MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 27 - Released on July 03, 2019

     Heat is affecting milk output in the Central region. Regardless, milk is widely available as
     many bottling and production facilities are closing for the holiday weekend. Other plant
     managers are taking advantage of the discounted milk and cream loads to add to near-term
     production. After the holiday dust has settled, and temperatures reach peak summer highs,
     cream and fluid milk availability is expected to shore up by middle to late July according
     to a number of contacts. Bottling sales are expectedly sluggish during the holiday week.
     Most cheese plant managers are foregoing the spot milk market. Discounts were not at typical
     holiday week levels. Spot milk prices ranged from $2 under to $0.50 over Class. Spot cream
     was available, as some butter makers took advantage of holiday plant closures to clear
     affordable loads. Weather has been fieldwork friendly, but planting insurance programs are
     being opted into at higher levels due to detrimental weather. Feed rations are a looming
     concern in the Midwest. As feed costs continue to rise, dairy farmers in the region expect
     that even with milk price improvements, further increases will be necessary for many
     farmers, particularly smaller farmers, to weather the financial storm.

     The DMN monthly average of the range price series for Upper Midwest Class II cream during
     June 2019 was $3.0921, compared to $2.9634 in May.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 6/28/19 to 7/04/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Conventional                        $1.97            $1.35          $2.86
      Organic                             $4.08            $4.47          $4.19

     Regional (Conventional)            Wtd. Ave.           Low            High
     Hawaii                               $4.99            $4.99          $4.99
     Northwest                            $0.99            $0.99          $0.99

     Regional (Organic)                 Wtd. Ave.           Low            High
     Midwest                              $3.99            $3.99          $3.99
     Northeast                            $3.83            $3.69          $3.99
     Northwest                            $4.39            $4.39          $4.39
     South Central                        $3.71            $3.50          $3.99
     Southeast                            $4.37            $3.99          $4.78
     Southwest                            $3.80            $3.49          $3.99


     Gallon, All Fat Tests                    Weighted Average Price
     National                          This Period       Last Week      Last Year
      Conventional                        $2.54            $2.70          $3.31
      Organic                             $5.00            $5.81          $6.99

     Regional (Conventional)             Wtd. Ave.          Low            High
     Midwest                              $2.06            $1.98          $2.29
     Northeast                            $3.69            $3.69          $3.69
     South Central                        $2.46            $1.99          $2.89
     Southwest                            $1.99            $1.99          $1.99

     Regional (Organic)                 Wtd. Ave.           Low            High
     Northwest                            $5.00            $5.00          $5.00

     Price Range - Class III Milk; $/CWT; Spot Basis:   - 2.00  -  + 0.50
     Trade Activity: Slow

     Midwestern U.S., F.O.B. Cream

     Multiples Range - All Classes:               1.2100 - 1.3100
     Price Range - Class II; $/LB Butterfat:      3.0632 - 3.1597
     Multiples Range - Class II:                  1.2700 - 1.3100


     Information for the period July 1 - 5, 2019, 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: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home