MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 2 - Released on January 10, 2019

     Mild, albeit chilly weather has been optimal for dairy cow comfort in the Midwest in the
     first weeks of winter. Recent production has picked up, but contacts relay a general
     resistance to suggest they expect longer-term increases with so many farmers selling out
     and/or shifting away from the dairy business altogether. Fluid milk contacts relay Monday
     was bottling¶s big return following holiday lulls. Schools, and some colleges, have begun to
     refill pipelines. School-based ordering is expected to be strong for two to three more
     weeks. Due to this, spot milk loads headed for cheese vats was, in some cases, at an overage
     when all reported prices last week were discounted. This week¶s prices ranged from $2 under
     to $1 over Class III. Cream also saw an uptick in prices and demand. Butter churning, in
     certain areas, is at its annual acme. Ice cream production is mixed according to variety.
     Contacts suggest cream cheese production will be somewhat strong, as a number of cream
     cheese producers entered 2019 light on inventories. Some contacts expected cream
     availability will continue to tighten into next week.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/28/18
     to 1/3/2019

     Half Gallon, All Fat Tests          Weighted Average Price
     National                   This Period      Last Week     Last Year
      Organic                      $3.91          $3.88          $3.79
      Conventional $2.46$1.18$2.83

     Regional (Conventional)     Wtd. Ave.        Low             High
     Midwest                       n.a.           n.a.           n.a.
     South Central                $2.79          $2.79          $2.79

     Regional (Organic)          Wtd. Ave.        Low             High
     Midwest                      $2.92          $2.79          $3.29
     South Central                $3.03          $2.79          $3.49

     Gallon, All Fat Tests              Weighted Average Price
     National                   This Period      Last Week     Last Year
      Organic                      $6.18          $4.99          $5.83
      Conventional                 $2.50          $2.43          $3.01

     Regional (Conventional)     Wtd. Ave.        Low             High
     Midwest                      $2.55          $1.98          $2.99
     South Central                $2.89          $2.89          $2.89

     Regional (Organic)          Wtd. Ave.        Low             High
     Midwest                       n.a.           n.a.           n.a.
     South Central                 n.a.           n.a.           n.a.


     The DMN monthly average of the range price series for Upper Midwest Class II cream during
     December 2018 was $2.7251, compared to $3.1088 in November.

     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1300 - 1.2500
     Price Range - Class II; $/LB Butterfat:      2.5689 - 2.7923
     Multiples Range - Class II:                  1.1500 - 1.2500


     Information for the period January 7 - 11, 2019, issued weekly
     Published by:

     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home