MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 51 - Released on December 22, 2021

     Milk production throughout the fall has remained steady or increased according to farmer
     contacts. Some have wrapped up November reports, and say this trend has continued. Component
     levels are holding steady or higher. A number of farmers say butterfat components have
     bloomed in recent months, and credit higher feed quality with bolstering fat levels. Winter
     wheat farmers in the southern portion of the region are hopeful for some upcoming
     precipitation to benefit currently dry soil conditions. December Class I sales were propped
     up early in the month, but have slowed down, expectedly, with the upcoming holidays.
     Cheesemakers are busily securing discounted spot milk loads. This week's spot price
     discounts pale in comparison to last year's, when prices reached $8.50 under Class ahead of
     the holiday weekends. Cream availability increased, as well, but a number of cream end users
     are opting for cream from the Western region, due to the ample availability, and therefore
     lower costs, even with freight cost differentials. Butter plant and Class II/III cream end
     users are expecting abundant cream availability through next week, but are unsure what will
     take place after the holidays pass.

     Price Range - Class III Milk; $/CWT; Spot Basis:   -4.00 – 1.50
     Trade Activity: Active


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1500 - 1.3800
     Price Range - Class II; $/LB Butterfat:      2.7047 - 2.8711
     Multiples Range - Class II:                  1.3000 - 1.3800


     Information for the period December 20 - 24, 2021, issued weekly

     Secondary Sourced Information:

     The NASS Milk Production report noted November 2021 milk production in the 24 selected
     states was 17.3 billion pounds, 0.1 percent below a year ago. Milk cows in the 24 selected
     states totaled 8.890 million head, 24,000 head fewer than a year ago. The following table
     shows the 24 states included in the report and the monthly milk production and percent
     changes compared to a year ago:

     November 2021 Milk Production, (USDA-NASS)

                (Million Lb.)       % Change From
                                      1 Year Ago

     Illinois            142           - 2.1
     Indiana             352           - 1.7
     Iowa                451           + 2.7
     Kansas              333           - 1.2
     Michigan            942           - 0.8
     Minnesota           851           + 1.9
     Ohio                443           - 3.1
     South Dakota        307           +16.7
     Texas             1,269           + 2.8
     Wisconsin         2,556           + 2.2

     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