MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 21 - Released on May 25, 2023

     Warming temperatures have begun to shift weekly milk production trends some regional
     contacts indicate. They say milk output has steadied, but there are some reports of
     component levels moving lower. Springtime temperatures are up and down from one area to the
     next, but expectations are that post-flush milk output contractions are looming. Right now,
     though, milk remains readily available for all uses. There were continuing reports of
     slowdowns at the Class I level, as schools have shifted from low to zero ordering. Some
     summer school lunch programs are expected to keep some bottlers running, but the bulk of
     school district ordering has already ebbed in parts of the southern areas of the region and
     is expected to dwindle in the upper Midwest near-term. Cheesemakers continue to report spot
     milk prices between $11 under to $4 under Class III. More plants are coming back online
     after maintenance related downtime, though, and for the first time this year, there are
     expectations being passed along from cheesemakers that after the upcoming holiday weekend,
     milk prices may shift higher. Cream availability was typical for a pre-holiday week.
     Multiples are ranging from the high 1.10s to the mid 1.20s for butter producers in the
     region. Similar to the fluid milk market, contacts expect multiples to begin inching up
     following Memorial Day, as Class II processing is continuing its slow shift higher. Butter
     makers have said they expect to run pretty heavy schedules ahead of the seasonally expected
     cream price increase. Corn and bean planting in the upper Midwest has been spurred on by a
     stretch of recently dry and sunny weather, as most reports are relaying corn planting being
     ahead of the recent years' average. Wheat harvest expectations in the central and southern
     states of the region are mixed, but some areas have received some much needed seasonal
     rainfall. That said, parts of Kansas, Texas and Oklahoma either received the rain too late
     for a hearty yield, or are still too dry to expect strong yields.

     Price Range - Class III Milk; $/CWT; Spot Basis:    -11.00 - -4.00
     Trade Activity: Moderate


     Midwestern U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   2.8677 - 3.1618
     Multiples Range - All Classes:               1.1700 - 1.2900
     Price Range - Class II; $/LB Butterfat:      3.0638 - 3.1618
     Multiples Range - Class II:                  1.2500 - 1.2900


     Information for the period May 22 - 26, 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