MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  March 18, 2015 (REPORT 11)                                                  

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 -  2.0691-2.1888                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -  1.06-1.10                       
Northeast - Class III - spot prices -  1.19-1.22                                          

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    80     0    40     0    70                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Eastern balancing plants are already considering the potential impact of 
the approaching spring flush, with regard to estimated milk production 
levels and global dairy market projections.  Milk production in the 
Northeast is steady to lighter this week.  Contacts attribute a slight 
drop in milk volumes to record cold that subdued parts of the region a few 
weeks ago.  Processors' milk supplies are adequate and facilitate most 
production needs.  Bottling orders are at expected levels, while Class I 
sales are posting declines as some schools closed for spring break. 
Milk production in the Mid-Atlantic region is increasing.  Fluid milk 
volumes clearing to manufacturing are heavier than last week.  Class I 
sales declined with cuts on bottling orders in lieu of school closings. 
Farm-level milk production in the Southeast is climbing.  As Class I sales 
decline, prompted by spring vacation for area students, more loads are 
being re-directed to various manufacturing channels.  Florida's milk 
production is steady.  Bottling sales are at expected levels.  Class I 
sales declined as spring break closings continue at various state schools.  
Export shipments totaled 80 spot loads this week, 40 more compared to last 
week.  According to the DMN National Retail Report-Dairy, for March 13-19, 
the U.S. weighted average advertised price for a gallon of milk was $3.24, 
a  $0.02 decrease compared to a year ago.  Eastern cream continues to 
strengthen.  Cream multiples for all Classes range 1.23-1.28.  The current 
weakness in butter is being passed to cream prices.  Cream supplies are 
exchanging primarily through contracts with limited spot offerings.  
Easter/Passover holiday interest is pivotal to current sale volumes.  At 
the CME Group, Grade A butter closed Wednesday at $1.6800, down $0.0250 
from a week ago.  Condensed skim is not as available, with supplies moving 
through contracts and very few spot sales reported.  Some market 
participants note that condensed skim is more manageable than one year 
ago.  

1300C Daniel.Johnson@ams.usda.gov 608.278.415
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-
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