MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  October 12, 2017 (REPORT 41)                            

Milk output in the Central region has continued to ebb. Recent rain, following 
weeks of mostly dry weather, has some upper Midwest farmers pushing to complete 
the corn silage harvest. Class I sales are slightly slower to steady, depending 
on the area. Cheesemakers report that spot milk prices are expected to 
increase, although currently reported prices remained steady at flat market to 
$2 over Class. Logistically, hurricane aftereffects are creating some major 
hauling issues for dairy processors and buyers throughout the region, if not 
the entire country. Demand is outweighing supply, as many haulers are focusing 
their efforts in the storm affected areas. Multiple contacts relay that cream 
supplies are beginning to show signs of tightness in the Midwest and South 
Central region. Cream multiples, into Class II plants, ranged from 1.24 to 
1.30. The DMN National Retail Report-Dairy for October 6-12 noted the national 
weighted average advertised price for one gallon of milk was $2.97, up 31 cents 
from last week and 59 cents higher than a year ago. The weighted average 
regional prices in the Midwest and South Central were $2.06 and $2.70, 
respectively. The NASS Dairy Products report noted August U.S. regular (hard) 
ice cream production totaled 74.2 million gallons, up 1.5 percent from last 
year. January-August U.S. production totals 554.1 million gallons, 1.4 percent 
below 2016 during the same period. August production in the Central region 
totaled 40.3 million gallons, 3.3 percent above a year ago.

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.9004-3.0407           

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