MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. March 25, 2015 (REPORT 12) 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 - 2.0160-2.1840 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .86-1.11 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 0 104 0 80 0 98 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast is at a steady level. The spring flush is not yet apparent as cooler temperatures continue. As milk prices trend lower dairy farmers are concerned with planning if when to actively begin to cull cows. The Mid-Atlantic and Southeast regions are enjoying milder spring weather that is prompting rises in milk production. Third party sales representing all Classes are down in the Mid-Atlantic. Bottling orders in both regions are still seeing cuts with students absent for spring break. Contacts expect Class I sales to recover with the reopening of a few schools in another week. Manufacturers are currently taking in heavy milk supplies, with spring flush expected to peak in the next few weeks. In Florida, production is surging in some areas, however, overall output is considered flat. Temperatures have been in the 80s with a couple of rainy days mixed in. With the forecast of warmer temperatures going into next week, milk production is expected to slip slightly. Class I sales have dropped due to the spring break for school districts and departure of the state's seasonal population. Surplus milk volumes resulted in 104 exported spot shipments, 24 more than the previous week. According to the DMN National Retail Report-Dairy, for March 20-26, the U.S. weighted average advertised price for a gallon of milk was $2.89, a $0.29 decrease compared to a year ago and a $0.35 decrease from last week. Cream transactions were active at the first of the week, but slowed with some traders finding it more difficult to move cream. Hence, the range for multiples widen compared to the previous week. Cream multiples for all Classes range 1.20-1.30. With cream based holiday production finalized for most processors, cream supplies are likely to be heavy and readily available. Ice cream interest is steady. Yogurt sales are reported up slightly. At the CME Group, Grade AA butter closed Wednesday at $1.6850, up $0.0050 from a week ago. Condensed skim is moving through contracts. Class II interest facilitated marginal increases in ice cream and yogurt production. Transactions in some instances are discounted. The announcement of March Advanced Prices last Wednesday moved the Class II nonfat solids prices higher. MILK PRODUCTION: According to NASS, milk production in the 23 major States during February 2015 totaled 15.1 billion pounds, up 1.7% from one year ago. Eastern state's milk production are as follows: February 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 220 + 4.3 New York 1,063 + 2.3 Pennsylvania 848 + 2.0 Vermont 204 NC Virginia 140 NC 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- home