MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  October 6, 2016 (REPORT 40) 

In the South Central area, milk production is unchanged to lower. Herds are 
adjusting to lower day/night temperatures. In the North Central area, farm milk 
pickup volumes are mostly steady. The high humidity in some areas has worked 
against cow comfort. Bottled milk interest is at seasonal levels with few add-
on loads requested beyond contracted volumes. Some cheese plant operators 
indicated they had been using spot condensed skim and cream loads to operate 
above current in-house intakes, but those loads are less available this week. 
Prices on spot loads of milk range from $.75-$2.00 over Class with limited 
availability within the region. Cream demand is trending lower from Class II 
manufacturers as the next few weeks are the shoulder season ahead of planned 
heavy production of holiday items in early November. Cream multiples are mixed, 
ranging from 1.12-1.22. Cream is readily available in the region as some churn 
operators are opting to reduce butter production to control inventories. The 
NASS Dairy Products report noted August 2016 U.S. regular (hard) ice cream 
production totaled 70.5 million gallons, up 1.4 percent from last year. 
January-August U.S. production totals 547.9 million gallons, 2.0 percent above 
2015 during the same time span. August production in the Central region totaled 
37.3 million gallons, 8.6 percent above a year ago. The DMN National Retail 
Report-Dairy for September 30-October 6 noted the national weighted average 
advertised price for one gallon of milk was $3.48, up $1.16 from a week ago, 
and $0.74 higher than a year ago. The weighted average regional prices in the 
Midwest and South Central and changes from the previous week are $2.79(+$1.24) 
and $2.99(+$0.80), respectively. Cream multiples are mixed, ranging from 1.08-
1.25.


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.1599-2.3528           

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