MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 09, 2015 (REPORT 27)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest - $2.5451-2.8922  

Milk production continues to be mixed, with most manufacturers 
reporting steady farm intakes. The favorable weather continues to aid 
in cow comfort. Spot sales for fluid milk are limited this week with 
pricing at Class to $1 under. Most manufacturers are working with the 
milk supplies that they have because the dry products markets are so 
weak they do not want extra. Bottling demand is flat. Class II demand 
is strong. Ice cream orders are starting to decline. Multiples are 
steady to lower, ranging from 1.32 to 1.50. Cream supplies were 
available over the holiday weekend as some butter, ice cream and other 
manufacturers stopped production, but now have begun to tighten. Crop 
production in the upper part of the region is strong as most farmers 
have harvested second crop alfalfa. The DMN National Retail Report-
Dairy for the week of July 3-9, noted the national weighted average 
advertised price for one gallon of milk was $2.09, down $0.29 from a 
week ago and $1.02 from a year ago. The weighted average price in the 
Midwest region was $1.94, with a range of $1.69-2.77. The weekly Cow 
Slaughter under Federal Inspection report shows U.S. dairy cow 
slaughter for the week ending June 20, at 50,400 head, 1,900 head more 
than the comparable week a year ago. The June DMN monthly average of 
the range price series for Upper Midwest Class II cream was $2.4688, 
compared to $2.9734 a year ago. The NASS Dairy Products Report noted 
May U.S. regular (hard) ice cream production totaled 63.0 million 
gallons, down 10.8% from last year. January-May U.S. production totals 
315.9 million gallons, down 2.2% from 2014 during the same time span. 
May production in the Central region totaled 31.1 million gallons, 
18.5% less than 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