MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  June 13, 2013 (REPORT 24)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.9417-2.0341           

Milk supplies in the region are rated as steady from one month ago, but 
lower than one year ago.  Milk handlers and processors shared anecdotal 
reports on feed availability issues hindering farm milk production.  
Conversely, late calving in many herds is keeping milk volumes higher than 
anticipated for this time of year.  Fluid demand is flat in many markets.  
One or two bottlers pushed back on milk loads because of an apparent slow 
start in tourism in some parts of the North Central region.  Bottlers 
relate recent upticks in gasoline prices as part of the reason that 
Northwoods vacationing, and related restaurant sales, appear lower than 
one year ago.  Demand for additional milk from some Class II and Class III 
processors is higher for the week, but availability of spot loads of milk 
is tight within the region.  Transportation costs are limiting some sales.  
Spot milk prices range from $1.50 under to $.50 over Class.  Some plants 
augmented Central milk supplies with condensed skim spot loads from the 
West and Southwest to meet active Class II production schedules.  Orders 
for soft serve mix from some fast food chains are higher as they offer 
reduced price frozen dessert menu items for a short time.  Cream multiples 
firmed within the region as Class II demand reaches toward seasonal peak 
production.  Multiples ranged from 1.26 - 1.32.  Farmers in some North 
Central states report first cutting alfalfa has yet to be taken in some 
areas.  Extended periods of moist, overcast weather conditions limited 
effective drying and some farmers opted to leave alfalfa until conditions 
improved.  Now, though, some stands are lodging and forage nutritive 
values are on a downward trend for first crop alfalfa still in the field.  
Heavy thunderstorms moved through North Central states again this week, 
halting replanting efforts on corn as well as the field work on soybean 
fields waiting to be planted.  Lodging in some wheat fields was reported 
in the storm affected areas.  



1100CT  Janet.Linder@ams.usda.gov   608.278.4157