MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 10, 2016 (REPORT 45)                           

Mild weather throughout the Central region is supporting active milk 
production. As drier weather prevails in the South Central area, milk quality 
is returning. Butterfat and protein components are improving seasonally. As 
milk production builds incrementally, some plant operators indicate they have 
already struck agreements to handle condensed skim loads from outside the 
Central region as the holidays approach. Throughout the North Central and North 
East, handlers and manufacturers are planning for the best, while acknowledging 
that there will be a short term milk overload around the end of the year. 
Bottler interest is steady to lower as school accounts decreased orders ahead 
of the shorter holiday week. Some interest is building for production of eggnog 
and other flavored milk products. Although milk production is trending higher, 
milk marketers and handlers indicate spot milk loads are being sought out by 
manufacturers in all Classes. In some areas, milk is well short of keeping 
production facilities running at capacity. Spot prices on milk range from Class 
to $1.50 over. Cream availability is tighter in the Central region as Class 
II/III production heats up ahead of the holidays. Production of sour cream, 
dips, cream cheese, and specialty drink items is higher. Cream multiples firmed 
throughout the region, with the following range, 1.21-1.31. Drought has 
reemerged as a concern for areas of Nebraska, Oklahoma, and Texas, especially 
for fields planted to overwintering crops, but the balance of the region has 
received enough rainfall to mitigate drought worries. The DMN National Retail 
Report-Dairy for November 4-10 noted the national weighted average 
advertised price for one gallon of milk is $2.16, $.38 below last week's 
price. The weighted average regional prices in the Midwest and South Central 
regions are $2.15 and $2.96, respectively. The NASS Dairy Products report 
noted September 2016 U.S. regular (hard) ice cream production totaled 62.2 
million gallons, down 4.9 percent from last year. September 2016 production in 
the Central region totaled 34.3 million gallons, 2.5 percent higher than a year 
ago. This regional total accounts for 55.2 percent of the monthly national 
production.  

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2796-2.4680           

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