MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  February 09, 2017 (REPORT 6)                            

Seasonally mild weather continues to support steady to higher milk production 
trends in the North and South Central areas. Milk supplies in some areas exceed 
local processing capacities. Milk handlers are coordinating milk shipments with 
manufacturers in distant areas to help disperse milk throughout the region. 
Bottlers report demand is generally quiet, with add-on and pushback loads 
zeroing out throughout the region. Food service orders are steady. Class II 
demand is lower for the week as yogurt production backs away from the demands 
related to New Year's resolution fulfillment. Soft serve/mix orders are steady. 
Hard ice cream production is unchanged at seasonal levels. Some manufacturers 
report it is a little early for sustained runs on stick/cup/cone production 
lines, but some short runs are occurring to maintain inventories. Cream demand 
is steady, with spot loads readily available throughout the region. Multiples 
are lower on the bottom of the range, but unchanged at the top, 1.04 - 1.18. 
Price competition between West and Central cream spot loads is keeping a lid on 
Central multiples, especially in locales bordering the West region. Interest 
from cheese manufacturers is steady to lower as they reassess cheese 
inventories post-Super Bowl. With several weeks looming before the next 
holiday, some cheese makers are reluctant to get too far ahead on uncommitted 
inventories, especially in an uncertain market. There is comparably better 
interest in milk from specialty cheese makers. With availability generally not 
an issue, price is usually the deciding factor for clearing spot milk loads. 
Prices range from $2.00 under to $0.50 over Class. The DMN monthly average of 
the range price series for Upper Midwest Class II cream during January, 2017 
was $2.5510, compared to $2.4522 a year ago. The NASS Dairy Products report 
noted December U.S. regular (hard) ice cream production totaled 50.3 million 
gallons, down 11.0 percent from last year. January-December U.S. production 
totals 773.1 million gallons, 0.6 percent below 2015 during the same time span. 
December production in the Central region totaled 27.2 million gallons, 9.0 
percent below a year ago. The Central region accounted for 53.8 percent of U.S. 
unadjusted production in February. January-February Central unadjusted 
production totals 64.3 million gallons, 4.5 percent behind the same time span 
in 2015. The DMN National Retail Report-Dairy for February 3-9 noted the 
national weighted average advertised price for one gallon of milk was $2.68, up 
$0.13 from a week ago and $0.37 higher than a year ago. The weighted average 
regional prices in the Midwest and South Central were $2.64 and $3.48, 
respectively. In the South Central area, small grains emergence is nearing 100% 
and some operations are gearing up for top dressing applications to enhance 
spring growth. Farming operations in the North Central area are waiting out 
snow covered field to access conditions of winter wheat and alfalfa fields. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2958-2.6049           


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