MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  December 10, 2015 (REPORT 49)                           

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.4538-3.7442           

Farm milk production trends vary from north to south in the Central 
region, with northern production holding steady with the help of mild 
December weather. South Central production is uneven as recent rain storms 
muddied some cow holding areas last week, but conditions are improving and 
milk intakes are increasing slightly. Fluid milk demand is steady to 
higher for the week. Bottlers indicate several grocery outlets are running 
specials coupling minimum purchase amounts with gallons of milk at reduced 
prices. Spot milk loads are available, but interest is limited. Milk 
marketers report Class II and III plant operators are unwilling to commit 
to taking loads through the end of the month. Instead, they prefer weekly 
or daily adjustments to their milk volume needs. Cheddar/colby cheese 
plant managers with active sales through the end of the month are 
generally interested in spot milk loads. However, some mozzarella plant 
operators indicate cheese orders are trending lower through the end of the 
month and they are shying away from processing higher volumes of milk. 
Spot milk prices range from flat Class to $1 under. Interest in placing 
milk volumes ahead of the upcoming holiday weekends is increasing. Buyers 
are concerned about paying too much for both the nonfat solids and the 
butterfat, especially as the butter market has started the long awaited 
preholiday decline. With that in mind, buyers are offering prices at a 
discount to Class. Spot cream availability is steady to higher both within 
the Central region and from West and East region sellers offering to 
Central buyers/end users. Interest is steady to lower as butter and ice 
cream operators are less interested in rebuilding inventories. Some Class 
II holiday related production, such as heavy cream and aerated cream, is 
ongoing for deliveries scheduled just ahead of the holidays. Central cream 
multiples range from 1.19 to 1.29. According to the DMN National Retail 
Report-Dairy for the week of December 4-10, the national and Midwest 
weighted average advertised prices for one gallon of milk are, 
respectively, $2.43 and $2.07.

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