MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 19, 2016 (REPORT 20)                              

The cool weather has been very conducive to high production and components 
here in the North Central area. Farm level milk production shows little to 
no signs of slowing. Warm temperatures in the South Central area are 
affecting cow comfort. Milk production continues to climb, but at smaller 
increments. Classes have ended for the majority of universities in the 
region. Bottlers have reported a noticeable drop in orders because of this. 
They are anticipating even stronger declines as the school year for other 
educational institutions comes to an end. Spot loads of milk can be found at 
$2.00 to $4.00 under class. In the North Central area, cream demand is flat. 
There is a plentiful supply of cream spot loads on the market. Until warmer 
weather arrives, manufacturers do not expect the cream supply to tighten. 
However, a handful of manufacturers have seen a small uptick in demand for 
cream. Industry participants speculate this is because ice cream 
manufacturers are preparing for warmer temperatures. Hot temperatures in the 
South Central area may have manufacturers experiencing slight increases in 
cream demand. Overall, manufacturers are optimistic for ice cream demand as 
schools let out and vacation season approaches. Multiples for cream are 
steady to lower this week, 1.10 to 1.21. The DMN National Retail Report-
Dairy for May 13-19 noted the national weighted average advertised price for 
one gallon of milk was $2.27, down $0.02 from a week ago, and $0.45 lower 
than a year ago. The weighted average regional prices in the Midwest and 
South Central regions were $2.20 and $2.48, respectively. Farmers have made 
great progress planting corn in the South Central area. In some cases, corn 
planting is complete. Over half of this year's planned soybean crop has been 
planted. Below normal temperatures in the North Central area had farmers 
concerned about freeze damage to crops already in the ground. Famers have 
made significant progress with planting for a handful of crops and are 
hoping for warmer temperatures to support growth. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2523-2.4775           


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-
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