MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. December 15, 2016 (REPORT 50) In the Central region, current farm milk production in slightly higher, following seasonal patterns. However, the winter storm Decima is expected to pass throughout the Midwest during the end of the week. Therefore, some dairy operators, in this area, are anticipating a reduction in milk yields due to the upcoming wintry weather. At this point, milk intakes are in good balance with processing needs. Milk butterfat and protein components continue improving and are close to the peak of the season. A few Class III processors are looking for extra milk loads in order to support the active regional cheese production. Spot milk prices range from flat market to $1.00 over Class. Bottlers are decreasing milk orders as schools get close to the holiday break. Nevertheless, demands from retailers and food service are fair to good. Condensed skim demand from Class II processors is weakening. Cream multiples are slightly lower this week, 1.17-1.26. Industry contacts report condensed skim demand is weak. The DMN National Retail Report-Dairy for December 9-15 noted the national weighted average advertised price for one gallon of milk was $2.35. The weighted average prices in the Midwest and South Central regions were $2.10 and $2.48, respectively. The weekly Cow Slaughter under Federal Inspection report shows U.S. dairy cow slaughter for the week ending November 26, at 45,700 head, 1,500 head higher than the comparable week a year ago. SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.4482-2.6366 1100CT Angel.Teran@ams.usda.gov 608.557.7011 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