MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 50 - Released on December 13, 2018

     Although week to week milk projections are steady, yields are down when compared to recent
     years. A regularly relayed topic from Midwestern contacts is the mass exodus of dairy
     farmers in the upper Midwest and how it will affect 2019 milk supplies. Some contacts
     suggest if cull cow prices were any higher, the number of shuttering farms would climb
     faster than it already has. Class I demand is lower ahead of school breaks. Some milk loads
     originating in the Midwest continue to find their way into Southeastern bottling plants.
     Thus, some cheesemakers found themselves paying overages this week. Reported spot milk
     prices ranged from $3 under to $2.50 over Class III. Cheesemakers and milk suppliers are
     working out agreements for this week and the next two weeks in order to ensure all milk
     loads will be accounted for. Class II cream prices slipped somewhat ahead of the holiday.
     Some butter makers are pulling cream from the Western region, if freight expenses do not
     offset the savings of finding loads locally. Snow, in parts of the lower Midwest, has kept
     farmers on hold even longer to harvest corn and beans, while most farmers have wrapped up
     the season.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/7/18
     to 12/13/2018

     Half Gallon, All Fat Tests
                       Weighted Average Price
     National    This Period    Last Week   Last Year
      Organic       $3.71         $4.38       $3.52
      Conventional  $2.33         $2.18       $2.23

     Regional (Conventional)
                   Wtd. Ave.       Low         High
     Midwest       $1.99         $1.98       $1.99
     South Central  n.a.          n.a.        n.a.

     Regional (Organic)
                   Wtd. Ave.       Low         High
     Midwest        n.a.          n.a.        n.a.
     South Central $2.99         $2.99       $2.99


     Gallon, All Fat Tests
                       Weighted Average Price
     National    This Period    Last Week   Last Year
      Organic       $4.80         $5.64       $5.94
      Conventional  $3.25         $2.34       $2.38

     Regional (Conventional)
                   Wtd. Ave.       Low         High
     Midwest        n.a.          n.a.        n.a.
     South Central $2.51         $1.99       $2.99

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

     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2000 - 1.3100
     Price Range - Class II; $/LB Butterfat:      2.8123 - 2.9239
     Multiples Range - Class II:                  1.2600 - 1.3100

     Information for the period December 10 - 14, 2018, 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