MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  August 18, 2016 (REPORT 33)                             

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.7140-3.0281           

Excessive heat in the Central region has tightened up the Midwest milk 
supply. Milk marketers report consistent calls from processors seeking spot 
loads but are rarely able to meet their requests fully. Spot loads are 
reported at $1.50 to $2.00 over class. A few market participants speculate 
that spot loads are moving at even higher premiums towards the end of the 
week and into the weekend. The pull for fluid milk into Class I is picking 
up in the Central region. Bottlers report a strong increase in orders for 
single serve containers from educational institutions. Cream slightly 
tightened this week. However, most processors seeking spot loads of cream 
report little difficulty doing so. Ice cream and frozen dessert 
manufacturers are still running full schedules, but are planning to start 
slowing down in the upcoming weeks. Cream multiples are higher at the bottom 
end of the range but marginally lower at the top end, 1.21-1.35. The DMN 
National Retail Report-Dairy for August 12-18 noted the national weighted 
average advertised price for one gallon of milk was $2.49, down $0.05 from a 
week ago, but $0.45 higher than a year ago. The weighted average regional 
prices in the Midwest and South Central were $1.79 and $2.50, respectively. 
According to NASS Crop Progress reports, 91 percent of this year's corn crop 
is in the dough stage in the South Central area. Seventy-four percent of the 
area's soybean crop is setting pods. Forty-five percent of the South Central 
area's soybean crop is currently rated as good to excellent. In the North 
Central area, 51 percent of corn has reached the dough stage. Ninety percent 
of soybeans are setting pods and 87 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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