MD_DA230 DA MD DA230 Fluid Milk and Cream Review - Central MADISON, WI. June 22, 2017 (REPORT 25) Milk output has eased a bit in the Midwest. The warmer temperatures have brought milk yields down to less-than-flush volumes. However, milk is still available for various processing channels. Class I facilities are limiting production during school breaks, and some facilities plan to take some time off for the 4th of July. Although current Class III intakes are steady, there is concern that cheese producers, with weakening cheese and whey prices, will cut back on milk intakes. Currently, spot milk is flowing into cheese vats at $1.00 to $4.00 under Class. Cream demand, from Class II, III and IV producers, is increasing. Butter producers are planning to store butter for the early fall peak and continue to see strong retail and food service sales. Cream intakes, from ice cream manufacturers, have increased alongside the temperatures. F.O.B. cream multiples into Class II production range from 1.23 to 1.32. Butter makers are taking in cream multiples at or around 1.20 f.o.b. The DMN National Retail Report-Dairy for June 16-22 noted the national weighted average advertised price for one gallon of milk was $2.55, up $.03 from a week ago, and $.04 higher than a year ago. The weighted average regional prices in the Midwest and South Central were $1.80 and $2.60, respectively. The NASS Milk Production report noted May 2017 milk production in the 23 selected states was 17.8 billion pounds, 1.8% 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: May 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 172 + 0.6 Indiana 370 + 2.2 Iowa 448 + 1.4 Kansas 297 + 3.8 Michigan 993 + 4.0 Minnesota 868 + 2.6 Ohio 494 + 1.4 South Dakota 224 + 2.8 Texas 1,064 +14.7 Wisconsin 2,622 - 0.7 SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT F.O.B. producing plants: Upper Midwest - $3.2115-3.4465 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