MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  September 15, 2016 (REPORT 37)                          

Milk production throughout the Central region is mostly steady but milk volumes 
coming into the region from out-of-region sources are mostly lower. Protein and 
butterfat milk components are rising. Milk handlers note farm milk pickups are 
trending higher and there is evidence of expansions taking place. Feed 
availability within the region is ample to support herd growth. Sales into 
Class I are mixed from area to area. Southeast bottlers are actively drawing on 
milk supplies in the Central region to meet fluid milk demand. Other processors 
report the demand to send milk into bottling is steady to somewhat lower. The 
DMN National Retail Report-Dairy for September 9-15 noted the national weighted 
average advertised price for one gallon of milk was $2.82, up $0.02 from a week 
ago, and $0.37 higher than a year ago. The weighted average regional prices in 
the Midwest and South Central and changes from the previous week are 
$3.65(+$1.66) and $2.71(-$.11), respectively. The draw on milk supplies to 
refill the school pipeline stabilized as of this week. Class II sales are 
generally lower as frozen dessert manufacturers realign production schedules 
with fall demand. Some production lines of fall holiday novelties are starting. 
Cream multiples are lower, 1.18-1.28. A handful of manufacturers are beginning 
discussions on 2017 milk/cream supply contracts. Spot milk load availability is 
limited. Milk marketers indicate inquiries are active with end users looking 
for spot loads of milk to support active production schedules at cheese plants. 
Spot milk prices range from $1.00 to $3.00 over class. Periods of rainstorms 
decreased the days available for fieldwork in much of the Central region this 
week. Corn silage harvesting is ongoing, as weather permits. Far South Central 
operators report they are taking a sixth cutting of alfalfa while North Central 
producers started winter wheat planting, especially as soybean fields mature. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4013-2.6048           

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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