleared without any major incident. Class II and bottled milk requests remain low, but demands are in line with projections. Processing plants that are open during the holiday are being run at full capacities to ensure that all milk loads find a home. Milk production in Arizona is unchanged from the previous week. However, the total volumes produced are lower compared to last year at this time. There remains more than enough milk for processing, especially with the decline in Class I intakes from schools' accounts and the schedule changes at different plants. Some Class IV processors were able to take in additional out-of-state milk loads to accommodate the holiday clearing needs. The churns that were turned

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