MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  April 28, 2016 (REPORT 17)                              

Across the Central region milk production is at spring flush levels. Bottling 
demand is steady although plants are preparing for a slow down as educational 
institutions approach the end of the school year. Multiples for Class II cream 
are steady, 1.16-1.24. Cream is readily available and is also being brought in 
from the East and West regions. Demand for Class II cream to go into ice cream 
production is starting to emerge. Milk spot load availability is steady to 
higher and is reported at $3.00 to $5.00 under Class. Some manufacturers are 
contracting loads out to guarantee placement and price. There has been mention 
of milk disposal in the Central region as plant operators run up against 
holding times on some loads. Processors are separating the cream and trying to 
find responsible outlets for the remaining skim solids, such as digesters. 
Industry contacts are hopeful that plans for several new plants in the region 
will help alleviate this seasonal surplus in the future. Dairy farmers dealing 
with quality issues are having to find new homes for their milk while they 
address these issues. The DMN National Retail Report-Dairy for April 22-28 
noted the national weighted average advertised price for one gallon of milk was 
$2.35, down $0.06 from a week ago, and $0.56 lower than a year ago. The 
weighted average regional prices in the Midwest and South Central regions were 
$2.38 and $2.94, respectively. Weather was favorable this week in the North 
Central area, allowing many farmers to make great headway in corn planting. 
Where conditions are favorable, farmers have also begun planting soybeans. In 
the far South Central, soybeans and corn plants have started to emerge. 


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3780-2.5420           


1100CT Amy.L.Schmitz@ams.usda.gov 608.557.7004
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