MD_DA230 Fluid Milk and Cream - Central U.S. Report 25 - Released on June 20, 2019 Milk production is generally steady week over week, but down year to year. Class I sales are slow, as they were expected to be as most school districts have closed down for the summer. That said, there are some summer lunch programs keeping that side of the food service sector going. Class III milk discounts returned with a force this week. Although discounts still do not match historical week 25 lows, they are a little more pronounced than in recent weeks: from $.50 under to $3.00 under Class. Most reported discounts fell closer to the $1 to $2 under Class range. Cream was somewhat available this week. Butter makers, the same who said last week¶s supplies were dried up, reported finding some within their price comfort zone this week. Some suggest cool, wet Midwestern weather has slowed ice cream production. That said, cream is expected to get tight, particularly following 4th of July. Crop progress is mixed from the South-Central throughout the upper Midwest. Lots of rain has undoubtedly influenced expectations in the entire region, as corn/bean planting is delayed alongside wheat harvest. Feed rations are a huge concern in the Midwest, and the effects are longer term than just this summer. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 6/14/19 to 6/20/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $3.87 $4.09 $4.02 Conventional $2.22 $1.26 $2.01 Regional (Conventional) Wtd. Ave. Low High South Central $1.76 $1.58 $1.89 Northwest $2.59 $2.59 $2.59 Regional (Organic) Wtd. Ave. Low High Northeast $3.97 $3.49 $4.49 Northwest $3.65 $2.50 $4.39 South Central $4.02 $3.50 $4.19 Southwest $3.45 $2.99 $3.99 Southeast $4.11 $3.98 $4.19 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.77 $6.02 $6.70 Conventional $2.86 $2.78 $2.82 Regional (Conventional) Wtd. Ave. Low High Hawaii $4.99 $4.99 $4.99 Midwest $2.26 $1.99 $2.50 Northeast $3.49 $3.49 $3.49 Northwest $2.75 $2.50 $2.99 Southwest $2.67 $1.99 $2.99 Regional (Organic) Wtd. Ave. Low High Northeast $6.77 $5.97 $8.99 Price Range - Class III Milk; $/CWT; Spot Basis: -.50 - -3.00 Trade Activity: Moderate Midwestern U.S., F.O.B. Cream Multiples Range - All Classes: 1.2300 - 1.3300 Price Range - Class II; $/LB Butterfat: 3.0334 - 3.1767 Multiples Range - Class II: 1.2700 - 1.3300 Information for the period June 17 - 21, 2019, issued weekly Secondary Sourced Information: The NASS Milk Production report noted May 2019 milk production in the 24 selected states was 18.128 billion pounds, 0.1 percent below a year ago. Milk cows in the 24 selected states totaled 8.8 million head, 55,000 head less than a year ago. The following table shows Central states included in the report and the monthly milk production changes compared to a year ago: May 2019 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 156 -11.4 Indiana 360 - 2.7 Iowa 452 - 0.2 Kansas 327 + 0.9 Michigan 990 + 0.4 Minnesota 858 - 0.2 Ohio 476 - 4.4 South Dakota 236 + 0.4 Texas 1,195 + 5.4 Wisconsin 2,652 - 0.4 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: http://www.ams.usda.gov/market-news/dairy DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home