MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 05, 2015 (REPORT 44)                           

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.2013-3.4637           

Milk production on farms in the North Central region is steady, supported 
by above normal November temperatures. South Central producers indicate 
milk production is steady to building incrementally as fall calving 
advances. Although milk prices are lower than one year ago, many Central 
dairy operators are interested in phasing in herd expansions over the next 
year. Weekly demand from Class I buyers is active, with some notable 
increases on retailers' orders in conjunction with bottled milk in-store 
specials. Some manufacturers have also started production of holiday 
specialty drinks, such as flavored milk and eggnog. Milk marketers 
indicate that demand has picked up unexpectedly from a few cheese 
manufacturers who had earlier indicated little interest in buying spot 
milk loads. Market participants relate that to some last minute cheese 
orders emerging. Prices on spot milk loads are mixed, ranging from $0.50 
under to $1.00 over Class, depending on timing and milk characteristics. 
Various plant operators and milk marketers are also jockeying for 
processing space during the upcoming extended holiday weekends. Class II 
production is taking additional cream out of available regional supplies 
for sour and aerated cream, as well as ice cream, as seasonal flavor 
production advances. Cream multiples for Class II are steady on the 
bottom, but decreased on the top of the range, 1.22-1.32. According to the 
DMN National Retail Report-Dairy for the week of October 30-November 5, 
the national and Midwest weighted average advertised price for one gallon 
of milk is $2.14.

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