MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. February 04, 2015 (REPORT 5) EAST FLUID MILK AND CREAM REVIEW FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES: SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT: F.O.B. producing plants: Northeast - 1.8144-2.1278 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .93-1.08 Northeast - Class III - spot prices - 1.10-1.35 SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA AND OTHER SOUTHEASTERN STATES THIS WEEK LAST WEEK LAST YEAR IN OUT IN OUT IN OUT FLORIDA 0 0 0 0 0 53 SOUTHEAST STATES 0 0 0 0 0 0 The Northeast has been blistered by a second snow storm in as many weeks. The wintery conditions brought transportation to a halt, while leaving massive amounts of snow on roadways in Massachusetts and parts of New York. Schools were cancelled as roads also turned icy as temperatures plummeted below zero. Milk production is still strong in the region. Manufacturers experienced some disruptions due to milk delays. Classes I sales are good. Milk supplies in the Mid-Atlantic region are heavy. A few truck loads were delayed to wintery conditions. Classes I sales are slightly down from last week, shifting loads to manufacturing. Milk production in the Southeast is steady to increasing. Milk into manufacturing is close to 50% capacity. Classes I sales are seeing some decline. Distributors are expecting a February bounce back, as sales are below expectations. Florida's farm level milk production is showing an uptick. This week milk shipments are balanced with no imports or exports. Class I demand is sluggish. Weather is seasonally normal although somewhat cooler. Contractual cream deliveries were cut, with trucking delays, due to heavy snowfall in the Northeast. The latest round of snowstorms and multiple loads clearing into the Central region impacted prices on the lower end of the range. Cream multiples for all Classes range 1.10-1.23. Manufacturers report limited spot trading as churns in general have ramped up butter production. Condensed skim is readily available. Milk production rates are fueling supply levels at most manufacturing plants. Condensed skim Class II spot transactions are sluggish, with prices noted as flat to 3 over the market. Volumes are being cleared to dryers as plants balance heavy condensed skim milk supplies. According to the DMN National Retail Report-Dairy, for January 30-February 05, 2015 the U.S. weighted average price for a gallon of milk was $3.40, a $0.39 increase compared to one year ago. The DMN monthly average of the range price series for Northeast Class II cream during December was $1.8316, compared to $2.0487 a year ago. DAIRY PRODUCTS: According to NASS, U.S. hard ice cream production in the Atlantic region for December 2014 totaled 10.3 million gallons, 14.3% more than a year ago but 7.2% less than the previous month. U.S. yogurt production totaled 388.5 million pounds, up 1.0% from a year ago and 20.2% from the previous month. Cumulative 2014 production totals 4.741 billion pounds, 0.5% higher than a year ago. 1300C Daniel.Johnson@ams.usda.gov 608.278.4156 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da- home