MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 20, 2017 (REPORT 29)                               

Not much has changed since last week that factors into Midwest milk production 
volumes. Continuously, hot temperatures and rainfall make for humid conditions 
and adverse cow comfort. Nonetheless, there is still plenty of milk available. 
However, a source indicated that discounts for distressed milk are shifting 
lower, $1.50 to $2.00 under Class. Other source reports show f.o.b. spot load 
transaction between $1.75-3.50 under Class. Hence, the market's surplus milk 
volumes are diminishing as milk production, in general, points to seasonal 
declines and tapering availability. As well, committed milk loads, which 
typically clear to manufacturing, are decreasing on a weekly basis. A few 
bottling operations sought to delay contracted milk shipments as those volumes 
are not needed in the current marketplace while Class I fluid milk demand 
remains sluggish. The likelihood that a major change from the status quo will 
occur, prior to schools reopening, is very slim. Cream is adequate to abundant 
still. Some cream suppliers note that July availability appears even heavier 
than the previous month. Multiples for fluid cream range 1.20-1.32, on good 
demand. Class II production of ice cream continues to pull on the majority of 
the region's cream supply. The DMN National Retail Report-Dairy for July 14-20 
noted the national weighted average advertised price for one gallon of milk was 
$2.26, down 13 cents from a week ago and 46 cents below a year ago. The 
weighted average regional prices in the Midwest and South Central were $2.18 
and $2.77, respectively. 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.1182-3.4300

       
1100CT Daniel.Johnson@ams.usda.gov (608)422-8605
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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