MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 01, 2015 (REPORT 26)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.5186-3.0528

Milk production rates are mixed. Most manufacturers report steady 
production, with some saying farm intakes are still climbing. Supplies 
remain plentiful. Some sources indicate processors are discarding skim 
milk. Spot loads of milk are down this week, but are still available 
with most selling at $1-2 under Class, with some reports showing $3-6 
under. Bottling demand is lifeless. The warmer weather has consumers 
looking for other beverage options. Class II demand is up as ice cream 
is in full production and other cream-based products have increased 
demand. Multiples are higher, ranging from 1.32 to 1.60. Cream was 
tighter at the end of last week and the beginning of this week. 
Sources expect that multiples will decrease as the end of the week 
nears. Ice cream manufacturers are pulling heavier than normal due to 
inventory levels being lower than desired because of high butter 
prices last fall and more shelf space available in retail 
establishments. Manufacturers have also had heat related problems and 
have had to divert some shipments of cream. Finding available trucking 
continues to be an issue. The DMN National Retail Report-Dairy for the 
week of June 26 - July 2, noted the national weighted average 
advertised price for one gallon of milk was $2.38, down $0.14 from a 
week ago and $0.73 from a year ago. The weighted average price in the 
Midwest region was $1.92, with a range of $1.69-2.98. The weekly Cow 
Slaughter under Federal Inspection report shows U.S. dairy cow 
slaughter for the week ending June 13, at 49,000 head, 1,900 head more 
than the comparable week a year ago.  



1430CT 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