MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 19 - Released on May 07, 2020

     Farm milk output is steady to lower. Notably, fat components are also reportedly lower. Some
     contacts have said milk dumping, at least in their respective areas, has ceased altogether.
     Also, some milk handlers suggest dairy farm production is sliding because of self-regulation
     as some dairy farmers have begun selling off percentages of their milking herds. Bottlers
     are suggesting retail is stronger, but they are facing some definitive hurdles as most
     school districts are not planning to reopen until fall semester. Cheese producers are
     finding discounted spot milk, even with busier production schedules throughout the Midwest.
     Cream is still available, but multiples have sharply increased week to week. Demand reports
     across all Classes have increased. Namely, though, ice cream producers' pulls are reportedly
     much stronger when compared to all of April. Cream multiple upticks were expected this week,
     but some contacts were caught off guard by the marked increases. Contacts in the upper
     Midwest say corn planters are in the fields, but unlike last year, fields may be a little
     dry. Winter wheat in the south Central portion of the country is in good shape. Some severe
     storms/hail have done damage in pockets, but crop yields are expected to be positive at this
     point.

     The DMN monthly average of the range price series for Upper Midwest Class II cream during
     April was $1.1746, compared to $2.0912 in March.

     Price Range - Class III Milk; $/CWT; Spot Basis:   -6.00  -  -4.00
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               0.9000 - 1.2500
     Price Range - Class II; $/LB Butterfat:      1.1735 - 1.4669
     Multiples Range - Class II:                  1.0000 - 1.2500


     Information for the period May 4 - 8, 2020, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released May 5, 2019, by the National Agricultural Statistics Service (NASS), Agricultural
     Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production – States and United States: March 2019 and 2020
                                   Monthly Production (1000 Gallons)    Percent Change from
     Total Cream, Regular (Hard)       March      Feb     March          March      Feb
     Region                             2019     2020      2020           2019     2020
     United States                    65,957   52,484    64,026           -2.9     22.0

     Atlantic                         14,258   11,984    13,812           -3.1     15.3
       Pennsylvania                    3,351    3,419     3,294           -1.7     -3.7

     Central                          40,062   31,759    39,176           -2.2     23.4
       Missouri                        3,403    2,907     3,222           -5.3     10.8
       Ohio                            2,011    1,839     2,111            5.0     14.8

     West                             11,637    8,741    11,038           -5.1     26.3
       California                      6,196    4,312     5,491          -11.4     27.3
       Oregon                          1,307    1,017     1,422            8.8     39.8
       Utah                            1,927    1,627     2,125           10.3     30.6

     Ice Cream, Regular (Hard) – Cumulative Production: January-March
                                Cumulative Production  Percent Change

                                        (1000 Gallons)     from
     Report Month                       2019     2020      2019
     March                           172,390  168,667      -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