MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  February 11, 2016 (REPORT 6)                            

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.5317-2.6390           

Central milk production continues its steady march higher from week to 
week. Handlers report there were some pockets of milk production holding 
steady, especially within areas hit by single digit temperatures, but the 
overall trend is toward seasonally higher farm milk pickups. Within the 
region, though, various plant operators are experiencing lower and higher 
intake volumes as dairy operators switch receiving plants. This is causing 
some additional shifting of milk to make up volumes in those processing 
plants losing some historical shippers. With generally clear weather 
throughout the week, the region did not experience any weather related 
closures or transportation delays. Bottled milk sales are steady to 
somewhat lower as school districts adjust orders to account for the 
upcoming holiday-shortened school week. In the DMN National Retail Report-
Dairy for the week of February 5-11, the national average price for gallons 
of milk was $2.31, $0.68 lower than one year ago. In the Midwest and South 
Central, the current weekly average prices were $1.88 and $2.24, 
respectively. Demand from cheese plant operators is steady to lower. With 
Super Bowl related sales completed, cheese sellers indicate they have a 
long stretch ahead of them to get to grilling season. Some manufacturers 
indicate they want to moderate cheese inventories carefully through Q1-Q2, 
which starts with modifying milk intakes via pushback on milk suppliers or 
generating f.o.b. spot sales. Spot milk prices range from $3.00 under to 
$1.50 over Class, with various delivery timeframes within the week. Cream 
demand is steady into Class II end uses, but lighter into Class IV. Ice 
cream manufacturers are pulling early in the season cream volumes. Butter 
plant operators at some locations are reluctant to take on additional 
cream as internal cream supplies are ample. Cream multiples are steady to 
lower, ranging from 1.18 to 1.23. 



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