MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 17, 2016 (REPORT 11)                              

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2782-2.4564           

Throughout the Central region, milk intakes are steadily increasing from 
week to week. Southern area milk handlers note bigger steps up in 
production compared to Northern milk handlers. As the flush approaches, 
though, there is growing concern among marketers and cooperatives 
regarding maintaining markets for potentially larger volumes of finished 
products. There has been some discussion about notifications to producers 
regarding changes in how milk payments will be handled for volumes above 
year ago marketing. Bottled milk demand is uneven from location to 
location as school districts cycle through week long shutdown periods. 
However, the overall demand for bottled milk light to moderate. Most 
bottlers indicate the overall sales trend is downward. Milk spot loads and 
condensed skim volumes are readily available throughout the region. 
Confirmed spot milk sale prices range from $3.50 under to flat Class. 
However a few milk marketers indicate they received bids of $5-$8 under 
Class. Milk marketers indicate cheese manufacturers have interest in spot 
milk loads, as long as prices are at a discount to class. Handlers in the 
North Central area indicate manufacturing space and time are a premium. 
Wait times for unloading are growing at some plants as intake volumes 
increase seasonally. Recent reports indicate that milk discards are 
happening, but the industry is trying to keep those instances to a 
minimum. The DMN National Retail Report-Dairy for March 11-17 noted the 
national weighted average advertised price for one gallon of milk was 
$2.54, up $0.16 from a week ago. The weighted average regional prices in 
the Midwest and South Central regions were $1.90 and $3.28, respectively. 
Cream multiples for Class II end uses shifted lower, ranging from 1.15 to 
1.24. Turbulent weather moved through the Central region during the last 
week. Some areas of Texas received over 4 inches of rain. Northern rain 
totals were lower, generally below 2 inches in total. The net effect is 
fields are wet and field work is delayed. Winter wheat and established 
alfalfa fields, though, are benefiting from the early season moisture. 

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/map/da-home