MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. March 23, 2017 (REPORT 12) Weather and cow conditions continue to keep milk production active in the Central region of the United States. Some areas in the South Central region not affected by wild fires are seeing pasture and hay ground greening up. With adequate forages predicted across the Central region and minimal changes in milk cow numbers, many contacts expect a strong spring flush. Class I demand continues downward as many school districts across the region are on spring break. North Central cheesemakers are getting spot milk offers from Class to $3 under Class III. Although milk offers are coming from in and out of the region, many cheese producers continue to utilize internally sourced and/or contractually supplied milk. Cream is abundant. Butter makers continue to churn cream to fulfill contracts and store butter, instead of selling cream on the spot market. Contacts suggest a seasonal uptick in Class II and Class III demand is occurring. Reports on ice cream makers' interests vary. Some contacts expected an earlier start with the warmer winter. Other contacts predict an uptick in ice cream manufacturers' orders following spring holidays. Class II cream multiples range from 1.10 to 1.20. Class IV cream multiples have been reported at 1.05. The DMN National Retail Report-Dairy for March 17-23 noted the national weighted average advertised price for one gallon of milk was $2.59, up $0.08 from a week ago and $0.41 higher than a year ago. The weighted average regional prices in the Midwest and South Central were $2.19 and $2.86, respectively. The NASS Milk Production report noted February 2017 milk production in the 23 selected states was 15.7 billion pounds, 1.0% below the previous year's unadjusted total. Milk cows in the 23 selected states totaled 8.7 million head, 66,000 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: February 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 152 - 2.6 Indiana 331 - 0.9 Iowa 399 + 1.0 Kansas 272 + 3.8 Michigan 859 + 1.2 Minnesota 768 - 0.6 Ohio 424 - 2.8 South Dakota 202 + 1.0 Texas 928 +12.3 Wisconsin 2,323 - 2.1 SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.3612-2.5758 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