MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  June 09, 2016 (REPORT 23)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4618-2.7122           

Milk production in the Central region is strong. The North Central area has 
yet to face weather hot and humid enough to affect cow comfort and drop 
production. Industry contacts in this area feel North Central milk 
production has peaked, but the cool weather has prolonged the flush. Pockets 
of the South Central area are hot enough to drop farm level milk production, 
but milk is still readily available. Spot loads are actively moving both in 
and out of the region and can be found at $1.25 to $4.00 under Class. A 
handful of spot loads moved at $5.00 to $6.00 under class when manufacturers 
found themselves in a pinch. The majority of Midwest schools have closed 
their doors for the summer. Bottlers acknowledge this and note a 
considerable decrease in orders from educational institutions. However, 
orders from other outlets remain strong. Cream in the Midwest is tightening. 
Ice cream makers are stepping up production and taking more spot loads of 
cream. Market participants mention that cream is available on the spot 
market, however, spot loads are not being offered at generous discounts like 
in recent weeks. A few contacts mentioned a handful of manufacturers being 
in a bind and paying hefty premiums for cream spot loads. Multiples for 
cream are higher this week, 1.18 to 1.30. The DMN National Retail Report-
Dairy for June 3-9 noted the national weighted average advertised price for one 
gallon of milk was $2.44, down $0.49 from a week ago, but $0.17 higher than a 
year ago. The weighted average regional prices in the Midwest and South Central 
were $2.07 and $2.32, respectively. The NASS Dairy Products report noted March 
U.S. regular (hard) ice cream production totaled 71.2 million gallons, up 3.5 
percent from last year. January-April U.S. production totals 259.7 million 
gallons, 0.9 percent above 2015 during the same time span. April production in 
the Central region totaled 37.1 million gallons, 0.1 percent above a year ago. 
The DMN monthly average of the range price series for Upper Midwest Class II 
cream during May was $2.3956, compared to $2.3302 a year ago. Rainfall and 
scattered thunderstorms stalled fieldwork for North Central area farmers. 
The large majority of this years planned soybean crop is in the ground. Corn 
is emerging and over 80 percent of this year's crop condition is currently 
reported to be good to excellent. Parts of the South Central area 
experienced flooding, washing away some crops and delaying further planting 
of this years planned crop.  
                                                                                                                                                                                                                                                                                                                                                                                                                                

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: