MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 24, 2016 (REPORT 12)                              

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2299-2.4044           

In the Central region, farm level milk production is steady to higher, close to 
the spring flush. The warmer weather is aiding to dairy herd comfort. Class I 
sales are mixed as most K-12 schools are closed during this week. However, 
bottled milk requests from retailers are active as the spring holiday 
approaches. Sale prices for spot milk loads are steady, ranging from $3.50 to 
flat Class. This week, one of the largest grocery stores in the country, 
announced that it will construct a dairy processing plant in the Central region 
during 2017. This plant will supply several hundred of its stores with private 
label fluid milk. According to some industry participants, this will result in 
ending current arrangements with other processors to supply the milk for retail 
sale in the store. The DMN National Retail Report-Dairy for March 18-24 noted 
the national weighted average advertised price for one gallon of milk is $2.18, 
$1.99 in the Midwest and $2.16 in the South Central region. Cream supplies are 
readily available in the region. Heavy cream volumes are moving into butter 
churning. Demand from ice cream makers is starting to take off. This week, 
cream multiples are steady, ranging from 1.15 to 1.24. The NASS Milk Production 
report noted February 2016 milk production in the 23 selected states was 15.8 
billion pounds, 4.6% above a year ago. Milk cows in the 23 selected states 
totaled 8.63 million head, 8,000 head more than a year ago. The following table 
shows Central states included in the report and the changes compared to a year 
ago:  


February 2016 Milk Production, (USDA-NASS)

           (Million Lb.)*      % Change From
                                 1 Year Ago
  
Illinois            156           + 3.3
Indiana             334           + 8.1
Iowa                393           + 4.8
Kansas              259           + 4.0
Michigan            855           +11.6
Minnesota           768           + 5.1
Ohio                440           + 4.5
South Dakota        197           +14.5
Texas               826           + 1.5
Wisconsin         2,381           + 8.9
*Unadjusted


1100CT Angel.Teran@ams.usda.gov 608.557.7011
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-
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