MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  December 1, 2016 (REPORT 48)                           

Milk production trends are unchanged in the Central region, with on-farm milk 
pick up volumes trending steadily higher. Although weather has been mixed 
within the region, the seasonal production cycle is firmly established and is 
following the usual steady to higher pattern. Fluid demand was very light at 
the beginning of the week, but has been rebuilding through midweek as retailers 
reassess stocks on hand and place orders. Also, school districts are 
reconvening, along with offering the usual single serve milk packages as part 
of meal plans. Production of some holiday items, such as eggnog or specialty 
flavored milk, is scheduled to continue through the end of the year. Milk 
availability on the spot market is limited as processing plants that were 
closed for a holiday hiatus are once again taking in milk volumes. Cheese 
manufacturers continue to look for spot milk loads to cover near term 
production, but some are running into shortages. Eastern brokers report 
fielding requests for spot milk loads from Central region cheese manufacturers. 
Spot milk prices range from $1.00 under to $1.00 over Class. In addition, a few 
milk marketers report that orders from Class II manufacturers have blown 
through the milk supply in the upper Midwest and marketers are extending their 
searches to fulfill requests. Cream demand is steady to higher within the 
region and also from manufacturers in the East region. Market participants 
indicate continuing exports of cream are tightening supplies in both regions. 
Cream multiples are steady to higher, 1.21-1.34. The DMN National Retail 
Report-Dairy for November 25-December 01 noted the national weighted average 
advertised price for one gallon of milk was $2.72, up $0.11 from a week ago, 
and $0.03 higher than a year ago. The weighted average regional prices in the 
Midwest and South Central were $2.53 and $3.19, respectively. Some updates were 
made to last week's retail data due to the holiday week schedule.


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4633-2.7280           


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