MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. July 28, 2016 (REPORT 30) SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.7069-3.1198 Milk production in the Central region is trending downward as summer advances. The South Central area has witnessed large week to week declines as continuing hot daytime temperatures add to the discomfort of dairy herds. North Central dairy operators report milk production is tapering off after the recent hot spell, but cows seem more comfortable since daytime temperatures starting ratcheting back to the mid-80s. Class I sales crept higher into bottling plants, as some areas start to refill the school pipeline ahead of the first day of instruction. Bottlers anticipate orders for single serve containers will build over the next few weeks until all educational institutions active for the 2016 fall semester. Interest in spot milk loads is moderate and most active from Class III manufacturers. Prices held steady from last week, ranging from class to $2.00 under class. Cream loads are still surprisingly available considering the seasonal decline in farm milk production. Most end users are not reporting any issues with finding cream. The Central region is benefiting from some the availability of cream out of the West. Central cream multiples are unchanged to higher, 1.18 - 1.36. The DMN National Retail Report-Dairy for July 22-28 noted the national weighted average advertised price for one gallon of milk was $2.41, down $0.31 from a week ago, and $0.08 lower than a year ago. The weighted average regional prices in the Midwest and South Central were $1.93 and $2.94, respectively. The NASS Milk Production report noted June 2016 milk production in the 23 selected states was 16.7 billion pounds, 1.6% above a year ago. Milk cows in the 23 selected states totaled 8.65 million head, 17,000 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: June 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 160 + 0.6 Indiana 337 + 2.1 Kansas 268 + 3.5 Iowa 413 + 2.0 Michigan 918 + 5.4 Minnesota 813 + 2.1 Ohio 466 + 1.3 South Dakota 210 + 6.6 Texas 880 + 3.8 Wisconsin 2,543 + 3.8 1100CT Amy.L.Schmitz@ams.usda.gov 608.557.7004; Janet.Linder@ams.usda.gov 608.557.7003 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