MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  November 19, 2009 (REPORT 46)                           

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.9139-2.0740 
          
Fluid and cream demand was very strong for all or most of this week.  The week 
before Thanksgiving is traditionally the heaviest volume week of the year for 
bottlers.  Bottlers were anticipating heavy schedules early next week, until 
sometime on Tuesday, before schools close for the long weekend and orders are 
shipped for Wednesday.  Bottlers seemed to have little difficulty in getting 
extra loads if needed.  Orders were good for holiday specialties including 
eggnog, whipped, and sour cream as well as dips.  A few loads of upper Midwest 
cream were being hauled to California to supplement regional supplies.  Ice 
cream production continues to trend lower seasonally.  Manufacturing milk and 
cream supplies were generally tighter this week with milk prices about steady 
with recent weeks.  Increased volumes of milk and cream are expected to backup 
into manufacturing plants during the long holiday weekend.  A few early reports 
on manufacturing milk booked for the long holiday weekend were sharply lower.  
Spot prices are lower on the early holiday weekend manufacturing milk sales 
already booked.  Milk volumes are starting to increase seasonally in upper 
Midwestern states and more consistently further south, excluding areas where 
herd sellouts have been heaviest.  Long distance trucking traditionally is a 
problem next week, between the holiday and deer hunting seasons in various 
states.  Milk components are steady to higher seasonally.  Estimated milk 
production in selected Midwestern states compared with 2008 is:  Wisconsin, 
2.107 billion pounds, an increase of 71 million pounds (3.5%); Texas, 710 
million pounds, up 14 million pounds (2.0%); Minnesota, 743 million pounds, up 
18 million pounds (2.5%); Michigan, 660 million pounds, up 9 million pounds 
(1.4%); Iowa, 363 million pounds, unchanged.  The October 2009 number of cows 
was higher than October 2008 in all these states except Iowa.  Only Texas (-
3,000) and Michigan (-1,000) had fewer cows than September in this group.

1100c  George Koerner 608-250-3205