MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 38 - Released on September 21, 2023

     In regard to cow comfort, weather has dramatically improved throughout the region in the
     past three weeks. Texas is receiving rainfall and cooler temperatures, and Upper Midwestern
     and Northern Plains contacts have said fall-like weather has been the recent norm,
     particularly cooler nights and mornings. Despite this, milk availability for processors has
     not rallied in kind. Class I pulls are a large factor at play in this. Bottlers are
     refilling their recently depleted pipelines as schools are in full-on purchasing status.
     Cheesemakers are not receiving more milk offers. In fact, some said they were interested in
     adding some milk to their vats, but finding those spot loads did not happen this week
     despite a willingness to pay over the Class III price. Spot milk prices ranged from $.50 to
     $1.50 over Class III, while last year's price range during week 38 was Class III to $1
     over. Condensed skim availability has been steady to lighter for the latter half of the
     summer. Cream availability ranged somewhat widely from early week to mid/late week. Butter
     makers relayed finding some spot loads below the 1.30 multiple mark as they oscillate
     between churning and micro-fixing. That said, cream moving into Classes II and III is
     somewhat hearty, as seasonal retail favorites are near their peak production season. Ice
     cream manufacturers' cream needs have ebbed from August, as was expected. Near-term cream
     availability remains unclear. Some contacts expect more to come online with higher milk and
     milkfat output at the farm level, but strong processing of whips, cream cheese, and seasonal
     dips are clearly pulling from the overall pool. Silage corn cutting is progressing, and some
     improvements to milk output rates are expected in the next four to six weeks.

     Price Range - Class III Milk; $/CWT; Spot Basis:    .50 - 1.50
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.3815 - 3.8178
     Multiples Range - All Classes:               1.2400 - 1.4000
     Price Range - Class II; $/LB Butterfat:      3.5451 - 3.8178
     Multiples Range - Class II:                  1.3000 - 1.4000


     Information for the period September 18 - 22, 2023, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov