MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  June 25, 2015 (REPORT 25)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3915-2.5813           

Milk production in the Central region is variable. Dairy producers in the 
southernmost states report on-farm production is trending lower as daytime 
temperatures and humidity increases. However, in the northern tier of 
states, milk production has generally plateaued. Processors there expect 
the peak may have occurred in some locations, but are they are waiting in 
weekly intake reports to verify that. Bottling demand is steady at some 
facilities, but moved higher at other plants serving vacation areas. 
School district managers are still ordering single serve milk packages, 
but at generally reduced levels for filling summer meal programs. As the 
malaise in dairy commodities markets continues, some dairy cooperatives 
are reducing milk premium payments to dairy producers as a way to bridge 
the gap between milk and dairy commodities prices. The NASS Milk 
Production report noted May milk production in the 23 selected states was 
17.2 billion pounds, 1.4% above a year ago. The following shows Central 
states included in the report and the changes compared to a year ago: 
Illinois, +4.8%; Indiana, +2.3%; Iowa, +4.4%; Kansas, +4.4%; Michigan, 
+7.6%; Minnesota, +3.8%; Ohio, +1.3%; South Dakota, +8.9%; Texas, -.1.6% 
and Wisconsin, +4.4%. Milk cows in the 23 selected states totaled 8.630 
million head in May, 72,000 head more than a year ago. Cream availability 
tightened within the region as components trend seasonally lower. Also, 
active cream demands from ice cream, frozen desserts, and aerated cream 
manufacturers are decreasing cream volumes clearing into churns. Multiples 
are higher, ranging from 1.26 to 1.36. The weekly Cow Slaughter under 
Federal Inspection report shows U.S. dairy cow slaughter for the week 
ending June 6, at 53,200 head, 4,700 head more than the comparable week a 
year ago.  

1100CT Janet.Linder@ams.usda.gov 608.5577003
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