MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  February 4, 2010 (REPORT 5)                            

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $1.6272-1.6962           

Fluid interest seemed generally solid again this week, at least 
through midweek.  While some interest may be for rebuilding store 
stocks depleted from last week's major storm in central and lower 
sections of the region, orders were also good early at least for 
dips and sour cream products for Super Bowl use.  Ice cream interest 
remains sluggish with some producers taking the vantage that inputs 
like NDM, whey and buttermilk may get cheaper in upcoming weeks and 
more than offset any increase in cream prices.  Others are running 
slightly heavier including some to cover shortfalls due to weather 
related production shutdowns.  Churning remains active with demand 
for butter solid.  Printing is active as Lent is only a couple weeks 
away and usually butter gets promoted during the season.  Spot 
interest in milk for cheese production remains fairly light and 
mostly just from specialty variety makers needing a load or two.  
Some producers of non-specialty varieties would just as soon sell 
milk than build inventory.  On a light test, reported prices range 
from fractionally above class to fractionally over $1.00 over class, 
fob seller.  While some producers are shopping for a new milk buyer, 
due to capacity concerns in spring, few operations are looking to 
add significant supplies in the upper Midwest.  Added plant capacity 
coming on line in Texas and New Mexico will benefit growing and/or 
new producers there.  While the NASS January 1 milk cow inventory 
number is lower than a year ago, replacement heifer numbers are 
higher, likely to increase milk cow numbers in the not too distant 
future.  Certainly, the replacement heifer number is bearish for 
price forecasts and is likely, at least partially, due to sexed 
semen.  Current milk intakes are steady to seasonally higher in 
northern sections.  Further south, recent winter storms caused 
significantly slower movement, to and from plants, but early reports 
indicate minimal fluid volumes being dumped.

1100c  George Koerner 608-250-3205