MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  June 02, 2016 (REPORT 22)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2421-2.5327           


The holiday weekend left some milk marketers in a scramble to find 
processing facilities able to take on additional milk. Some of this load 
shuffling carried into the beginning of this week, resulting in very active 
milk processing. Farm level milk production is still high in the North 
Central area. Other areas of the region are heating up and seeing decreases 
in milk production. Midwest milk handlers are turning to Southwest area 
processors to take on additional loads out of the Midwest. These loads, 
however, are moving at discounts. Spot loads are being reported at $2.00 to 
$4.00 under class. A few spot loads moved at $5.00 under class when 
processors found themselves in a pinch for time and space. Bottling interest 
is light as summer approaches and orders from educational institutions 
diminish. Some bottlers are now turning loads back to manufacturers. Cream 
is plentiful in the Central region. Spot loads are readily available. Demand 
for Class II cream going into ice cream is mixed. A few manufacturers report 
seasonally anticipated upticks in orders. Other contacts have not felt the 
demand from ice cream makers just yet. Overall, industry participants 
patiently await warmer weather and growth in ice cream sales to tighten a 
mixed cream market. Multiples for cream are steady to lower this week, 1.08 
to 1.22. The DMN National Retail Report-Dairy for May 27-June 2 noted the 
national weighted average advertised price for one gallon of milk was $2.93, up 
$0.59 from a week ago, and $0.40 higher than a year ago. The weighted average 
regional prices in the Midwest and South Central were $1.99 and $3.29, 
respectively. Scattered thunderstorms and warm temperatures aided crop 
growth in the North Central area. Corn planting is wrapping up. Farmers are 
making great progress in soybean planting. Certain parts of the South 
Central area experienced severe hail storms, damaging some row crops. Soil 
moisture ranges from abnormally dry to extremely moist depending on the area 
in the Central region.   


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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