MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 49 - Released on December 06, 2018

     Milk production in the Midwest is up from recent weeks, but slightly down year over year.
     Declining feed quality has some contacts suggesting milkfat volumes are lower than in recent
     years, but some have relayed that components are down slightly, but sufficient. Bottling
     demand is slower than expected this year, and milk loads are not short of most processing
     needs in the region. Cheesemakers are reporting spot milk prices from $1 over to $3 under
     Class. Locality is the difference. While milk loads are harder to find in the northeast
     section of the region, cheesemakers in the central and upper Midwest suggest loads are
     generally available. Cream loosened up a bit this week. Some butter makers in the region
     took on cream at lower prices than last week, while others are continuing to forego the spot
     cream market. Northeastern cream users are taking on cream from the Midwest, and this has
     helped quell/delay the seasonal cream price downswing. That said, some contacts suggest next
     week may be the last push for holiday manufacturing. As such, they suggest cream will be
     more widely available over the next two weeks.

     The DMN monthly average of the range price series for Upper Midwest Class II cream during
     November 2018 was $3.1088, compared to $3.0180 in October.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 11/30/18
     to 12/06/2018

     Half Gallon, All Fat Tests
                       Weighted Average Price
     National     This Period   Last Week  Last Year
     Organic         $4.38        $2.99      $3.71
     Conventional    $2.18        n.a.       $2.33

     Regional (Conventional)
                   Wtd. Ave.      Low         High
     Midwest        $0.77         $0.77      $0.77
     South Central  $1.89         $1.89      $1.89

     Regional (Organic)
                   Wtd. Ave.      Low         High
     Midwest         n.a.         n.a.        n.a.
     South Central  $4.24         $3.99      $4.49

     Gallon, All Fat Tests
                       Weighted Average Price
     National     This Period   Last Week  Last Year
     Organic        $5.64         $7.57      $6.22
     Conventional   $2.34         $2.09      $2.34

     Regional (Conventional)
                   Wtd. Ave.      Low         High
     Midwest        $2.42         $1.49      $2.99
     South Central   n.a.         n.a.        n.a.

     Regional (Organic)
                   Wtd. Ave.      Low         High
     Midwest         n.a.         n.a.        n.a.
     South Central $6.29         $6.29       $6.29

     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2000 - 1.3200
     Price Range - Class II; $/LB Butterfat:      2.8442 - 2.9330
     Multiples Range - Class II:                  1.3000 - 1.3200

     Information for the period December 3 - 7, 2018, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released December 4, 2018, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production ± States and United States: October 2017 and 2018
                                     Monthly Production (1000 pounds)    Percent Change from
     Total  Cream, Regular (Hard       October   September   October       October  September
     Region                               2017        2018      2018          2017       2018
     United States                      56,616      59,019    60,526           6.9        2.6

     Atlantic                           13,417      13,009    14,817          10.4       13.9
       Pennsylvania                      3,560       1,693     3,353          -5.8       98.1

     Central                            31,673      35,104    34,737           9.7       -1.0
       Missouri                          2,455       3,088     2,465           0.4      -20.2
       Ohio                              2,127       2,092     2,247           5.6        7.4

     West                               11,526      10,906    10,972          -4.8        0.6
       California                        6,603       5,407     5,367         -18.7       -0.7
       Oregon                              970       1,090     1,091          12.5        0.1
       Utah                              2,093       2,242     2,316          10.7        3.3

     Ice Cream, Regular (Hard) ± Cumulative Production January - October
                       Cumulative Production   Percent Change
                           (1000 pounds)            from
     Report Month          2017        2018         2017
     October            666,524     638,006         -4.3
     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