MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. January 28, 2016 (REPORT 4) **UPDATED SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.5297-2.6798 South Central milk production is trending gradually higher at conventional operations as the calendar advances and weather conditions improve. Although there is less milk in the area, because of recent dairy cow losses, many plants are once again receiving close-to-normal milk volumes for processing. Milk marketers report the widespread cooperation within the area by handlers and processors during this period of adjustment has been crucial to helping dairy operations and manufacturers remain active. In the North Central region, farm milk intakes are mixed. Some operations following grass-fed protocols have synchronized the dry cow period, and thus, are shipping little to no milk. Conventional operations report milk is trending higher along with steady advances in component levels. Some Central cheese plant operators reported they've lost some pizza cheese sales recently due to sluggish demand along the East coast. This is related to the recent snowstorm in the east residents were encouraged to stay off the roads. At this point, the interest of these cheese plant operators in spot milk volumes is limited to loads carrying below Class pricing. Other Class III operators indicate cheese demand for specialty cheese is steady. At the beginning of the week, milk volumes available outside of contracts was limited. However, some plant maintenance projects and a breakdown freed up milk volumes during the week. Prices on spot loads of milk range from $2.50 under to $.50 over Class. Bottling demand is unchanged. Sales into Class II operations are active as this week represents the last production runs for orders of dips/sour cream-type products prior to the Super Bowl. The range of multiples for Central region Class II cream narrowed, 1.18-1.25. The NASS Milk Production report noted December milk production in the 23 selected states was 16.4 billion pounds, 0.7% above a year ago. Milk cows in the 23 selected states totaled 8.64 million head, 29,000 head more than a year ago. The following table shows Central states included in the report and the changes compared to a year ago: **December 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 162 + 2.5 Indiana 348 + 3.6 Iowa 411 + 2.0 Kansas 263 - 1.5 Michigan 876 + 4.8 Minnesota 807 + 2.9 Ohio 458 ... South Dakota 209 +13.0 Texas 853 - 3.0 Wisconsin 2,477 + 4.8 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