MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 16, 2017 (REPORT 11)                              

Fluid Milk and Cream Review - Central

Milk production is in an upward trend in the Central United States. Even with a 
short stint of single digit temperatures in the Upper Midwest early in the 
week, contacts do not foresee a production slowdown. South Central contacts 
report the weather has been beneficial for cow comfort, with few extreme 
temperatures and low precipitation. Class I demand has not picked up after 
weeks of slow orders. Some educational institutions are on spring break now, 
and many more will be away next week. Most Class III contacts continue to 
report that spot milk is not an option at this time. Spot milk prices ranged 
from $2.00 to $5.00 under Class, but with many cheesemakers contractually 
content, spot milk entering cheese vats has been light. Reports on Class II 
demand are mixed. Some contacts report a growing interest from ice cream 
producers. Other contacts suggest the late winter weather will hold up Class II 
ordering until late March and into early April. Cream continues to be readily 
available. Butter makers are still choosing to churn cream and store the 
butter, in lieu of selling cream on the spot market. Class II cream multiples 
range from 1.05 to 1.20. Class IV cream multiples have been reported at flat 
market. The DMN National Retail Report-Dairy for March 10-16 noted the national 
weighted average advertised price for one gallon of milk was $2.51, down $0.60 
from a week ago and $0.03 lower than a year ago. The weighted average regional 
prices in the Midwest and South Central were $1.98 and $2.73, respectively. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2759-2.6010           

1100CT Israel.weber@ams.usda.gov (608) 422-8601
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