MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  September 21, 2017 (REPORT 38)                          

Milk production reports in the Central region vary, although more contacts are 
beginning to relay a tightening supply. Warm weather is persisting as fall 
approaches, and some suggest the lower milk supply may continue for a few more 
weeks. The Southern and Southeastern states affected by hurricanes, along with 
schools reopening, have begun to pull milk from Central and Midwestern intake 
facilities. Some cheese makers have reported that milk spot loads were 
difficult to find or unavailable altogether. Spot milk into Class III plants 
ranged from flat market to $1.50 over. As ice cream manufacturers have edged 
manufacturing back, more cream is finding its way into butter churns and Class 
III plants. Cream multiples were unchanged, from 1.22 to 1.30 f.o.b. The DMN 
National Retail Report-Dairy for September 15-21 noted the national weighted 
average advertised price for one gallon of milk was $2.45, down 40 cents from 
last week and 26 cents lower than a year ago. The weighted average regional 
prices in the Midwest and South Central were $1.97 and $2.55, respectively. The 
NASS Milk Production report noted August 2017 milk production in the 23 
selected states was 17.0 billion pounds, 2.1 percent above a year ago. Milk 
cows in the 23 selected states totaled 8.7 million head, 66,000 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: 
 
August 2017 Milk Production, (USDA-NASS)

           (Million Lb.)       % Change From
                                 1 Year Ago
  
Illinois            156           + 2.6
Indiana             350           + 1.7
Iowa                434           + 2.8
Kansas              293           + 5.4 
Michigan            948           + 3.0
Minnesota           838           + 4.0
Ohio                468           + 2.4
South Dakota        225           + 4.2
Texas             1,004           + 9.2 
Wisconsin         2,588           + 1.8 

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.9573-3.1512           
         
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