MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  August 10, 2017 (REPORT 32)                             

Milk output in the Central U.S. is experiencing a decline, but contacts report 
that it is not as palpable as in years past. Some contacts suggest feed rations 
and relatively comfortable, seasonally mild weather in the upper Midwest are to 
credit for the lack of a marked falloff of milk supplies. Bottling contacts 
reported an increase in activity. Some bottlers began school orders this week, 
while others suggest the end of August is when things start to pick up. This 
varies state by state, as school districts' opening weeks vary. Some logistical 
hurdles are expected with the onset of school bottled milk ordering. Cheese 
makers in the Midwest pointed out that spot market milk was harder to come by, 
even as prices are steady between flat market and $1.50 under Class III. Cream 
is still available, although there are reports that there is a little tightness 
of cream availability. Cream multiples were reported from 1.25 to 1.34 f.o.b. 
into Class II plants. Ice cream manufacturers remain a factor in the cream 
market. According to contacts, fresh ice cream production is still pulling at 
the availability of cream. The DMN National Retail Report-Dairy for August 4-10 
noted the national weighted average advertised price for one gallon of milk was 
$2.60, up 17 cents from last week and 6 cents higher than a year ago. The 
weighted average regional prices in the Midwest and South Central were $2.85 
and $2.49, respectively. The DMN monthly average of the range price series for 
Upper Midwest Class II cream during July 2017 was $3.2857, compared to $2.8892 
a year ago. The NASS Dairy Products report noted July U.S. regular (hard) ice 
cream production totaled 75.5 million gallons, down 2 percent from last year. 
January-June U.S. production totals 409.3 million gallons, 1.8 percent below 
2016 during the same period. June production in the Central region totaled 41.3 
million gallons, 1.8 percent above a year ago.


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.3875-3.6314           
       
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