MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  September 29, 2016 (REPORT 39) 

Milk production volumes are picking up, especially in northern parts of the 
region.  Plant problems in the East have resulted in condensed skim from the 
East being offered in the Midwest, but with few takers. There is limited spot 
milk activity. Reports are that buyer inquiries are few, because of 
expectations that prices will fall in the coming weeks. Buyers who can wait are 
comfortable with holding back. Milk sellers report that interest from ice cream 
manufacturers is dropping. The DMN National Retail Report-Dairy for September 
23-29 noted the national weighted average advertised price for one gallon of 
milk was $2.32, down $0.39 from a week ago, and $0.22 lower than a year ago. 
The weighted average regional prices in the Midwest and South Central and 
changes from the previous week are $1.55(-$0.39) and $2.19(-$0.80), 
respectively. Cream multiples are mixed, ranging from 1.08-1.25. Cream is 
readily available in the region. Some sources are projecting that even more 
cream will be on the market next week. This is driving multiples down in 
efforts to secure sales. Some sellers do not see cream cheese manufacturing 
kicking in and taking cream volumes that might have been expected.                        

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.1422-2.4794           

1100CT eric.graf@ams.usda.gov 
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