Fluid Milk and Cream Review - Central
USDA - Thu Mar 08, 11:08AM CST
MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  March 8, 2018 (REPORT 10)                              

A number of dairy farmers in the upper Midwest are facing a difficult 
decision: auction cows when the beef price is ebbing or continue milking as 
milk prices are trending downward. Additionally, a number of conventional 
and organic dairy farms, both in the Midwest and eastward, are fighting the 
clock in order to find new homes for their milk as their contracts have been 
given an expiry. During a time when some dry commodity inventories are 
coincidentally at record levels, the situation has become disconcerting to a 
number of contacts in the Midwest and throughout the rest of the country. 
Bottling orders in the Central are unchanged, as producers are preparing for 
rerouted milk loads during spring break. Fluid milk loads into Class III 
operations were reported in the $2 to $3 under Class range, although many 
cheesemakers are foregoing the spot market altogether. Cream availability is 
tightening, as Class II and Class III producers are pulling from the 
supplies. Some Central region cream buyers and sellers are expecting next 
week to be the final push ahead of spring holiday cream buying season.            

F.O.B. cream multiples ranged from 1.20 to 1.25.

The DMN monthly average of the range price series for Upper Midwest Class II 
cream during February 2018 was $2.4800, compared to $2.4132 a year ago. 
The DMN National Retail Report-Dairy for March 2-8 noted the national 
weighted average advertised price for one gallon of milk was $2.87, up $.10 
from last week, but $.24 below one year ago. The weighted average regional 
prices in the Midwest and South Central were $2.04 and $2.99, respectively. 

The NASS Dairy Products report noted January U.S. regular (hard) ice cream 
production totaled 56.6 million gallons, down 0.9 percent from last year. 
January production in the Central region totaled 32.9 million gallons, 11.5 
percent above a year ago. 
SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.6316-2.7413           


1100CT Israel Weber - Israel.weber@ams.usda.gov 608-422-8601
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews