MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 41 - Released on October 12, 2023


NOTICE: After October 16, 2023, all information found on this report will transition to a new PDF format. 
The same data will be collected and disseminated through AMS Marketing Analysis and Reporting 
Services (MARS) platform. The new pdf report can be accessed on the AMS website at:
https://www.ams.usda.gov/mnreports/ams_1100.pdf


     As has been reported, Midwestern dairy farm closures trended higher than in previous years
     this summer. Generational dairy farms are shuttering or moving into other sectors of the
     agriculture industry. As seasonal milk availability would typically begin to edge nearer to
     fulfilling processing capacities, it is not. Some contacts are beginning to question if the
     impact of those farm closures is playing a part, or if it is simply a matter of milk supply
     and demand, which has been lopsided in the region after a notable amount of milk was
     dispersed from north to south (including southwest/southeast) in the latter half of the
     summer. Class I intakes are steady. Class III spot milk prices are still over market. Last
     year in week 41, cheesemakers were paying $1 under to $.25 over Class III. Some contacts say
     cream has loosened when compared to previous weeks. They say this week may have been the
     dividing line from seasonally tight to seasonally available markets. Early week cream
     multiples were in the 1.30s, mid- to late-week trades were in the 1.20s. Other contacts say
     cream markets, and end users, are justly uncertain because of the abnormal butter market
     boom. Contacts say there were fewer bulls in Pamplona in July than in the U.S. butter market
     in October. Some butter makers in the region continue to say spot cream remains too firm for
     their access. Farmers in the Midwest have combines in the fields. Reports say despite the
     limited rain and, in some cases, paltry yield predictions this growing season, some farmers
     are passing along more positive-than-expected early results.

     Price Range - Class III Milk; $/CWT; Spot Basis:    .50 - 1.50
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   4.3287 - 4.6723
     Multiples Range - All Classes:               1.2600 - 1.3600
     Price Range - Class II; $/LB Butterfat:      4.5349 - 4.6723
     Multiples Range - Class II:                  1.3200 - 1.3600


     Information for the period October 9 - 13, 2023, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov