MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. May 26, 2016 (REPORT 21) SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.2156-2.4823 Temperatures are rising across the Central region, but farm level milk production continues to be strong. Many states in the Central region are at the peak of spring flush, reporting plentiful milk available on the spot market. The upcoming holiday weekend has milk processors working hard to make sure weekend milk intakes are processed. Spot loads are being reported at $1.25-$4.00 under class. However, spot loads for the end of the week and weekend are anticipated to move at larger discounts. Several milk processing facilities faced production difficulties this week. As these facilities prepare for the holiday weekend, these setbacks add additional orchestrating of load delivery at the end of the week. Some manufacturers will continue to run full schedules through the holiday weekend to ensure all milk intakes are processed. Bottlers report slowing orders as education institutions close for the summer. Milk marketers noted lighter interest in bottling but stronger interest for Class II cream going into ice cream. Warming temperatures are spurring some climb in ice cream demand. However, this growth in interest is not large enough just yet to tighten cream supplies in the Midwest. Multiples for cream are steady to lower this week, 1.08 to 1.21. Cream handlers without churning abilities are moving cream at lower price points out of necessity this holiday weekend. The DMN National Retail Report-Dairy for May 20-26 noted the national weighted average advertised price for one gallon of milk was $2.34, up $0.07 from a week ago, but $0.39 lower than a year ago. The weighted average regional prices in the Midwest and South Central were $1.73 and $2.47, respectively. The NASS Milk Production report noted April 2016 milk production in the 23 selected states was 16.8 billion pounds, 1.2% above a year ago. Milk cows in the 23 selected states totaled 8.65 million head, 21,000 head more than a year ago. The following table shows Central states included in the report and the monthly milk production changes compared to a year ago: April 2016 Milk Production, (USDA-NASS) (Million Lb.)* % Change From 1 Year Ago Illinois 168 + 0.6 Indiana 350 + 3.2 Iowa 425 + 3.4 Kansas 279 - 0.4 Michigan 903 + 6.5 Minnesota 821 + 2.7 Ohio 464 ... South Dakota 210 +10.5 Texas 910 + 1.6 Wisconsin 2,507 + 4.6 North Central area famers are wrapping up corn and oat planting. Soybean planting made great progress, with over half of this year's planned crop in the ground. Some South Central area farmers have completed their first cutting of alfalfa hay. Pasture conditions continue to improve across the South Central area. 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