MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 03, 2016 (REPORT 9)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4312-2.5528           

Farm milk production is following seasonal trends throughout the Central 
region. Steady upticks in on-farm pickup volumes are occurring, especially 
in the South Central area. North Central haulers report regular pickups 
are also inching higher. Bottler interest is steady to lower throughout 
the region as school districts enter/exit spring break status. Also, ACT 
testing for 9-12 grades is curtailing school lunch program attendance and 
the need for individual serving milk packages. The DMN National Retail 
Report-Dairy for February 26-March 3 noted the national weighted average 
advertised price for one gallon of milk was $2.52, up $0.15 from a week 
ago. The weighted average regional prices in the Midwest and South Central 
regions were $2.84 and $2.22, respectively. Sales into yogurt/dip/ice 
cream/frozen dessert facilities are steady to slightly higher. Dip and 
sauce/dressing mix production rates are seasonally higher to meet holiday 
shopping needs at the end of the month. However, some ice cream/frozen 
dessert manufacturers indicate they are in no hurry to build up inventory 
as butterfat prices trend lower. Also, there is little concern about a 
shortage of butterfat in the near term. Thus, outside of contracts, Class 
II cream buying is moderate. Class III cream interest is steady to higher 
as the holidays approach and manufacturers work toward fulfilling orders 
for the end of the month. Cream multiples for Class II end uses firmed, 
ranging from 1.20 to 1.26. Spot milk prices are $2.50 under to flat Class. 
In Texas and Oklahoma, winter wheat fields are greening up. However, 
recent rain in some areas has kept fieldwork opportunities to a minimum. 


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