MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 14, 2016 (REPORT 28)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.6644-3.0319           

Milk production is dropping in the Central region. Milk processors are 
making adjustments as the components in milk decrease as well. A few milk 
marketers feel drops in components will not be as severe as in previous 
years. They attribute this to a mild summer in the North Central region. 
Industry contacts do not feel there is a short supply of milk in the North 
Central area nor do they anticipate a shortage in the upcoming weeks. Spot 
loads of milk are available, but some contacts feel they are harder to come 
by. Spot loads are being reported at flat to $2.50 under class. Bottlers 
report a steady demand from retail outlets. The Central region cream market 
is mixed this week. Many market participants report a tightening cream 
supply reflected by higher multiples. However, a few market participants 
shopped around and report purchasing spot loads of cream at lower multiples. 
Overall, industry contacts feel that at the end of this week, flowing into 
next week, cream will continue to tighten and multiples will climb. Several 
market participants report a more readily available supply of cream for this 
point in the season than what was anticipated based on historic seasonal 
trends. Ice cream manufacturers are running full schedules, pulling large 
amounts of cream into production. Class II cream multiples are steady to 
higher this week, 1.16 to 1.32 The DMN National Retail Report-Dairy for July 
8-14 noted the national weighted average advertised price for one gallon of 
milk was $2.32, up $0.04 from a week ago, but $0.49 lower than a year ago. 
The weighted average regional prices in the Midwest and South Central were 
$2.14 and $2.39, respectively. Corn in the North Central region is beginning 
to silk and corn conditions are rated 86 percent good to excellent. Soybeans 
are starting to set pods. Winter wheat is in good to excellent condition and 
ninety three percent of this year's crop has turned color. Winter wheat 
harvest is nearing completion in the South Central area. Corn is starting to 
dry down and producers are preparing for harvest in the most southern parts 
of the 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/mnp/da-
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