MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  May 23, 2013 (REPORT 21)                                

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.9218-2.0339           

In general, as the manufacturing community prepares for the upcoming 
extended holiday weekend, some processors note they received few calls 
to place milk loads.  In years past, milk would often sell well below 
Class prices during this weekend.  With recent additions to Central 
region milk processing capacities, bargain priced loads are scarce, at 
least as of mid-week.  Many facilities are also limiting down days to 
just Monday, thus the majority of milk handling is taking place with 
minimal changes.  Contrary to the general Central spot milk market, 
though, one or two hotspots within the Central region are dealing with 
pushback from fluid accounts and creating strong needs to place milk 
loads into nearby manufacturing facilities.  Spot milk prices 
reportedly range between flat Class and $2.50 under.  Cream is 
expected to be somewhat long during the weekend, and some churning 
operations hope to capture Central and East cream loads offered 
through the balance of the week.  Contract and some spot sales into 
Class III are active for the week as cream prices offer good 
opportunities to manufacture cream-based cheeses.  Class II cream 
multiples are slightly lower on the bottom of the range and slightly 
higher on the top, stretching from 1.20 - 1.27.  Reports continue 
regarding the feed challenges facing Central region dairy producers.  
A week of storms limited access to pasture in many areas.  Some 
producers reformulated to lower energy rations as a way to bridge the 
gap between stored feed and 2013 feed crop availability.  The lower 
energy rations result in less milk production, yielding fewer dollars 
on milk checks.  Some hay prices reported this week ranged from $350 - 
$450/ton delivered in the Central region.  Anecdotal reports indicate 
winter wheat and barley fields planted as early feed crop alternatives 
are struggling and may yield limited feed value.  According to the 
NASS Milk Production report, April 2013 milk production increased 
compared to one year ago in seven of the ten Central region states 
included in the NASS 23 Selected States Milk Production report.  
Central region monthly milk production increases range from 1.0% in 
Iowa to 6.4% in Kansas.  On a regional basis, Central April 2013 milk 
production shows a 1.0% increase over one year ago.  Despite those 
increases, several milk handlers indicate the flush is apparently 
behind them as milk intakes are declining seasonally.  



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