MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  August 11, 2016 (REPORT 32)                             

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4842-3.0165           

Milk production in the Central region took a noticeable drop this week after 
several weeks of subtle decreases. Milk marketers report increased calls 
from processors seeking spot loads of milk. However, many suppliers report 
little to no spot load availability. Southern areas of the region and nation 
have commenced a new school year and the pull from those areas for fluid 
milk is strong. This, combined with hot, humid weather, has made the Central 
region milk supply tight. Spot loads are reported at class to $2.00 over 
class. Discounted loads, even at the end of the week and into the weekend, 
are no longer being offered by milk marketers. Bottlers report an increase 
in orders from educational institutions for single serve containers. As 
bottlers pick up production levels, more cream is becoming available. Unlike 
milk, industry contacts feel spot loads of cream are still available in the 
Central region, especially towards the end of the week and into the weekend. 
Several manufacturers of ice cream and frozen desserts report sufficient 
cream supply and continue to run full production schedules. Butter 
manufacturers report pulling in large amounts of cream to maintain high 
production as well. Class II cream multiples are lower at the bottom end of 
the range, but hold steady on the top, 1.12-1.36. The DMN National Retail 
Report-Dairy for August 5-11 noted the national weighted average advertised 
price for one gallon of milk was $2.54, down $0.12 from a week ago, but 
$0.04 higher than a year ago. The weighted average regional prices in the 
Midwest and South Central were $2.48 and $2.54, respectively. The NASS Dairy 
Products report noted June U.S. regular (hard) ice cream production totaled 
75.6 million gallons, up 4.2 percent from last year. January-June U.S. 
production totals 407.4 million gallons, 3.0 percent above 2015 during the 
same time span. June production in the Central region totaled 40.4 million 
gallons, 5.3 percent above a year ago. The Southernmost areas of the region 
are experiencing moderate to excessively dry soil moisture conditions. Corn, 
soybean, and sorghum harvests are all underway in the area. In the North 
Central area, 34 percent of this year's corn crop has reached the dough 
stage and 88 percent of corn is rated as good to excellent condition, 
according to NASS Crop Progress report. Eighty-two percent of this year's 
soybean crop has set pods. 


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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