MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. September 22, 2016 (REPORT 38) South Central milk production bobbled in some areas as rainstorms delivered challenging conditions to operators with dry lot housing. North Central operations fared a little better, despite frequent rainstorms, as most herds are housed inside. Farm milk pickup volumes are steady. No disruptions are reported for transportation this week. Demand for spot milk loads is active, but price remains a factor. Cheese plant operators are scouring the region looking for milk loads, but pricing and transportation costs are stalling some sales. Spot milk prices range from $1.25-$3.00 over class. Fluid milk demand is mixed throughout the region. A few plant operators indicated orders are lower as bottlers adjust for weekly features, but others are sending additional loads to their Class I customers. The DMN National Retail Report-Dairy for September 16-22 noted the national weighted average advertised price for one gallon of milk was $2.71, down $0.11 from a week ago, but $0.02 higher than a year ago. The weighted average regional prices in the Midwest and South Central and changes from the previous week are $1.94(-$1.71) and $2.99(+$.28), respectively. Overall Class II demand is mixed with a rise in milk clearing into baking mixes but slower sales into frozen dessert products. Cream multiples are mixed, ranging from 1.18-1.30. Some cream processors indicate cream is tighter in the region as a new churning operation recently began manufacturing bulk butter instead of selling cream. The NASS Milk Production report noted August 2016 milk production in the 23 selected states was 16.7 billion pounds, 1.5% above a year ago. Milk cows in the 23 selected states totaled 8.68 million head, 43,000 head more than a year ago. The following table shows Central states included in the report and the monthly milk production changes compared to a year ago: August 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 148 - 1.3 Indiana 344 + 2.1 Iowa 416 + 3.0 Kansas 270 + 2.7 Michigan 935 + 6.6 Minnesota 802 + 0.8 Ohio 469 + 0.6 South Dakota 216 + 5.4 Texas 918 +11.0 Wisconsin 2,543 + 2.4 Cropping operations continue harvests on alfalfa, corn, and soybeans. Harvest in many areas is running about even with year ago and/or 5 year average values. One of the biggest challenges is working between spells of wet weather that are slowing fieldwork. Planting of oats and winter wheat is progressing. Despite recent rainstorms, some areas of the Central region are still in rank as abnormally dry to severe drought conditions. SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.3789-2.6208 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- home