MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  April 06, 2017 (REPORT 14)                              

Milk availability in the Central United States is abundant. Precipitation 
has covered many parts of the Central region throughout the week. Feedstock 
and forages in the South Central region, with some assistance from the 
recent rain, are expected to be plentiful. Adding to an expectedly strong 
spring flush, a large milk processor in the North Central region notified 
numerous dairy farmers that, due to tightening trade restrictions from 
Canada, their milk would no longer be purchased by the processor starting in 
May. Some North Central fluid milk and cream contacts question where the 
additional milk will go. A number of contacts have taken to the phones in 
order to assist the dairy farmers in their search. Class I interest was 
reportedly steady, as a majority of school districts are back from spring 
break. Cheesemakers who are active in the spot market, as a number of cheese 
producers report using internally and/or contractually sourced milk, saw 
spot milk prices from $1.50 to $5.00 under Class. Cream remains abundant. 
Class II cream multiples range from 1.12 to 1.20. However, contacts report 
receiving fewer calls from cream suppliers and expect Class II and Class III 
cream interest to increase. Although, others assess that cooler weather will 
deter some interest from ice cream manufacturers until after the spring 
holiday season. The DMN National Retail Report-Dairy for March 31-April 6 
noted the national weighted average advertised price for one gallon of milk 
was $2.68, up $0.26 from a week ago, but $0.08 lower than a year ago. The 
weighted average regional prices in the Midwest and South Central were $2.00 
and $3.14, respectively. The DMN monthly average of the range price series for 
Upper Midwest Class II cream during March 2017 was $2.4250, compared to $2.3704 
a year ago. The NASS Dairy Products report noted February U.S. regular (hard) 
ice cream production totaled 58.7 million gallons, down 2.8 percent from last 
year. January-February U.S. production totals 115.8 million gallons, 1.4 
percent below 2016 during the same time span. January production in the Central 
region totaled 32.4 million gallons, 0.2 percent above a year ago.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.3537-2.5218           

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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