MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 24 - Released on June 11, 2020

     Farm milk output is mixed from farm to farm. Some dairy farm contacts say weather has been
     pleasant enough for some actual upticks, while more contacts suggest farm milk output is
     seasonally declining. Some are awaiting May numbers, but they expect to see lower numbers
     year to year and month to month. Regardless, milk demand is solid into balancing plants.
     Some plants are at lower capacity than expected. Fluid milk demand into Class I is
     seasonally slow. Cheese producers are still actively producing. Therefore, milk in the upper
     Midwest is spread somewhat thin. That being said, the spot milk price range lowered on the
     top of the range, but offers were sparse and overall spot milk trading was quieter, which
     could have led to the lower numbers. For perspective, last year's spot milk prices during
     week 24 reached $1 under Class. Cream remains somewhat tight, although like spot milk
     prices, fewer multiples were reported. Butter churners say spot cream is beyond their reach,
     financially. There was talk of some multiples reaching into the 1.50s and 1.60s, while the
     reported range only reached the mid 1.40s. Ice cream production is busier and expected to
     stay busy throughout the month of June. Wheat harvesters are in the fields in the south
     Central region. Midwestern contacts relay corn is emerging and in good condition for the
     most part. Alfalfa cutting is well ahead of last year's wet spring. For the most part,
     farmers are having a much smoother season than they were during a historically wet 2019
     planting/cutting season.

     Price Range - Class III Milk; $/CWT; Spot Basis:   0.75 -  +2.00
     Trade Activity: Slow



     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.3000 - 1.4500
     Price Range - Class II; $/LB Butterfat:      2.4616 - 2.6245
     Multiples Range - Class II:                  1.3600 - 1.4500


     Information for the period June 8 - 12, 2020, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released June 4, 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: April 2019 and 2020
                                   Monthly Production (1000 Gallons)    Percent Change from
     Total Cream, Regular (Hard)       April    March     April          April    March
     Region                             2019     2020      2020           2019     2020
     United States                    64,681   63,707    62,892           -2.8     -1.3

     Atlantic                         13,826   14,039    13,524           -2.2     -3.7
       Pennsylvania                    3,458    3,426     3,366           -2.7     -1.8

     Central                          39,017   38,551    37,768           -3.2     -2.0
       Missouri                        3,020    3,222     2,599          -13.9    -19.3
       Ohio                            2,065    2,111     2,574           24.6     21.9

     West                             11,838   11,117    11,600           -2.0      4.3
       California                      5,854    5,484     5,327           -9.0     -2.9
       Oregon                          1,457    1,422     1,585            8.8     11.5
       Utah                            2,218    2,211     2,690           21.3     21.7

     Ice Cream, Regular (Hard) – Cumulative Production: January-April

                                Cumulative Production  Percent Change
                                        (1000 Gallons)      from
     Report Month                       2019     2020       2019
     April                           237,071  231,240       -2.5

     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