MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  April 13, 2017 (REPORT 15)                              

Milk production continues briskly in the Central United States. South Central 
contacts report that consistent and moderate rainfalls are benefiting crop 
production in areas of North Texas and Oklahoma. Upper Midwest fieldwork, on 
the other hand, is being slowed by overly persistent precipitation. 
Nevertheless, current milk components are generally protein and fat heavy. Some 
contacts are expecting a veritable spring flush to begin by the end of April. 
This concerns Central milk producers, as locating new processors to take on 
milk is becoming increasingly difficult. Class III producers have started to 
turn away spot milk, reported from $1.50 to $5.00 under Class, due to cheese 
stocks being at or near capacity. Class I demand is not helping the supply 
situation. School districts are reportedly not ordering as much as expected 
following spring break, and many institutions will break for spring holidays 
this week and into early next week. Cream remains available. Butter contacts 
suggest cream multiples into Class IV are typically in the 1.05 to 1.14 range, 
however some flat market multiples were reported due to specific hauling and 
transport circumstances. Class II cream multiples ranged from 1.14 to 1.20. 
Class II interests are mixed. Some say inconsistent weather in the North 
Central region is hindering sales of cream into ice cream manufacturing. Other 
contacts expect post-holiday interests to increase from Class II processors. 
The DMN National Retail Report-Dairy for April 7-13 noted the national weighted 
average advertised price for one gallon of milk was $2.45, down $0.23 from a 
week ago, but $0.03 higher than a year ago. The weighted average regional 
prices in the Midwest and South Central were $1.94 and $1.79, respectively.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4259-2.5536                      

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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