MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 03, 2016 (REPORT 44)                           

Slow, steady increases in farm milk intakes are noted throughout the Central 
region at balancing plants. Freshening started during the last week or two 
in the north Central area, lagging the south Central by about a month. Dairy 
operators are transitioning cows to the milking string. Class I interest is 
steady. Some additional milk volumes are clearing to bottling to meet 
production needs of holiday related items, such as eggnog and specialty 
flavored milk. Demand for milk spot loads is mixed, as is availability. 
Location matters according to cheese manufacturers looking for additional 
milk. Some plant operators are unable to locate additional spot loads. Spot 
milk prices range from Class to $1.50 over. Cream demand improved this week 
as sour cream and cream cheese production increase ahead of the holidays. 
Some churn operators are also in the market for cream spot loads to fill 
late orders for holiday butter orders and/or bulk. Cream contracting is 
ongoing, with buyers reporting multiples generally lower than anticipated 
for 2017. Some cream buyers are trying to limit purchases of long distance 
cream to help moderate transportation costs in 2017. Cream sales into Mexico 
are increasing seasonally. Cream multiples are lower to steady compared to 
last week, with a range of 1.16-1.30. The DMN National Retail Report-Dairy 
for October 28-November 3 noted the national weighted average advertised 
price for one gallon of milk is $2.54, $.45 below last week's price. The 
weighted average regional prices in the Midwest and South Central regions 
are $2.99 and $2.12, respectively. Harvesting of corn and soybeans halted in 
many areas of the north Central region as rain muddied fields. Some 
operators indicated they may have to wait until a frost to get into low-
laying fields. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.1634-2.4245     

1100CT Janet.Linder@ams.usda.gov 608.278.4157
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home