MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 3, 2008 (REPORT 27)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.0828-2.1900           

Class I sales were mostly lower in the new month as higher retail 
prices and often-sluggish food service sales impact demand.  Class II 
interest for dips, whipped, and sour cream production has held up in 
early July as food service and retailers prepare for the upcoming 
holiday weekend.  Ice cream production remains strong with cream demand 
good and supplies imported from other regions of the country.  
Condensed skim interest is sluggish and some sellers were looking at 
drying more condensed rather than take current, discounted prices.  
Both butter prices on the CME Group cash market and higher multiples 
are raising the cream cost.  Churning is steady to lighter seasonally 
with more butter being tempered for later use.  Manufacturing milk 
demand remains steady at best though somewhat hampered this week by the 
slowdown in cheese sales and the desire to take some time off at the 
plant for the holiday.  Reported spot prices are mostly unchanged in 
the upper region though there were not enough reports to report a 
range.  Milk volumes are just slightly lower in the upper Midwest where 
temperatures have generally been conducive for milk production.  Most 
plants continue to be operated on extended schedules in northern 
states.  Weather related problems caused power loss and other issues at 
plants already running full.  Further south, elevated temperature and 
humidity have caused greater declines in receipts.  Crop conditions, 
prices and feed availability will remain a concern for producers into 
next year.  Due to the extremely wet weather, first cutting alfalfa was 
delayed, the quality suffered, and expected yields for the year are 
likely to be lower.  

                WISCONSIN LIVESTOCK AUCTIONS (PER CWT.)               
                          JUN 26 - JUL 2  PREVIOUS YEAR               
SLAUGHTER COWS            $ 56.00- 63.00   $ 49.00- 55.00             
REPLACEMENT HEIFER CALVES $400.00-650.00   $450.00-800.00   

1100c G. Koerner 608-250-3205