MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 12, 2016 (REPORT 19)                              


Weather has been conducive to high farm level milk outputs in the North 
Central area. However, milk production is beginning to slow in the South 
Central area as temperatures continue to rise. Large amounts of milk are 
being trucked throughout the region to find a processing plant able to take 
on extra loads. There have been reports of some Central milk landing in the 
Western region for little to no cost over transportation. Some processors 
are at full capacity while others are welcoming extra loads of milk as 
resources allow. Regardless, manufacturers are running full schedules to 
manage milk intakes. Bottling demand is on a slow decline. Many universities 
have closed for the school year and other educational institutions are soon 
to follow. Spot prices are being reported at class price to $4.00 under 
class. Some manufacturers report minor strengthening in cream interest in 
the South Central area. However, the majority of the Midwest has not seen an 
increase in cream demand just yet. Overall, there is still plentiful cream 
in the market and industry participants wait for a heat wave to spike 
interest. Multiples for Class II cream are steady to lower this week, 1.15-
1.22. The DMN National Retail Report-Dairy for May 6-12 noted the national 
weighted average advertised price for one gallon of milk was $2.29, up $0.17 
from a week ago, but $0.33 lower than a year ago. The weighted average regional 
prices in the Midwest and South Central regions were $1.88 and $2.37, 
respectively. The NASS Dairy Products report noted March U.S. regular (hard) 
ice cream production totaled 70.5 million gallons, down 1.8 percent from last 
year. January-March U.S. production totals 188 million gallons, 0.4 percent 
below 2015 during the same time span. March production in the Central region 
totaled 37.3 million gallons, 8 percent less than a year ago. The weekly Cow 
Slaughter under Federal Inspection report shows U.S. dairy cow slaughter for 
the week ending April 16, at 54,600 head, 300 head more than the comparable 
week a year ago. Farmers have made considerable headway planting corn across 
the North Central area. Winter wheat is making great progress in the South 
Central area and some farmers have begun harvest. Pastureland across the South 
Central area is in good condition. 


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3495-2.4925  


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