MD_DA230 Fluid Milk and Cream - Central U.S. Report 20 - Released on May 16, 2019 Farm milk production is steady to up in the Central region. In the southern area of the region, production is going strong while steadier in the upper Midwest. Some contacts have relayed last week¶s milk output was down, while this week has come back up to seasonal levels. All said, milk supplies are shorter this year than in the previous years during peak flush season. Class I markets have slowed down ahead of the summer break for schools. Feed rations for dairy farmers in the upper Midwest are slight. Cheesemakers are slow to take on spot milk loads, particularly as discounts as recently as 2017 were $6 under Class during this week of the year. This year, premium prices matched the discounts as spot milk prices ranged from $2 under to $2 over. Many cheesemakers reported opting out of the spot market, and some are selling extra milk loads back into the market at an overage. Cream multiples are beginning to push upward as well. A majority of contacts expect cream tightness to continue until Memorial Day weekend and then continue the push thereafter as skimming of school milk will slow down in most areas, except in some large market cities where more summer school meal programs continue. Ice cream makers are slowly and steadily taking on more cream, while butter churners are reporting a mix of steady to dwindling cream purchases, likely depending on location. Butter makers say their cream sources are primarily coming from regional suppliers, as trucking costs from Western cream sources have broached financial viability. Most butter churners, who are already micro-fixing at least somewhat, are expecting to shift to that production method more in the next few weeks. Corn planting is getting underway in the Midwest, as farmers have had some clear days. That said, planting is somewhat behind schedule. Southern Central farmers report first-cuttings of alfalfa are delayed due to wet/muddy fields, while standing water in wheat fields has left some noticeable dead spots. All said, there are some delays in both planting and the potential harvest, with more rain in the upcoming weekend/early week forecast. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 5/10/19 to 5/16/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $4.02 $3.87 $3.94 Conventional $1.89 $1.16 $2.43 Regional (Conventional) Wtd. Ave. Low High South Central $1.89 $1.89 $1.89 Regional (Organic) Wtd. Ave. Low High Northeast $5.99 $5.99 $5.99 Northwest $3.65 $2.50 $3.99 Southeast $4.00 $4.00 $4.00 Southwest $4.09 $2.99 $4.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.29 $6.99 $6.47 Conventional $2.56 $2.51 $2.48 Regional (Conventional) Wtd. Ave. Low High Midwest $2.50 $2.50 $2.50 Northwest $2.75 $2.50 $2.99 Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northeast $6.99 $6.99 $6.99 Southeast $4.99 $4.99 $4.99 Price Range - Class III Milk; $/CWT; Spot Basis: -2.00 - +2.00 Trade Activity: Slow Midwestern U.S., F.O.B. Cream Multiples Range - All Classes: 1.2200 - 1.3100 Price Range - Class II; $/LB Butterfat: 2.9012 - 3.0163 Multiples Range - Class II: 1.2600 - 1.3100 Information for the period May 13 - 17, 2019, 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: http://www.ams.usda.gov/market-news/dairy DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home