MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central **UPDATED MADISON, WI. May 25, 2017 (REPORT 21) Milk output in the Central region is at/near the spring flush peak. Outlooks vary on when the decline of milk production will begin. Nevertheless, at this time, milk output is ample. Class I demand is slower. Many colleges have closed for summer vacation. K-12 schools in the South Central region have begun to close, while most North Central school districts are breaking in the next few weeks. The upcoming long weekend has some fluid milk contacts attempting to manage transportation gridlocks and long wait times at processing plants. Class III producers, reportedly encouraged by the cheddar block price increases, are taking in more milk than in previous weeks. Milk going into cheese vats is $3.00 to $5.00 under Class, however some situationally required spots were reported at Class. There is no shortage of cream in the Central states. Cream multiples remained in the 1.16 to 1.26 range for Class II production. Cream going into other Classes was reported as low as flat market prior to the upcoming holiday weekend. Reports on ice cream interests are generally higher, but some contacts believe that the rainy and cool weather conditions in the Midwest have noticeably hindered ice cream demand. Rainy weather also continues to slow crop production in the Upper Midwest. Wheat farmers in the South Central region expect harvest to begin within a week, and a dry forecast has them optimistic that yields will be good, although a bit behind last years'. The DMN National Retail Report-Dairy for May 19-25 noted the national weighted average advertised price for one gallon of milk was $2.46, down $.12 from a week ago, but $.12 higher than a year ago. The weighted average regional prices in the Midwest and South Central were $2.21 and $2.35, respectively. The NASS Milk Production report noted April 2017 milk production in the 23 selected states was 17.2 billion pounds, 2.0% above a year ago. Milk cows in the 23 selected states totaled 8.7 million head, 81,000 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: April** 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 166 - 0.6 Indiana 364 + 3.1 Iowa 432 + 2.4 Kansas 299 + 7.2 Michigan 941 + 4.2 Minnesota 826 + 2.0 Ohio 474 + 0.6 South Dakota 218 + 3.8 Texas 1,025 +12.8 Wisconsin 2,528 + 0.6 SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $2.7538-2.9912 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- home