MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  April 27, 2017 (REPORT 17)                              

Wet weather in much of the North Central region and parts of the South Central 
U.S. has hampered fieldwork. Farmers in the South Central region report wheat, 
in a few areas, has been drowned out. As crop and feedstock output levels face 
weather related delays, milk production conversely is at spring flush volumes. 
Class I demand is steady. However, contacts are anxious about the upcoming 
school breaks for summer vacation. Spot milk was readily available for 
cheesemakers at $1.50 to $5.50 under Class III. Some cheese producers, who 
typically turn away spot milk offers, report the prices were advantageous for 
cheese production goals and opted to take on some spot milk this week. Ice 
cream manufacturers' interests are picking up. Class II cream multiples ranged 
from 1.16 to 1.22. Cream remains readily available. Class IV multiples are 
being reported as low as 1.05. However, Central butter contacts suggest cream 
is expected to tighten in the near term. The DMN National Retail Report-Dairy 
for April 21-27 noted the national weighted average advertised price for one 
gallon of milk was $2.44, down $1.34 from a week ago, but $.09 higher than a 
year ago. The weighted average regional prices in the Midwest and South Central 
were $2.66 and $2.24, respectively. The NASS Milk Production report noted March 
2017 milk production in the 23 selected states was 17.5 billion pounds, 1.8% 
above a year ago. Milk cows in the 23 selected states totaled 8.7 million head, 
72,000 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: 
 
March 2017 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            170           - 1.2
Indiana             368           + 1.9
Iowa                444           + 2.3
Kansas              306           + 6.6 
Michigan            956           + 3.5
Minnesota           849           + 1.9
Ohio                481           + 1.1
South Dakota        223           + 3.7
Texas             1,065           +16.4 
Wisconsin         2,598           + 1.5 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4047-2.5291           

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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