MD_DA230

     Fluid Milk and Cream - Central U.S.

     Report 39 - Released on September 24, 2020

     With weather becoming more optimal for cow comfort, milk is reported as generally plentiful
     for all uses. Southern Central farm reports are showing steady, but more often, positive
     yields. Upper Midwestern farm reports are similar. Class I sales are light. Contacts report
     Class I sales are more in line with a normal off-season (summer) than with a typical onset
     of a schoolyear. That said, cheesemakers are generally busy. A few cheesemakers have
     reported tapering production with updates/maintenance, but most cheesemakers are running
     full or nearly full schedules. Spot milk trading was slow, and the price range remains
     unchanged from week 38. Most cheesemakers report being content with their incoming
     contractual supplies. Cream is also generally available, as regional producers report having
     the option of purchasing from the Western states, where cream is more abundant and usually
     cost-effective. Ice cream production is reportedly steady, as retail sales have continued to
     keep manufacturers somewhat busy for this time of the year. Some storms in the Midwest
     caused drops on corn and bean ratings, but farmers say crop conditions are fairing well in
     most areas when compared to previous years. The corn harvest is underway and mostly
     favorable weather has benefitted harvesters in most of the Midwestern region. Rain,
     residuals of strong gulf storms, has given parts of Texas and Oklahoma much needed
     precipitation. Farmers there report beginning to drill for spring wheat planting.

     Price Range - Class III Milk; $/CWT; Spot Basis:   -2.00 -  1.50
     Trade Activity: Moderate


     Midwestern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2500 - 1.3300
     Price Range - Class II; $/LB Butterfat:      1.9539 - 2.0302
     Multiples Range - Class II:                  1.2800 - 1.3300


     Information for the period September 21 - 25, 2020, issued weekly

     Secondary Sourced Information:

     The NASS Milk Production report noted August 2020 milk production in the 24 selected states
     was 17.8 billion pounds, 1.9 percent above a year ago. Milk cows in the 24 selected states
     totaled 8.840 million head, 51,000 head more than a year ago. The following table shows
     Central states included in the report and the monthly milk production and percent changes
     compared to a year ago:

     August 2020 Milk Production, (USDA-NASS)

                (Million Lb.)       % Change From
                                      1 Year Ago

     Illinois            142           + 2.2
     Indiana             355           + 6.6
     Iowa                449           + 1.8
     Kansas              338           + 6.6
     Michigan            982           + 1.6
     Minnesota           866           + 2.2
     Ohio                474           + 3.5
     South Dakota        267           +10.8
     Texas             1,233           + 7.1
     Wisconsin         2,615           - 0.3

     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