MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 8 - Released on February 20, 2020

     ***CORRECTION: Added the Class III Milk Price Table ***

     Central region fluid milk output continues to push close to or above previous year's numbers
     according to dairy farmers. Winter weather has made a late seasonal appearance in the upper
     Midwest, with negative and single digit temperatures this week. Therefore, there may be some
     milk output slips on the week. Currently, though, there is plenty of milk for both bottling
     and processing nationwide and within the region. Speaking of bottlers, some contacts have
     suggested demand from bottlers has slid when comparing to previous years. They relay
     slightly lower January sales numbers. Cheese producers are seeing increasing spot milk
     offers, even those who are uninterested in spot market milk purchasing. Spot prices fell as
     low as $6 under Class this week. During week 8 last year and in 2018, the lowest price was
     $3 under Class. Additionally, a number of cheese plant managers relay they are not adding to
     production schedules, as cheese markets are somewhat uncertain. Ice cream producers have
     added to production schedules, in order to build early inventories. Therefore, cream demand
     picked up slightly. That said, contacts continue to suggest a widely available surplus in
     the region and butter makers relay they are full and offers are aplenty.

     NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     02/14/2020 to 02/20/2020

     Half Gallon, All Fat Tests       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $2.07        $2.96       $2.26
     Organic                      $4.17        $4.04       $3.97

     Regional (Conventional)     Wtd. Ave.      Low         High
     Midwest                       n.a.         n.a.        n.a.
     South Central                $2.31        $1.99       $3.00

     Regional (Organic)          Wtd. Ave.      Low         High
     Midwest                       n.a.         n.a.        n.a.
     South Central                $4.28        $4.28       $4.28

     Gallon, All Fat Tests             Weighted Average Price
     National                   This Period  Last Week   Last Year
      Conventional                $3.72        $2.09       $3.40
      Organic                     $5.99        $5.99       $4.70

     Regional (Conventional)     Wtd. Ave.      Low         High
     South Central                $3.64        $3.49       $3.99

     Price Range - Class III Milk; $/CWT; Spot Basis:   -6.00  -  -2.00
     Trade Activity: Moderate


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0800 - 1.2200
     Price Range - Class II; $/LB Butterfat:      2.0746 - 2.2009
     Multiples Range - Class II:                  1.1500 - 1.2200


     Information for the period February 17 - 21, 2020, 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: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov