MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 37 - Released on September 14, 2023

     Improved cow comfort has roused milk output throughout the region. Cooler temperatures
     throughout the region have increased recent week to week farm level production. After an
     extended hot and dry spell, specifically in the south central area of the country, contacts
     say highs below 90 have brought some relief and slight upticks in recent production. Upper
     Midwestern contacts relay a relatively cool and mild late summer have begun to manifest
     higher output for the past two weeks. Class I intakes are steady after the onset of the
     schoolyear. There are some contacts that say Class I intakes are, relative to last year, a
     little slower. Cheesemakers report that there is a little more milk availability week to
     week, but far from the abundance of the first half of the year. Spot milk prices were
     reported from $.50 to $1.50 over Class this week, compared to flat Class to $.25 over Class
     III last year during week 37. As milk check amounts slide, coop contacts continue to say
     farmers are selling or transitioning their herds. High beef prices are a catalyst for this
     as well. This summer's impact on dairy farmers in the upper Midwest has left some contacts
     with growing concern regarding the number of farms lost to the auction block. Cream
     availability in the region tightened up this week. As butter demand and market tones hold
     intact, butter plant managers are saying they are willing to pay slightly more than their
     normal rate for spot loads of cream. Class II demand has edged lower week by week since mid-
     August, but extended-shelf-life and cream cheese manufacturers are and have been somewhat
     busy this late summer season. Dry conditions in the Upper Midwest have farmers harvesting
     corn for silage at a clip. Dry soil levels are minimizing corn and soybean yield
     expectations week after week in the Central region and upper Midwest.

     Price Range - Class III Milk; $/CWT; Spot Basis:    .50 - 1.50
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Price Range - All Classes; $/LB Butterfat:   3.3875 - 3.7398
     Multiples Range - All Classes:               1.2500 - 1.3800
     Price Range - Class II; $/LB Butterfat:      3.5230 - 3.7398
     Multiples Range - Class II:                  1.3000 - 1.3800


     Information for the period September 11 - 15, 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