MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  December 08, 2016 (REPORT 49)                           

Milk production is steady to higher in the Central region. Milk available for 
processing is in good balance right now. Manufacturers will pick up a spot load 
every now and then, but only if the price is right. Spot milk prices range from 
$1.00 under to $1.00 over Class. Demand for Class I is mixed. Some areas report 
demand from bottlers is strong, while other suggest weaker demand. Bottlers are 
assessing fluid needs closely as holiday breaks for educational institutions 
approach. Class II and Class III manufacturers are still pulling good volumes 
of milk as they try to meet holiday shipment deadlines. Some milk marketers 
expect Class II to slow in the next week and milk will be diverted into Class 
III manufacturing. Cream demand is strong as buyers from Mexico and Canada seek 
out available supplies. However, industry contacts suggest that although cream 
was tighter last week and into this week, supplies are starting to loosen up as 
holiday orders get filled. Cream multiples are lower this week, 1.18-1.28. 
Industry contacts report condensed skim demand is weak.The DMN monthly average 
of the range price series for Upper Midwest Class II cream during November, 
2016 was $2.4513, compared to $3.5671 a year ago. The NASS Dairy Products 
report noted October U.S. regular (hard) ice cream production totaled 60.1 
million gallons, down 5.1 percent from last year. January-October U.S. 
production totals 670.9 million gallons, 0.7 percent above 2015 during the same 
time span. October production in the Central region totaled 32.9 million 
gallons, 3.6 percent above a year ago. The DMN National Retail Report-Dairy for 
December 2-8 noted the national weighted average advertised price for one 
gallon of milk was $2.46, down $0.31 from a week ago, but $0.03 higher than a 
year ago. The weighted average regional prices in the Midwest and South Central 
were $2.09 and $2.65, respectively. The weekly Cow Slaughter under Federal 
Inspection report shows U.S. dairy cow slaughter for the week ending November 
19, at 58,400 head, 1100 head less than the comparable week a year ago.  


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.5508-2.7667           


1100CT Mike.Bandli@ams.usda.gov 608.557.7010
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