MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 21, 2016 (REPORT 29)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.6951-3.1049           

Milk production continues to drop off in the Central region. Components are 
down as well, leaving many milk processors making production adjustments. 
Spot loads are increasingly difficult to come by. However, with increased 
efforts, industry contacts report being able to find spot loads when they 
need them. Spot loads were reported at class to $2.00 under class. Many milk 
marketers anticipate this situation will tighten at the end of this week and 
into the weekend due to the weather forecast predicting the highest 
temperatures the Central region has faced thus far in the season. Bottlers 
report steady demand from retail and foodservice outlets. Cream is still 
readily available in the Central region. Many contacts report little 
difficulty finding spot loads of cream. A few market participants do feel 
the cream market is tightening. Ice cream and frozen dessert manufacturers 
report strong sales. Some ice cream manufacturers are stepping up production 
and are pulling more cream into production. Market participants anticipate 
this market to tighten when the forecasted high temperatures hit. Class II 
cream multiples are higher at the bottom end of the range but hold steady on 
the top end: 1.18-1.32. The DMN National Retail Report-Dairy for July 15-21 
noted the national weighted average advertised price for one gallon of milk 
was $2.72, up $0.40 from a week ago, but $0.26 lower than a year ago. The 
weighted average regional prices in the Midwest and South Central were $2.25 
and $3.10, respectively. Several parts of the South Central area are facing 
dry soil moisture conditions. Producers are nearing completion of winter 
wheat harvest. Corn harvest is active and soybeans are blooming and setting 
pods. Corn is beginning to silk and tassel in the North Central area. A 
large portion of this year's soybean crop is blooming and, in some areas, 
has begun to set pods. Oat harvest is beginning in some parts of the North 
Central area. 

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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