MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  January 05, 2017 (REPORT 1)                             

Throughout the Central region, the overall milk production trend is steady to 
growing. The challenge facing manufacturers is finding sufficient room at local 
plants to timely process milk. Various cooperatives have lent a helping hand to 
other cooperatives in clearing milk volumes, as space allows. A modest uptick 
in milk loads moving into Class I has helped ease the processing burden in some 
areas. Milk marketers indicate bottler orders are improving for next week. The 
DMN National Retail Report-Dairy for December 30-January 5 noted the national 
weighted average advertised price for one gallon of milk was $2.69, up $0.19 
from a week ago and $0.44 higher than a year ago. The weighted average regional 
prices in the Midwest and South Central were $1.99 and $2.93, respectively. 
Current higher Class I demand also sending more cream onto the market at a time 
when cream loads were already plentiful. The appetite for cream from Class II 
end users is improving as hard pack/soft serve/frozen dessert makers are 
reengaging some production lines. For those manufacturers, active sales into 
the southern states for the warm weather season are quickly approaching. Thus, 
the current plentiful cream supplies are a benefit to growing Class II 
production rates. Class II cream multiples shifted lower on the bottom of the 
range, but held steady on the top, with a full range of 1.05 - 1.20. Spot milk 
prices rebounded from the near lows of last week leading into the extended 
holiday weekend. Cheese plant operators reported spot milk loads are still 
plentiful within the region. With specialty cheese orders emerging for near 
term sales, some operators added additional vats onto the weekly totals and 
were glad to have milk available. Milk spot prices range from $4.00 to $2.00 
under Class III price.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4130-2.7577           

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