MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  September 08, 2016 (REPORT 36)                          

Milk production in the southern area of the Central region is rebuilding 
incrementally as summer heat dissipates. However, milk quality issues are 
mounting as heavy rainstorms hit dry lot-housed dairy herds across the southern 
band of states. North Central area operations are benefiting from comfortable 
weather and abundant feed. Milk production is mostly steady. Overall demand 
into bottlers is mixed. Milk clearing into bottlers is lower for some suppliers 
but inching higher for other marketers. Milk loads clearing from the Central 
region into the Southeast continue to ease the supply deficits there, but limit 
availability of spot loads in the Central. Cheese makers are still looking for 
spot loads of milk on a weekly basis, but some have resorted to using NDM for 
fortification due to the shortfalls in milk supply and disadvantageous pricing 
on spot milk. Prices for spot loads range from $.75 to $3.00 over class. Cream 
was long throughout the region over the holiday week. A few churn operators ran 
longer schedules to clear cream loads that could have been sold if buyers 
showed interest. The expected increase in demand from some Class III 
manufacturers for cream cheese has yet to emerge. Some cream sellers speculate 
that imports of anhydrous milkfat are tempering demand for regional cream 
loads. Cream multiples are unchanged to lower, 1.22-1.32. The DMN National 
Retail Report-Dairy for September 2-8 noted the national weighted average 
advertised price for one gallon of milk was $2.80, up $0.43 from a week ago, 
and $0.34 higher than a year ago. The weighted average regional prices in the 
Midwest and South Central, and changes from the previous week are $1.99(+$.03) 
and $2.82(-$.40), respectively. Corn maturity is advancing, with percentage of 
total crop maturity having a wide range within the region. Corn silage harvest 
is underway. A few producers in the north Central are taking fourth cuttings of 
alfalfa as spring and summer weather allowed for earlier and/or more frequent 
cuttings.  

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.5285-2.7357           

1100CT 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-
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