MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  January 19, 2017 (REPORT 3)                             

Wintery weather slowed milk pickups on dairy operations throughout the Central 
region early in the week. A few processing plants closed on Monday due to 
driving conditions being too hazardous for employees to risk reporting for 
their regular shifts. By Tuesday, though, most farm pickups and milk delivery 
schedules were close to normal. Manufacturing milk volumes for processing are 
abundant throughout the region. However, a few processors indicate their 
intakes from grass-fed operations are seasonally lower as those operators 
frequently aim for calving during weather complementary to pasturing season. 
Milk protein and butterfat components are trending higher. Bottling demand is 
steady at seasonal levels as school pipelines refilled during the last week. 
The DMN National Retail Report-Dairy for January 13-19 noted the national 
weighted average advertised price for one gallon of milk was $3.06, up $0.32 
from a week ago and $0.44 higher than a year ago. The weighted average regional 
prices in the Midwest and South Central were $2.28 and $3.37, respectively. 
Interest in spot milk loads is lower into Class III operations, according to 
milk marketers. With a good portion of Super Bowl cheese orders met, cheese 
manufacturers are reassessing inventories. Spot milk prices range from $2.00 
under Class III to $1.00 over. Demand from Class II plant operators is steady 
to higher as orders for soft serve mix trend upward. Cream demand is steady 
into churning as various manufacturers cite summer commitments as their 
motivation to keep clearing cream into butter and then into storage. Class II 
cream interest is seasonally higher. Several end users report they increased 
the cream volumes under contract for 2017, thus, they are less active on the 
cream spot market. Some East cream loads are clearing into the Central region. 
Multiples shifted lower on the bottom of the range, which is 1.06 - 1.21. Spot 
cream loads out of the West region are fulfilling part of the Central region 
cream needs. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4057-2.7461           


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