MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  October 29, 2015 (REPORT 43)                            

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.0085-3.3044           

Farm milk production is mixed throughout the Central region, with 
Texas and Kansas showing signs of production rebounding. In North 
Central states, farm milk production is generally steady. Sales into 
bottling plants are unchanged for this week, but some plant managers 
anticipate higher intakes starting next week as production of holiday 
products begins. Prices on spot milk loads range from flat Class to 
$1.00 over Class through the end of October. Looking toward November, 
milk marketers report several Central cheese manufacturers with 
variably supply contracts have set lower intake volumes for November. 
This is expected to result in higher milk volumes clearing into 
butter/powder facilities in November, and potentially lower prices on 
spot milk loads. Recent rainstorms in Texas and Kansas, with rainfall 
totals ranging from 3 to 20 inches, have delayed corn harvesting as 
operators wait for fields to dry out. However, overall harvest 
progress is on par or ahead of one year ago. In the North Central 
area, corn harvest is also progressing, but some operators are hoping 
for dryer weather to help corn moisture decrease before harvest. Cream 
multiples for Class II narrowed, with a range of 1.22-1.34. Ice cream 
manufacturers indicate they are settling into off-season production 
schedules, which call for lower cream volumes to maintain inventories. 
Cream sales into butter production are active. According to the DMN 
National Retail Report-Dairy for the week of October 23-29, the 
national weighted average advertised price for one gallon of milk is 
$2.60 and $2.77 in the Midwest.

Dairy Market News Reporting Changes Proposal
Dairy Market News (DMN) is proposing updating the Dairy Market News 
Working Guidelines. This proposal is the result of an industry comment 
period. The updates would allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market 
pricing information is collected for first sale, f.o.b. producers' 
plants or warehouses. The changes would be effective starting with 
Report 1, January 2016.
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