MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  February 25, 2016 (REPORT 8)                            

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4197-2.4812           


Farm milk intakes are steady to higher within the Central region. Weather 
has not slowed milk production, and on-farm feed availability is ample on 
many operations. The DMN National Retail Report-Dairy for February 19-25 
noted the national weighted average advertised price for one gallon of 
milk was $2.37, up $0.04 from a week ago, but $0.34 lower than a year ago. 
The weighted average regional prices in the Midwest and South Central 
regions were $2.50 and $2.33, respectively. Bottlers' orders are steady. 
Although milk in various packaging sizes is featured from week to week, 
most demand is being met through contracted milk volumes. Class II demand 
is unchanged to somewhat higher as production of frozen desserts, soft 
serve mix, and dips trends higher. Italian cheese manufacturers' demand 
for milk is light. Several Central Italian cheese producers report the 
Eastern snow storms curtailed demand from that sector for several weeks as 
pizza shop owners work through supplies on hand. Prices for spot loads of 
milk range from $3.00 under to flat Class. Cream supplies are readily 
available within the Central region, and end users are also receiving 
cream loads from western sellers. Class II end users are receiving both 
contract and spot loads, with multiples ranging from 1.18 - 1.21. Cream 
cheese production is stepping seasonally higher as the spring holidays 
approach. Wheat fields in the South Central area are greening up. Rain in 
parts of Texas delayed some fieldwork this week. Fieldwork is a few weeks 
away in the North Central area. The latest U.S. Drought Monitor shows most 
of the Central region has exited drought status. Small areas of Texas and 
North Dakota register as moderate drought, and those areas are surrounded 
by abnormally dry zones. The NASS Milk Production report noted January 
2016 milk production in the 23 selected states was 16.6 billion pounds, 
0.3% above a year ago. Milk cows in the 23 selected states totaled 8.63 
million head, 6,000 head more than a year ago. The following table shows 
Central states included in the report and the changes compared to a year 
ago: 
January 2016 Milk Production, (USDA-NASS)

           (Million Lb.)      % Change From
                                 1 Year Ago
  
Illinois            164              ...
Indiana             352           + 2.9
Iowa                417           + 1.0
Kansas              270              ...
Michigan            896           + 5.9
Minnesota           830           + 3.4
Ohio                469              ...
South Dakota        211           +12.2
Texas               835           - 6.7
Wisconsin         2,509           + 4.1



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