MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. August 25, 2016 (REPORT 34) SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.6820-2.9923 Temperature relief helped level off decreases in farm level milk output this week in the Central region. Temperatures overnight dipped down into the 50s in the North Central area, aiding cow comfort. Many processors note steady intakes this week. However, spot loads of milk continue to be difficult to come by. Spot loads are reported at $1.50 to $2.00 over Class. Bottlers are busy filling orders from schools as many educational institutions in the Central region reopen their doors. North Central milk marketers are turning to other areas of the region for additional milk to meet demands. However, industry contacts do not anticipate this tightness in the market to be long term. They speculate production will begin to climb back up following Labor Day. Increases in bottling orders have contributed to an available cream supply in the Central region. A few manufacturers do feel a slight tightness in the market. After weeks of having additional loads of cream to sell throughout the week, these manufacturers report needing their entire cream supply for processing purposes. However, contacts anticipate the supply to increase as they approach the Labor Day weekend. Ice cream and frozen dessert production is mostly steady this week. Manufacturers anticipate a more relaxed production pace in the coming weeks as the peak of ice cream season has come and gone. Cream multiples are steady this week, 1.21-1.35. The DMN National Retail Report-Dairy for August 19-25 noted the national weighted average advertised price for one gallon of milk was $2.58, up $0.09 from a week ago, and $0.01 higher than a year ago. The weighted average regional prices in the Midwest and South Central were $1.68 and $2.99, respectively. The NASS Milk Production report noted July 2016 milk production in the 23 selected states was 16.8 billion pounds, 1.4% above a year ago. Milk cows in the 23 selected states totaled 8.65 million head, 19,000 head more than a year ago. The following table shows Central states included in the report and the monthly milk production and changes compared to a year ago: June 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 156 + 0.6 Indiana 340 + 1.5 Iowa 414 + 2.5 Kansas 271 + 2.7 Michigan 928 + 4.5 Minnesota 822 + 1.5 Ohio 473 + 0.4 South Dakota 215 + 5.9 Texas 893 + 4.4 Wisconsin 2,562 + 2.1 According to the NASS Crop Progress report, 70 percent of corn in the South Central area is in the dented stage and 47 percent of this year's crop has been harvested. South Central farmers have begun harvesting soybeans. In the North Central area, 25 percent of corn is in the dented stage and soybean leaves are beginning to turn color. 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- home