MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  February 16, 2017 (REPORT 7)                            

Haulers in the South Central area indicate milk pickup volumes are building 
from week to week. Mild temperatures are conducive to cow comfort in the area, 
and drier weather is improving the condition of holding pens. Milk quality is 
steady to improving. In the North Central area, above average daytime 
temperatures are supporting active milk production. Alongside the mild late 
winter temperatures, dairy operators report stores of forage stocks on hand are 
ample to carry herds through to the expected first harvest of 2017 alfalfa. 
Silage is readily available throughout the upper Midwest. Class I interest is 
unchanged on a week to week basis. Most bottlers indicate year over year sales 
volumes are trending lower in many categories. Class II milk demand is mixed, 
with some buyers reporting they ordered fewer loads compared to last week while 
other manufacturers maintained steady intake volumes. Cream demand is mixed, 
with some butter manufacturers reluctant to take in cream loads that will push 
butter production above weekly projections. Other churn operators are buying 
spot cream loads below market and are building stocks ahead of seasonally lower 
summer cream stocks. Class II cream prices are unchanged, 1.04 - 1.18. Demand 
for spot milk loads is unsettled. Many areas within the Central region, as well 
as other regions, are oversupplied with milk for fulfilling supply contracts. 
Milk is available on a spot basis from many outlets within and outside the 
region. With one cheese plant currently down for the near term, milk marketers 
in the upper Midwest report milk availability stepped higher this week. Beyond 
that, marketers point to the seasonal uptick in farm milk production. The mix 
of spot loads included conventional milk as well as organic milk clearing into 
conventional markets due to a lack of regional organic processing capacity. 
Spot load prices range from $2.00 to $1.50 under Class. The DMN National Retail 
Report-Dairy for February 10-16 noted the national weighted average advertised 
price for one gallon of milk was $2.85, up $0.17 from a week ago and $0.52 
higher than a year ago. The weighted average regional prices in the Midwest and 
South Central were $1.76 and $3.03, respectively.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2412-2.5429           


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