MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. February 11, 2015 (REPORT 6) 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 - 1.9882-2.2232 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .95-1.08 Northeast - Class III - spot prices - 1.00-1.25 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 60 0 0 0 80 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast region, winter storm Marcus dropped heavy snowfall from upstate New York into New England. Problematic conditions are significantly disrupting milk pick-ups and deliveries and expected to continue toward the end of the week as more snow is probable. An additional 20 to 30 inches are predicted, along with an Arctic blast forecasted to bring the coldest weather this winter. Class I sales rose. However, milk flow to bottling has been held up in some instances, as haulers are cautious of road conditions, and succumbing to fatigue as the winter storms carry on. Milk production at the farm level is steady. Manufacturing milk supplies are heavy. Farm level milk output in the Mid- Atlantic region is climbing seasonally. Processors' milk intakes are heavy. Some plants are managing supplies through discounted transactions. Class I demand is at seasonal levels. Southeast milk production continues to show upside. Sales to bottling are down. Milk production in Florida continues to increase. Classes I sales are steady. Bottling orders are mixed, with some plants adding to orders as others are seeing cuts. The state saw significant milk fluctuations from imports to surpluses over the past month. This week, milk shipments totaled 60 export loads, compared to a balanced market last week. Cream multiples for all Classes range 1.10-1.23, unchanged from the previous week. Cream remains heavy. Sellers are discounting loads, as bottling demand increases available supplies to the market. Sales are in general slow, although there are noted pockets of demand in areas of the region. Some sellers are concerned as Passover and Easter transactions have yet to take off. Cream volumes clearing to ice cream are seeing some increase. Condensed skim supplies are ample. The market is somewhat quiet, as contractual transactions primarily drive activity. Heavy volumes are clearing to the drying process. Surplus condensed supplies are building in the Northeast part of the region while a dryer is offline. Some sellers noted they are confident considering current condensed skim supply levels, due to good demand in the nonfat dry milk market. According to the DMN National Retail Report-Dairy, for February 6-12, the U.S. weighted average price for a gallon of milk was $2.99, a $0.41 decrease compared to one week 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