MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 24, 2009 (REPORT 47)                           

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.8758-2.0588           

Class I demand was very strong early in the week, typical for the early part of 
Thanksgiving week.  Demand was slowing for some bottlers and Class II specialty 
product producers already on Tuesday, November 24, as shipments need to be 
available in stores for purchase on Wednesday.  Class II interest was also very 
good early as orders for dips, whipped and sour cream were being filled for the 
holiday.  Ice cream interest is steady to lighter with some operations closing 
for a long holiday weekend.  Cream and milk supplies were fairly snug over the 
previous weekend and early in the week.  By midweek, offerings were heavier to 
manufacturing channels, with prices on holiday weekend cream sharply lower than 
early in the week.  Reported manufacturing milk prices in the upper Midwest 
ranged for the holiday weekend ranged from at least -$1.00 below class to around 
$1.75 over class for a deal that including shipments before the holiday.  
Available milk supplies were expected to be heavier over the holiday weekend but 
are not expected to cause severe pressure on plant capacity.  Some operations 
tried to move extra fluid supplies to bottlers last week and early this week to 
allow manufacturing plants a break before the holiday.  Milk volumes continue to 
generally trend seasonally higher with milk component levels at the usually 
higher November levels.  Dryer weather has allowed better progress with the fall 
harvest.  Over 90% of the soybeans are out of field though corn continues to lag 
normal.  Wet field and still high corn moisture levels (20 - 30+ %) continue to 
cause harvest and fieldwork delays.  Much of the corn has lighter test weight 
due to the lack of summer heat units.  The higher moisture levels are causing 
dryers to use larger volumes of propane gas and supplies are tight at bulk 
outlets.  Daytime highs in the 40s and 50s are allowing some cows to spend more 
time outside. 

1445c  George Koerner 608-250-3205