MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  October 27, 2016 (REPORT 43)                            
Milk production has turned upward in many southern areas of the 
Central region. Weather conditions have moderated, and cow comfort is 
on the rise. In the North Central area, dairy operators report 
generally steady milk production, but protein and butterfat 
components are recording some increases. Overall Class I demand for 
milk is stepping lower. Several balancing plant operators indicate 
they are regularly fielding cancelations on orders. This is leaving 
some milk available for spot clearing. Interest from Class III 
operators is steady for some specialty cheese production. Commodity 
cheese producers are generally not looking for additional milk loads. 
Spot prices on milk loads range from $1.00 -$1.50 over Class. Cream 
is readily available within the region. Class II operators are taking 
in lower cream volumes as production runs shift toward fall/winter 
norms. Cream multiples are mixed, ranging from 1.17 - 1.30, depending 
on location and timing. The DMN National Retail Report-Dairy for 
October 21-27 noted the national weighted average advertised price 
for one gallon of milk is $2.99. There were not recorded retail 
advertisements in the Midwest for the week. The weighted average 
regional price in the South Central $3.04. Some fall tillage was 
completed ahead of rain entering the Central region late in the week. 
Corn harvest is progressing in the North Central area, but is mostly 
complete in the South Central area. The NASS Milk Production report 
noted September 2016 milk production in the 23 selected states was 
16.0 billion pounds, 2.3% above a year ago. Milk cows in the 23 
selected states totaled 8.67 million head, 36,000 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: 
 
September 2016 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            142           - 0.7
Indiana             332           + 1.8
Iowa                397           + 4.5
Kansas              268           + 6.3 
Michigan            874           + 5.8
Minnesota           770           + 2.4
Ohio                442              ...
South Dakota        207           + 5.1
Texas               869           + 5.3
Wisconsin         2,439           + 3.3




SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.0633-2.2926