The February 4a price (butter/powder) in California is $14.28, $2.12 lower than January but $1.94 more than last year.

Cream prices are higher and reflect the higher butter prices and higher multiples. Demand for high class items is better and utilizing more cream in holiday items. The interest is higher as orders are placed. Ice cream output is building slightly. Tankers have become more available, although higher trucking charges and increased fuel surcharges are making it more expensive to ship surplus cream. At the CME, butter prices have increased 9.5 cents and closed at $1.3200 on Wednesday, March 5. Multiples are higher, ranging from 105 - 120, and vary depending on class usage and basing points.

Cows and young stock have started to go out on pasture on the west side in the Pacific Northwest. It is a bit earlier than normal, but conditions are dry enough and there is some good grass growth. The other factor, of course, is the very high cost and limited amounts of hay left in the barns. Anything that can be done to reduce hay usage is a positive on the bottom line. Conditions later may force cows back off grass if it gets very wet again, but things are fine for now. A small boost in milk production is usually related to getting cows out on fresh grass.

Winter weather continues to cover most of the dairy areas in Utah with less winter stress noted in Idaho. Milk output remains steady with tests and SCC counts at good winter levels. Mud has not been much of a factor on dairies yet. Dairy plants are able to stay as full as they want to be with local milk supplies and offers from outside the region. Heifer prices at a sale in the region are back down slightly again. The top animals are selling at $2540 with the average coming in at $2150.  PD