MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 21 - Released on May 21, 2020

     Farm milk output is atypically lower in the latter portion of the 2020 spring season. Cow
     culling has affected yields, while weather has been generally comfortable. Some farmer
     contacts have relayed lower component levels for months and that remains to be the case.
     Bottlers report little changes. For the first time in 2020, there were zero sub-Class III
     spot milk prices reported in the Midwest region. Cheesemakers are busier across the board,
     and milk availability is being stretched thinner by the week. Cream is in a similar
     position. Ice cream and cream cheese makers have noticeably been pulling down cream pools.
     Hence, some butter makers have relayed cream is becoming out of their fiscal reach. Corn
     planting has gone exceptionally smoother this year. A majority of corn is reportedly in the
     ground in the upper Midwest. Some precipitation last weekend caused delays in some pockets,
     and there is some more rain forecasted in the ten-day forecast, which could delay planting
     further. First cuttings of hay in the lower portion of the Central region are reportedly
     mixed, depending on precipitation or lack thereof. Winter wheat harvest preparations are
     underway. Winter wheat yield expectations in Texas, Kansas and Oklahoma are lower than they
     were in 2019.

     Price Range - Class III Milk; $/CWT; Spot Basis:   0.00 -  +2.00
     Trade Activity: Active


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2400 - 1.4200
     Price Range - Class II; $/LB Butterfat:      1.9513 - 2.1314
     Multiples Range - Class II:                  1.3000 - 1.4200


     Information for the period May 18 - 22, 2020, 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