MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  June 08, 2017 (REPORT 23)                               

Although weather in the upper Midwest has noticeably warmed, contacts report 
that cow comfort has not been affected much, and flush milk output continues. 
Class I operators have scaled back as many school districts have begun break, 
while others are closing at the end of the week. Reports of milk heading for 
cheese vats are mixed. Class III milk spot loads were reported from $2.50 to 
$6.00 under Class III. A number of cheese producers reported receiving fewer 
milk offers this week than in previous weeks. Some producers, who have forgone 
fortifying their cheese with nonfat dry milk (NDM) stocks because of the amount 
of discounted milk coming in, have begun to dip into their NDM inventories. 
Even as ice cream makers are notably ramping up interests, cream remains 
available for all uses in the Central region. Class II cream multiples were 
reported from 1.16 to 1.23. Class IV cream multiples were reported at around 
1.15. South Central farm contacts reported beneficial rains over the weekend 
which helped increase reservoir levels. The DMN National Retail Report-Dairy 
for June 2-8 noted the national weighted average advertised price for one 
gallon of milk was $3.34, down $.12 from a week ago, but $.90 higher than a 
year ago. The weighted average regional prices in the Midwest and South Central 
were $2.41 and $2.88, respectively. The NASS Dairy Products report noted April 
U.S. regular (hard) ice cream production totaled 70.8 million gallons, down 3.1 
percent from last year. January-April U.S. production totals 262.3 million 
gallons, 1.8 percent below 2016 during the same period. April production in the 
Central region totaled 40.3 million gallons, 4.3 percent above a year ago. The 
DMN monthly average of the range price series for Upper Midwest Class II cream 
during May 2017 was $2.6494, compared to $2.3956 a year ago.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.8029-2.9720           

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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