MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. June 23, 2016 (REPORT 25) SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.7264-3.1423 Some Midwest milk marketers report a small retreat in milk production this week. However, milk intakes remain high. Some manufacturers feel the availability of spot loads of milk is starting to disappear. A few market participants speculate difficulty finding spot loads will only affect those seeking large quantities. Spot loads were reported at flat to $3.00 under class. Industry contacts anticipate discounts to decrease in the upcoming weeks. Bottling demand is steady from retail outlets. Orders for bottled 2 percent and whole milk have surpassed 1 percent and skim milk for several manufacturers in the recent weeks. Cream demand is high. Ice cream manufacturers are pulling in large amounts of cream, as they approach their seasonal production peak. Spot loads of cream are more difficult to come by, especially at the beginning of the week. Manufacturers seeking spot loads of cream report finding better spot load availability at the end of the week. Cream multiples are trending higher this week on the top end of the range, 1.18-1.36. The DMN National Retail Report-Dairy for June 17-23 noted the national weighted average advertised price for one gallon of milk was $2.51, up $0.19 from a week ago, but $0.01 lower than a year ago. The weighted average regional prices in the Midwest and South Central were $1.90 and $3.21, respectively. The NASS Milk Production report noted May 2016 milk production in the 23 selected states was 17.5 billion pounds, 1.2% above a year ago. Milk cows in the 23 selected states totaled 8.64 million head, 11,000 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: May 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 171 - 0.6 Indiana 362 + 2.0 Kansas 284 + 0.4 Iowa 437 + 2.3 Michigan 955 + 6.9 Minnesota 844 + 2.2 Ohio 487 + 0.4 South Dakota 219 + 9.5 Texas 925 + 1.4 Wisconsin 2,635 + 4.2 Upwards of ninety percent of this year's expected soybean acres have emerged in the North Central area. Corn condition is 86 percent good to excellent. Eighty- two percent of topsoil moisture was rated adequate. Winter wheat harvest is in full swing across the South Central area. However, rain and wet fields has delayed harvest in some locations. 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/mnp/da- home