MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 11, 2017 (REPORT 19)                                

Rain, strong winds, and cooler weather have slowed, but not halted, fieldwork 
this week in much of the Central region. Some South Central farmers are anxious 
that continuing rainfall will hurt the quality of the wheat crop. Milk 
production continues at flush levels. Some contacts are reporting that spot 
milk offers are starting to taper a bit and that spring flush may be nearing 
its apex. Even so, Class III spot milk prices were reported at $4.00 to $6.00 
under Class. Some cheese producers continue to forego fortifying cheese with 
nonfat dry milk, as spot milk remains plentiful. Class I demand has slowed a 
bit, and bottlers are concerned about summer breaks at educational 
institutions. Some South Central colleges have begun summer vacation, and most 
Central region school districts will be on break by month's end. Cream, which 
saw some firmness last week, has reportedly returned to the availability levels 
of previous weeks. Cream multiples, into Class II manufacturing, were reported 
from 1.15 to 1.23. Some contacts report that ice cream interests have not been 
substantial yet, a result of the cooler weather. However, with forecasts 
showing increased temperatures, there are expectations that Class II orders 
will start to tighten the cream supply soon. The DMN National Retail Report-
Dairy for May 5-11 noted the national weighted average advertised price for one 
gallon of milk was $2.62, up $.26 from a week ago and $.33 higher than a year 
ago. The weighted average regional prices in the Midwest and South Central were 
$2.04 and $1.99, respectively. The NASS Dairy Products report noted March U.S. 
regular (hard) ice cream production totaled 74.7 million gallons, up 2.6 
percent from last year. January-March U.S. production totals 190.8 million 
gallons, 1.6 percent below 2016 during the same period. March production in the 
Central region totaled 41.6 million gallons, 7.3 percent above a year ago.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.4277-2.5965                                


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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