MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 07, 2016 (REPORT 27)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.7541-3.0342           

Farm level milk production in the Central region is declining as hot, humid 
weather prevails. Several milk marketers report decreases in milk 
components. Overall, spot load availability is slowly disappearing. However, 
spot loads of milk were more readily available over the holiday weekend. 
Cheese makers and butter manufacturers both welcomed additional loads of 
milk over the holiday. Spot loads are reported at flat to $3.00 under class. 
Many milk processors in the area are content with the seasonal decline in 
milk production. Numerous loads of milk are being diverted to bottling 
plants as several bottlers in the region report retail outlets discounting 
gallons of milk in the store and increasing their orders for bottled milk. 
Furthermore, a few market participants continue to see a growth in demand 
for bottled milk with a higher fat content. Cream availability increased at 
the front end of the week, carrying over from the holiday weekend. Some 
butter manufacturers report taking in additional loads of cream over the 
weekend and this week. Ice cream and frozen dessert manufacturers' cream 
intakes remain high. Industry contacts report being in the peak of seasonal 
demand and are happy with where sales are at thus far. Cream multiples are 
higher on the bottom end of the range this week, 1.18-1.30. The DMN National 
Retail Report-Dairy for July 1-7 noted the national weighted average advertised 
price for one gallon of milk was $2.28, up $0.08 from a week ago, and $0.19 
higher than a year ago. The weighted average regional prices in the Midwest and 
South Central were $1.63 and $2.50, respectively. The DMN monthly average of 
the range price series for Upper Midwest Class II cream during June was 
$2.7156, compared to $2.4688 a year ago. The NASS Dairy Products report noted 
May U.S. regular (hard) ice cream production totaled 71.9 million gallons, up 
9.8 percent from last year. January-May U.S. production totals 331.8 million 
gallons, 2.7 percent above 2015 during the same time span. May production in 
the Central region totaled 37.3 million gallons, 15.1 percent above a year ago. 
North Central area farmers are making progress on second cutting alfalfa. 
Weather conditions have been conducive to fieldwork, registering 5.8 days 
suitable for fieldwork. High winds recorded at 70 mph or higher in some 
parts of the South Central area resulted in crop damage. 


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-
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