MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 22, 2016 (REPORT 47)                           

Central region milk production is trending gradually higher, following usual 
seasonal trends. Bottler demand is active early in the week, but tapering lower 
as the holiday nears. Consumer outlet managers have stocked up on holiday 
favorites, such as flavored milk and eggnog, in addition to the standard fluid 
offerings. Cheese makers at some locations are adding a day of production to 
some schedules as spot milk becomes more available over the long weekend. 
Prices for spot milk loads range from $5.00 under to Class. A few buyers also 
indicated they've negotiated for daily delivery of loads through December, with 
prices trending under Class. Cream availability is mixed as some smaller 
operations plan extended holiday weekends and other operations are ramping up 
to take advantage of additional cream volumes on the market. Cream multiples 
are steady to lower, 1.21 to 1.32. The DMN National Retail Report-Dairy for 
November 18-24 noted the national weighted average advertised price for one 
gallon of milk was $2.61, up $0.04 from a week ago, but $0.11 lower than a year 
ago. The weighted average regional prices in the Midwest and South Central were 
$2.54 and $2.77, respectively. The NASS Milk Production report noted October 
2016 milk production in the 23 selected states was 16.5 billion pounds, 2.7% 
above a year ago. Milk cows in the 23 selected states totaled 8.67 million 
head, 31,000 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: 
 
October 2016 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            151              ... 
Indiana             342           + 2.1
Iowa                416           + 4.3
Kansas              281           + 7.7 
Michigan            903           + 4.9
Minnesota           795           + 1.9
Ohio                455           + 0.2
South Dakota        215           + 4.4
Texas               922           + 8.2
Wisconsin         2,490           + 2.2
SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4345-2.6558           

1400CT 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