MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 19, 2015 (REPORT 46)                           

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.5774-3.8082           

Milk production is holding steady in the North Central region, while some 
increases in production are showing up in the South Central. Weather has 
not impacted cow comfort. Class I demand is steady to higher as orders 
arrive to restock store coolers ahead of the holiday shopping weekend. 
With the block and barrel cheese markets showing uncertainty, orders for 
milk loads are lower for the week into Class III plants. Milk marketers 
indicate the recent change in demand from that sector was somewhat 
unexpected after the initial surge in orders at the beginning of the 
month. Spot milk loads are available, with a price range of $.50 under to 
$.50 over Class. A few cheese plant operators indicate they are willing to 
take in holiday milk loads next week, but sellers should anticipate being 
offered prices $1 or more below Class. Most harvesting activities are 
nearing completion in the Central region. However, recent heavy rains in 
northern Minnesota and Wisconsin muddied fields and will prevent further 
harvesting until a hard frost occurs. Winter wheat emergence is running 
ahead of the 5-year average in many areas. Cream multiples for Class II 
retreated on the bottom of the range, but held on the top of the range, 
1.24-1.32. A number of Class II operations are filling needs via cream 
loads out of the West. Ice cream plant operators variably report active to 
slower production for hard ice cream. Soft serve mix production is 
seasonally lower. According to the DMN National Retail Report-Dairy for 
the week of November 13-19, the national and Midwest weighted average 
advertised prices for one gallon of milk are, respectively, $2.45 and 
$2.35.

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