MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 35 - Released on August 31, 2023

     Milk output has slowed throughout the region, but triple digit temperatures in the Upper
     Midwest last week have contacts saying lighter availability is expected this week and next
     week for fluid milk. Class I demand has been reinvigorated, as schools across the region
     have reopened their doors. Spot prices for all Class usages are reportedly increasing.
     Cheesemakers say offers have gone noticeably quiet. There were some trades that took place
     from $.25 to $2.00 over Class, but even those Class III contacts say spot market
     availability was tight. Condensed skim availability is mirroring general availability. Cream
     is one exception in the supply and demand equation. As Class I plants spin off more milk fat
     due to low-fat fluid milk bottling, cream end users say availability has surged in the past
     two weeks. Additionally, Labor Day holidays have kept more cream available for end users at
     butter, ice cream and cream cheese manufacturing facilities. Butter plant managers reported
     receiving regional spot loads in the low/mid 1.20s. There are mixed reports on whether cream
     will tighten further, due to the heat and less than optimal cow comfort levels, moving into
     September. Some contacts say that lighter ice cream demand will keep cream availability
     ample, while others expect cream to return to its recently tighter availability.

     Price Range - Class III Milk; $/CWT; Spot Basis:    0.25 - 2.00
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.2964 - 3.7288
     Multiples Range - All Classes:               1.2200 - 1.3800
     Price Range - Class II; $/LB Butterfat:      3.5126 - 3.7288
     Multiples Range - Class II:                  1.3000 - 1.3800


     Information for the period August 28 -  September 1, 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