MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. January 26, 2017 (REPORT 4) In the South Central area, milk production is steady to building. There have been some fluctuations in farm milk pickup volumes as weather affects cow comfort. Milk quality issues are more frequent in areas that recently received rainfall. In the North Central area, dairy operators report milk production is level to higher, with steady improvements in butterfat and protein components. A recent snowstorm in the upper Midwest slowed farm milk pickups and deliveries to some processing plants early in the week. The drawdown on milk supplies in the region into bottling is unchanged to slightly higher as education institutions added a day for food service after last week's holiday-shortened days of operation. Within the region, milk marketers report there are instances of milk clearing from one state to another, and these load movements are depressing spot milk prices in the receiving states. In addition, some Class III plant managers are trying to clear loads of their usual milk intake volumes to put a damper on cheese production. This, reportedly, is due to ample commodity cheese inventories. Spot milk prices are under some pressure as availability grows, with a current range of $2.00 under to flat Class. Cream demand is steady into butter churns, but Class II manufacturers are taking cream loads ahead of the churns to supplement contract loads. Production of cream-based dips and sour cream are seasonally higher. The Class II cream multiples range shifted lower, ranging from 1.05 to 1.20. The DMN National Retail Report-Dairy for January 20-26 noted the national weighted average advertised price for one gallon of milk was $2.39, down $0.67 from a week ago and $0.36 lower than a year ago. The weighted average regional prices in the Midwest and South Central were $1.94 and $2.71, respectively. The NASS Milk Production report noted December 2016 milk production in the 23 selected states was 16.8 billion pounds, 2.4% above a year ago. Milk cows in the 23 selected states totaled 8.7 million head, 53,000 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: December 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 160 - 1.2 Indiana 350 + 0.6 Iowa 424 + 3.2 Kansas 288 + 9.5 Michigan 910 + 3.9 Minnesota 816 + 1.1 Ohio 459 + 0.2 South Dakota 218 + 4.3 Texas 953 +11.7 Wisconsin 2,520 + 1.7 SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.3573-2.6940 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