MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 30, 2017 (REPORT 13)                              

Heavy rainfall early this week in the South Central United States, 
particularly in drought and wildfire affected areas, is expected to yield 
healthy pasture and feedstock output. Anticipated volumes of good quality 
feedstock is expected to further increase the currently active milk 
production throughout the Central U.S. Central processing plants are 
reportedly at or near capacity, thus downtime is very limited. Some contacts 
are anxious as to what will result from a strong spring flush, with 
production and processing activity so strong this soon. Class I interest 
reports varied. Some bottlers saw an increase in orders from school 
districts returning from spring break, while others have already experienced 
the post-break uptick and are seeing fair/steady demand. Cheesemakers in the 
upper Midwest are getting spot milk offers from $1 to $4 under Class III. 
Cheese plants undergoing maintenance are cooperating with other cheese 
producers in order to find a home for the abundant milk supply. Once again, 
with an abundance of cream, butter makers in the Central region report 
churning cream and storing and/or selling the butter, instead of offering 
cream on the spot market. Class II cream multiples range from 1.12 to 1.20. 
Class IV cream multiples have been reported at 1.05. Some Midwestern 
contacts report receiving cream offers from the Western region, namely 
California. Ice cream production is reportedly in full swing, as Class II 
cream demand is climbing. Class III demand for cream varies. Some cream 
suppliers are reporting ebbing Class III interest, whereas others have 
reported improved Class III requests just ahead of the spring holidays. The 
DMN National Retail Report-Dairy for March 24-30 noted the national weighted 
average advertised price for one gallon of milk was $2.42, down $0.17 from a 
week ago and $0.16 lower than a year ago. The weighted average regional 
prices in the Midwest and South Central were $2.16 and $2.28, respectively.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3671-2.5362           

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-
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