MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 7, 2015 (REPORT 18)                              

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.1854-2.2965

Milk production is up in the Central region. Some manufacturers are 
running at or near full capacity as the flush is beginning. Bottling 
demand is starting to fall as the year is coming to an end for 
educational institutions. Retail promotions are also down which is 
affecting sales. Spot milk loads are available this week at $1 to $2 
under Class, with some reports showing $3 to $5 under. Some 
manufactures are cutting back on contract purchases because they can 
obtain better pricing in the spot market. Sources suggest that the 
spot loads available are not where they were in weeks past but are 
above where they should be. Class II demand is lower this week. Some 
sources suggest that the cooler weather is a factor and, as the 
temperatures warm up, demand for Class II will increase as well. Cream 
multiples are steady to lower this week, ranging from 1.18 to 1.24. 
Cream supplies are mixed. Some manufacturers are reporting that stocks 
on hand are tighter than expected. Ice cream manufacturers are 
competing for available supplies but the cooler weather has dropped 
demand for ice cream. The DMN monthly average of the range price 
series for Upper Midwest Class II cream during April was $2.1587, 
compared to $2.5568 a year ago. The NASS Dairy Products Report noted 
March U.S. regular (hard) ice cream production totaled 70.7 million 
gallons, up 3.5% from last year. January-March U.S. production totals 
184.9 million gallons, 1.7% up from 2014 during the same time span. 
March production in the Central region totaled 40.6 million gallons, 
3.5% more than a year ago. The DMN National Retail Report-Dairy for 
the week of May 1-7, noted the national weighted average advertised 
price for one gallon of milk was $2.68, down $0.23 from a week ago and 
$0.25 from a year ago. The weighted average price in the Midwest 
region was $2.00. The NASS Agricultural Prices report noted the 
national alfalfa hay price received during March averaged $172 per 
ton, compared to $193 a year ago. The average corn price was $3.81 per 
bushel, compared to $4.52 last year; while soybeans averaged $9.84 per 
bushel, compared to $13.70 a year ago. The all milk price averaged 
$16.80 per cwt, compared to $25.50 a year ago. The milk-feed ratio was 
2.00, compared to 2.54 a year ago. The weekly Cow Slaughter under 
Federal Inspection report shows U.S. dairy cow slaughter for the week 
ending April 18, at 54,300 head, 2,300 head more than the comparable 
week a year ago.  


1100CT Tara.Herbst@ams.usda.gov 608-557-7007 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home