The statewide average Class 1 price based on production is $18.26. The average is $1.00 lower than September 2008 and $5.31 lower than October 2007. California milk production is trending higher as cows recover as weather conditions are nearly ideal for cow comfort. Processing plants are running on lighter-than-expected schedules, which are welcomed. Less milk and components have to leave the state. Bottled milk interest is mostly steady and moving along projected levels.

Arizona milk production is holding steady as weather has been more moderate for milk cows, although output has not responded. New Mexico milk output is trending slightly higher off the seasonal low levels. Fat and protein contents in the milk are steady. Supplies have been in good balance and is able to be handled locally. Supplemental shipments of fluid milk to the Southeast are beginning to move.

Cream markets are steady to weaker. Butter pricing and indexes have moved higher, while multiples have slipped. There has been some resistance to paying higher cream prices, especially as cream supplies are adequate to long for current needs.

In the Pacific Northwest, milk output is steady to lower and following recent trends. Often, the biggest factor is that feed ration adjustments have been changed to mitigate feed costs. More hay is said to be available, often because dairy producers are not able or willing to pay for hay at this time. The hope is that upcoming corn silage harvest will help ration costs, although the lack of maturity of the crop may be an issue. Processing plants in the region are handling the milk supplies well. A monthly springer Holstein heifer sale had lower numbers and a weaker trend with supreme heifers selling from $2000 - $2200, down $75 - $100 from the prior sale.

Utah and Idaho milk production remains strong. The biggest growth factor is the addition of cows into herds. Plants in the region are operating at moderate to high levels to handle the supply.  PD