MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  September 24, 2015 (REPORT 38)                          

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.3754-4.3511           

Central milk production is mixed as handlers in the north report farm 
milk pickups are both lower and higher. In the south, handlers and 
processors note slight increases in milk intake volumes. Bottled milk 
demand is active into grocery outlets and education systems. 
Manufacturing milk demand is active, especially from cheese plant 
operators, but availability is limited. A few milk handlers indicate 
intakes are currently not sufficient to meet contracted volumes. Milk 
buyers/end users are reaching into the East region looking for milk, 
but those forays have met with limited success. On limited regional 
sales, prices for manufacturing milk range are above Class, up to 
$2.00. Cream demand is active as aerated cream, cream cheese, and sour 
cream production ramp up seasonally. Also, some ice cream/soft serve 
operations are pushing production beyond usual calendar limits. This 
is in response to warm weather and efforts to rebuild market share. 
Cream multiples are higher, ranging from 1.28-1.65, depending on 
timing, location, and other factors. Cream market participants 
anticipate lower multiples in the weeks to come, based on the current 
strong butter market. Crop harvesting continues, with corn for grain 
and soybeans nearing completion in the south and mid-Central areas. In 
the northern area, operators are harvesting corn for silage. Due to 
recent rainstorms, some harvesting and fieldwork plans have been 
delayed until fields dry out. The NASS Milk Production report noted 
August milk production in the 23 selected states was 16.3 billion 
pounds, 0.8% above a year ago. The following shows Central states 
included in the report and the changes compared to a year ago:  
Illinois, +2.0%; Indiana, +1.5%; Iowa, +3.9%; Kansas, +0.4%; Michigan, 
+4.1%; Minnesota, +4.7%; Ohio, +1.7%; South Dakota, +13.3%; Texas, -
1.4% and Wisconsin, +4.8%. Milk cows in the 23 selected states totaled 
8.628 million head in August, 43,000 head more than a year ago. 
According to the DMN National Retail Report-Dairy for the week of 
September 18-24, the national weighted average advertised price for 
one gallon of milk is $2.69, $2.56 in the Midwest and $2.67 in the 
South Central region.

1100CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home