MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  August 04, 2016 (REPORT 31)                             

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.6484-3.0015           

Milk production continues to fall in the Central region. Several North 
Central area milk marketers report a stronger fall off in production than in 
previous weeks. Some processors are seeking additional loads of milk from 
out of state and regional suppliers. Spot load availability is decreasing. 
However, industry contacts do report more spot load availability at the end 
of the week flowing into the weekend. Market participants report little to 
no spot loads being offered at discounts. Spot load prices reported this 
week ranged from class to $1.50 over class. Bottlers report steady demand 
from retail and food service outlets and are preparing for educational 
institutions to reopen their doors in the upcoming weeks. Cream remains 
readily available in the Central region. Industry contacts report few 
setbacks when pursuing spot loads of cream. Some manufacturers are content 
with current cream intake and are not seeking or offering cream on the spot 
market. A few butter manufacturers in the Central region were not churning 
this week, resulting in higher volumes of cream available for spot 
purchases. Ice cream and frozen dessert processors continue to pull large 
amounts of Class II cream off the spot market and into production. Class II 
cream multiples are steady to higher on the bottom end of the range, 1.20-
1.36. The DMN National Retail Report-Dairy for July 29-August 4 noted the 
national weighted average advertised price for one gallon of milk was $2.66, up 
$0.25 from a week ago, and $0.30 higher than a year ago. The weighted average 
regional prices in the Midwest and South Central were $2.05 and $2.99, 
respectively. The DMN monthly average of the range price series for Upper 
Midwest Class II cream during July was $2.8892, compared to $2.7777 a year ago. 
The DMN monthly average of the range price series for Upper Midwest Class II 
cream during July was $2.8892, compared to $2.7777 a year ago. Producers in the 
South Central area continue to make progress with corn harvest. Roughly 85 
percent of soybeans in the area are blooming and 50 percent are setting 
pods. North Central area soybeans are making great progress as the NASS Crop 
Progress report states 93 percent of soybean acreage is at or beyond the 
blooming stage and 88 percent of this year's crop is rated good to 
excellent. 

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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