Fluid Milk and Cream Review - Central

     Fluid Milk and Cream - Central U.S.

     Report 41 - Released on October 11, 2018

     Regional contacts are reporting that the competition is on among processing facilities in
     the Midwest in vying for milk. As component levels continue to be reported at low levels,
     and milk has been diverted from the Upper Midwest and Northeast to Southern and Southeastern
     regions, a peripeteia of sorts has happened for cooperatives and milk suppliers. Instead of
     making calls to find prospective buyers, they are being called, and in some cases simply do
     not have the available milk supplies which were present as recently as a month ago. Milk
     bottling, in and out of the region, is a large cause for the shortening supplies. All that
     said, some producers relay that the bottling pipelines are settling in and more milk loads
     are expected near-term. Some Midwestern cheese producers suggest that cheese markets are not
     stable enough for them to take on extra milk, and at any rate, spot offers are scarce. Spot
     milk headed into cheese vats reached a $2 premium over Class this week. With lower milk fat
     levels reported, cream prices lifted on the bottom of their respective ranges. Butter makers
     are running the churns on a necessity basis, but some have suggested fall inventories are
     beginning to be chipped away at by consistent, and increasing, demand. Wet weather from the
     Upper Midwest to the Southern Central area has set some farmers back somewhat. Delayed
     soybean harvesting, and moisture related mold have been reported in the Midwest; whereas
     areas in the South-Central region have been hammered by heavy rains just after/during
     planned wheat planting.

     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2500 - 1.3200
     Price Range - Class II; $/LB Butterfat:      2.9786 - 3.0479
     Multiples Range - Class II:                  1.2900 - 1.3200

     Information for the period October 8 - 12, 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