MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 6, 2017 (REPORT 27)                               

Milk production in the Midwest remains steady. Warming temperatures have 
tapered milk yields slightly, but some contacts suggest that relative to 
other regions, Midwestern milk production is maintaining significant yields. 
Bottling contacts are in the midst of an expected seasonal slowdown, but 
anticipate that retail sales increases will help to offset the summer lull. 
Fourth of July plant closings have kept milk at bargain rates for multiple 
types of processing outlets. For the Class III plants that maintained active 
production schedules early in the week, milk intakes were reported from $1 
to $3 under. Pre-holiday cream supplies were available for Central contacts. 
Some cream processors were not accepting cream from Sunday through Tuesday, 
as the holiday breaks created some cream backlogs. Butter makers received 
cream multiples at/around 1.18 to 1.20. Class II multiples ranged from 1.20 
to 1.29 f.o.b. Ice cream manufacturers are still taking in cream, and 
contacts suggest cream availability is expected to tighten again, now that 
the holiday is over. The DMN monthly average of the range price series for 
Upper Midwest Class II cream during June 2017 was $3.1049, compared to 
$2.7156 a year ago. The DMN National Retail Report-Dairy for June 30-July 6 
noted the national weighted average advertised price for one gallon of milk 
was $3.66, up $1.23 from a week ago and $1.38 higher than a year ago. The 
weighted average regional price in the Midwest was $2.50.
 
SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.1608-3.3979           

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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