MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 5, 2016 (REPORT 18)                              


Farm level milk production continues to increase in the North Central area. 
Some parts of the South Central area are hovering near the peak. One Midwest 
plant shut down this week for maintenance, requiring more trucking and 
processing elsewhere in the region. This bountiful supply of milk is keeping 
processors working diligently to make sure all loads of milk find a home. Spot 
loads are being reported at $3.00 to $4.00 under Class. Bottling is starting to 
see a slow down as colleges wrap up their last few days of classes for the 
year. There is an abundant supply of cream available. Multiples for Class II 
cream are steady to lower this week, 1.16-1.22. Class II cream sales are 
unsteady right now as the weather has yet to level out in the higher 
temperatures for most of the region. Industry participants are hopeful for some 
hot weather to help boost ice cream sales. However, in the South Central 
region, warmer temperatures are helping support the increase in ice cream 
production. Industry contacts mentioned a few South American countries are 
currently facing grain issues that may start to affect global feed prices for 
dairy farmers. The DMN monthly average of the range price series for Upper 
Midwest Class II cream during April was $2.4293, compared to $2.1587 a year 
ago. The DMN National Retail Report-Dairy for April 29-May 5 noted the national 
weighted average advertised price for one gallon of milk was $2.12, down $0.23 
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 $1.85 and $2.50, 
respectively. It was a cool, wet week across the Central region, delaying 
fieldwork in many of the Midwest states. Winter wheat is performing well in the 
North Central area. Corn is emerging and soybeans are being planted in the 
South Central area. 


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3873-2.5108           


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