MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 43 - Released on October 22, 2020

     Fluid milk reports are flat to higher. Farmers who have lighter herd numbers report cow to
     cow production is up, although overall milk output is lighter. Mostly, though, farm milk
     output is increasing with improved cow comfort conditions due to cooler fall weather
     throughout the entire region. Contacts expect some market reactions to the NASS Milk
     Production report, which was released on Monday. Each of the Central states showed modest to
     notable gains in annual milk production percentages. After last week's Class I demand
     increases, there were some mixed notes this week. Some school district ordering has quieted
     after pipelines have been fulfilled. Cream cheese producers are busy. Contacts say cream
     cheese is moving well in the grocery sector, and producers are working to fulfill those
     needs. Cream demand from cream cheese makers has responded in kind. Butter makers continue
     to report finding cream loads within their financial grasp. They report late week cream
     availability remains in the mid 1.20s, while other producers say cream is pushing up. Cream
     suppliers and customers continue to work through 2021 contracts. Midwestern contract pricing
     is reportedly similar to 2020 in some cases, while others report increases due to new plant
     openings and higher transportation costs. Corn harvesting in the upper Midwest, in most
     areas, continues to push ahead of recent years' levels. Some precipitation last week did
     little to hinder fieldwork. Much of the same can be said for soybean harvests in the
     Midwest. Dry weather, with little to no precipitation in the past month, has hindered winter
     wheat planting in parts of Kansas, Oklahoma and Texas.

     Price Range - Class III Milk; $/CWT; Spot Basis:   -1.00 -  .50
     Trade Activity: Slow


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2500 - 1.4000
     Price Range - Class II; $/LB Butterfat:      1.9273 - 2.0755
     Multiples Range - Class II:                  1.3000 - 1.4000


     Information for the period October 19 - 23, 2020, issued weekly

     Secondary Sourced Information:

     The NASS Milk Production report noted September 2020 milk production in the 24 selected
     states was 17.2 billion pounds, 2.4 percent above a year ago. Milk cows in the 24 selected
     states totaled 8.851 million head, 46,000 head more than a year ago. The following table
     shows Central states included in the report and the monthly milk production and percent
     changes compared to a year ago:

     September 2020 Milk Production, (USDA-NASS)

                (Million Lb.)       % Change From
                                      1 Year Ago

     Illinois            137           + 3.0
     Indiana             350           + 9.0
     Iowa                439           + 2.8
     Kansas              332           + 6.8
     Michigan            950           + 2.3
     Minnesota           831           + 2.7
     Ohio                457           + 4.6
     South Dakota        264           +12.3
     Texas             1,211           + 6.5
     Wisconsin         2,518           + 0.7

     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