MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  August 24, 2017 (REPORT 34)                             

Central region milk output continues steadily to a little lower. Central 
contacts view the fairly mild temperatures and improved quality of feedstocks 
to have lessened the typical summer declines. Bottling production has increased 
this week as school districts return and/or are nearing their return throughout 
the region. There are continuing reports that milk is leaving the Central 
region, bound for the southeast. This leaves certain plants in pockets of the 
upper Midwest area with noticeably lower milk intakes. Cheese producers' spot 
milk accessibility varies by locality. There were some discounted milk spots 
reported, but general spot milk availability into Class III production has 
declined. Spot milk prices ranged from $1 under to $1 over Class. Cream remains 
in relative balance. Some contacts suggest the peak prices have passed, and 
cream offers are increasing. That being said, cream is mirroring milk 
availability, as others report a lack of cream offers in their respective 
areas. Class II cream multiples ranged from 1.24 to 1.34 f.o.b. The DMN 
National Retail Report-Dairy for August 18-24 noted the national weighted 
average advertised price for one gallon of milk was $2.24, down 98 cents from 
last week and 34 cents lower than a year ago. The weighted average regional 
prices in the Midwest and South Central were $2.04 and $1.99, respectively. The 
NASS Milk Production report noted July 2017 milk production in the 23 selected 
states was 17.2 billion pounds, 1.9 percent above a year ago. Milk cows in the 
23 selected states totaled 8.7 million head, 72,000 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: 
 
July 2017 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            158           + 1.3
Indiana             348           + 1.2
Iowa                434           + 2.1
Kansas              284           + 4.0 
Michigan            959           + 2.9
Minnesota           840           + 3.1
Ohio                469           - 0.4
South Dakota        224           + 4.2
Texas             1,025           +14.8 
Wisconsin         2,588           + 0.7 


SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $3.2990-3.5651  
             
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