MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  July 9, 2009 (REPORT 27)                               

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.4586-1.5304           

Class I demand was spotty ranging from unchanged at light summer levels 
to having a surprise spurt in orders needing extra loads quickly.  
Retail feature activity on fluid products has picked up and, along with 
the usually stronger first of the month demand, extra loads were needed 
in some markets.  The holiday weekend helped to put a temporary end to 
milk shipments to the south from the upper Midwest.  Class II product 
orders, not including ice cream, are generally solid and often above 
year ago levels.  Ice cream production and demand for cream remains 
strong though many operations were closed at least for the Independence 
Day holiday, if not for a long weekend.  Cream supplies are mixed from 
heavier (cheaper) over the weekend to occasionally tighter.  With the 
end of churning and cream purchases by a large Midwestern butter plant 
this week, cream buyers and sellers are still commenting over the 
likely impact on cream prices and options for surplus cream around 
holidays.  Manufacturing milk interest was steady to occasionally 
improved with reported spot prices ranging from around flat class to 
upwards of +$1.50 over class delivered.  The volume of "cheap" surplus 
milk seemed to disappear in the last week or so and manufacturing 
schedules are steady to occasionally lighter.  The reduction allowed at 
least a few plants to take a day off or operate on lighter schedules.  
Milk intakes are fairly flat in upper tier states though components are 
still at low summer levels as conditions remain favorable for milk 
production.  High temperatures and drought in parts of Texas have 
caused extra culling, though mostly on beef animals, due to the lack of 
grass and expensive feed.  In the mid-section of the region, warmer 
temperatures had returned and some declines in plant receipts were 
occurring.   

1100c  George Koerner 608-250-3205