MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 16, 2013 (REPORT 20)                                

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.9699-2.0513           

Farm milk production in the Central region is variable.  South and Northeast 
Central milk production is making a strong comeback.  Some milk processors 
indicate they may have to push back on contract supply loads as internal 
volumes build up seasonally, as well as from declining fluid sales.  West 
Central milk handlers indicate the flush has yet to arrive in its usual form 
and may skip over the region due to feed and 2012 late breeding issues.  
Fluid demand is spotty, with some upticks related to grocery store specials.  
This pulled more milk into one-half and one gallon production lines, but 
single serve packaging is slowing as schools prepare for the end of spring 
terms.  Spot load availability of milk is tighter, and sales ranged from flat 
Class to $1.60 over.  Several market participants expect spot milk prices 
will return to discounting once schools are done for the term.  Spot cream 
load availability tightened this week in the Central region as churns kept 
cream to complete near term contracts.  With Class II multiples steady in the 
1.21 - 1.26 range, cream sellers indicate price incentives are minimal to 
sell cream.  Ice cream manufacturers reportedly ramped up production on all 
lines this week, and producers received higher contract volumes of milk, 
condensed skim, and cream to supply cup, cone, stick and extrusion lines.  
Cow comfort is more of a concern this week.  Industry participants from areas 
along the Iowa/Minnesota/Nebraska/South Dakota interface report extreme daily 
temperature variations occurring.  Overnight temperatures were below 
freezing, followed by 100+ degree daytime readings in that area.  Some 
residents report 90 degree daytime temperatures, but ice is still visible on 
lakes.  Farmers report more fields were suitable for cultivating and planting 
activity this week.  Some fields originally planned for corn may be switched 
to soybeans, depending on plantings accomplished in the next 7 - 10 days.  
Planting progress, according to NASS's Crop Progress report, shows a majority 
of Central region states behind on planting corn and soybeans when compared 
to the 2008 - 2012 average.


1100CT  janet.linder@ams.usda.gov   608.278.4157