MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 13, 2017 (REPORT 28)                               

As warm, humid weather has continued in the Midwest, milk outputs and component 
levels have decreased. That being said, milk availability into processing 
plants varies by region, as some intake plants continue to report plentiful 
milk offers and/or receipts. Class I sales are sluggish. Contacts assess that 
relative to last year, sales are significantly lighter. Class III intakes are 
mixed. Some cheese producers have seen a noteworthy decrease in availability, 
while other cheesemakers report similar milk availability to previous weeks. 
Class III spot milk prices ranged from flat market to $3.00 under. Some cheese 
contacts relay that milk suppliers are more willing to negotiate discounted 
milk prices via contract, as to avoid a reliance upon spot market 
variabilities. Cream availability reports are mixed. F.O.B. cream multiples 
ranged from 1.20 to 1.30. Butter makers reported cream multiples beginning at 
1.18. Contacts estimate that cream will continue to tighten with warming 
weather. Although, some suggest that ice cream manufacturers bought cream 
earlier this year than in years past, so competition for cream supplies may be 
lighter than expected. The DMN National Retail Report-Dairy for July 7-13 noted 
the national weighted average advertised price for one gallon of milk was 
$2.39, down $1.27 from a week ago, but $0.07 higher than a year ago. The 
weighted average regional prices in the Midwest and South Central were $2.09 
and $2.24, respectively. The NASS Dairy Products report noted May U.S. regular 
(hard) ice cream production totaled 72.6 million gallons, down 0.3 percent from 
last year. January-May U.S. production totals 333.6 million gallons, 1.8 
percent below 2016 during the same period. May production in the Central region 
totaled 39.5 million gallons, 5.2 percent above a year ago.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.1343-3.3955           

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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