MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  December 22, 2016 (REPORT 51)                           

Southern and northern Central region farm milk production is generally 
steady. A recent cold snap sent temperatures into the subzero range, which 
challenged cow comfort for dairy operations in the northern tier of states. 
With adequate feedstocks on hand, though, most dairy producers noted the 
weather had fairly minor impacts on milk production. Transportation of milk 
from farm to balancing plant, and from balancing plant to processor, endured 
some challenges in the northern Plains area over the weekend, but most loads 
arrived intact. Bottler demand is trending sharply lower. Orders from K-12 
school districts plummeted due to the upcoming closures over the yearend 
holidays. Many higher education institutions are also cutting back orders as 
the fall semester ends. Spot milk availability improved substantially as a 
result of lower Class I demand as well as reduced interest from smaller 
Class II/III operators who are scheduling reduced production time for the 
holiday week. Milk buyers for Class III operations report the number of 
loads available this week exceeded expectations, Prices range from $2.00 to 
$4.00 under Class. Cream availability improved throughout the region. End 
users reported cream loads from the West region are readily clearing into 
Central II/IV operations. Some churners report offers on spot cream loads 
carry flat market multiples. Class II multiples are lower, ranging from 
1.13-1.22. Recent snow storms finished off field work activities for the 
season. The DMN National Retail Report-Dairy for December 16-22 noted the 
national weighted average advertised price for one gallon of milk was $2.92, 
up $0.57 from a week ago and $0.20 higher than a year ago. The weighted 
average regional prices in the Midwest and South Central were $2.05 and 
$2.70, respectively. The NASS Milk Production report noted November 2016 
milk production in the 23 selected states was 16.1 billion pounds, 2.6% 
above a year ago. Milk cows in the 23 selected states totaled 8.67 million 
head, 33,000 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: 
November 2016 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            150              ... 
Indiana             336           + 1.5
Iowa                404           + 3.9
Kansas              280           +11.6 
Michigan            888           + 5.3
Minnesota           774           + 1.3
Ohio                438           + 0.7
South Dakota        209           + 5.0
Texas               919           +11.4
Wisconsin         2,414           + 2.2


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3809-2.5705           

1100CT janet.linder@ams.usda.gov 608.557.7003
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