California milk production is steady to trending slightly lower and thought to be coming off the seasonal peak in most areas. Weather conditions have been neutral throughout the state.

Output is feeling the effects of the low milk prices, high feed costs, seasonal declines and fewer cows because of increased culling and the CWT program.

The overall market undertone is depressed because of severe losses at current prices. Producers are doing whatever they can to mitigate the situation, but the prolonged low price cycle is creating financial pains.

Processing plants are running well and able to keep pace with the current milk supplies. Fluid milk interest is fair at summertime levels.

Cream markets remain on the steady to weak side with pricing levels often lower. Cream supplies are adequate for higher class products and surpluses continue to clear to butter production.

Movements into ice cream accounts are fair to good along projected levels.

Lower overall cream supplies are available because of declining milk output and lower fat levels of the incoming milk.

The Chicago Mercantile Exchange (CME) butter price closed at $1.2050 on June 17, down 2.75 cents from the prior week. Cream multiples are unchanged and range from 108-121 freight on board (FOB) and vary depending on class usage and basing points.

Oregon and Washington milk output is steady to slightly higher. Gains are noted from the recent hot spell and the momentum continues towards the seasonal peak. Processing plants are running along expected levels.

Continued wet weather is impacting the hay harvest. The condition of the cut hay is very poor with field chopping often the best option. Hay not cut is maturing and losing quality.

Conditions remain wet across Utah and Idaho. The impact at this time is more on the crops than on the milking herds. Hay is wet and not able to be harvested and other crops are growing very slowly.

Milk volumes are building seasonally. Plants are having only limited problems and able to balance the local milk supply.  PD